PCE
Business & Finance abbreviation · Economics
| Stands for | Personal consumption expenditures |
|---|---|
| Categories | Business & Finance |
PCE stands for Personal consumption expenditures, an economics abbreviation.
Measure of spending by US households and nonprofits on goods and services, published monthly by the Bureau of Economic Analysis. The associated PCE price index is the Federal Reserve's preferred inflation gauge, with a 2 percent target.
Example: Core PCE inflation, the Fed's favored gauge, slowed to 2.6 percent in the latest report.
Usage notes
The Fed adopted PCE inflation as its main measure in 2000 and set an explicit 2 percent target in 2012. PCE inflation usually runs a few tenths of a point below CPI inflation because it has broader coverage, gives less weight to housing and reflects consumers switching to cheaper goods. Consumer spending makes up about two-thirds of US GDP.
Related abbreviations
More economics abbreviations
- NFP – Nonfarm payrolls
- NGDP – Nominal gross domestic product
- NIRP – Negative interest-rate policy
- NTB – Non-tariff barrier
- ODA – Official development assistance
- PBoC – People's Bank of China
- PED – Price elasticity of demand
- PIIGS – Portugal, Ireland, Italy, Greece and Spain
- PMI – Purchasing Managers' Index
- PPF – Production possibilities frontier
- PPI – Producer price index
- PPP – Public-private partnership