Consumer spending is a critical economic indicator reflecting the total money households spend on goods and services. It drives economic growth, influencing...
Consumer spending, also known as personal consumption expenditures (PCE), refers to the total money spent by households on goods and services, including durable goods, non-durable goods, and services.
It is a primary driver of economic growth, representing a significant portion of a country's Gross Domestic Product (GDP). Strong consumer spending often indicates a healthy economy, boosting business revenue and employment.
Key factors include disposable income, employment levels, inflation rates, interest rates, consumer confidence, wealth effects, and government fiscal and monetary policies.
It's typically measured through various data points and surveys, such as retail sales reports, personal consumption expenditures (PCE) data released by government agencies, and household expenditure surveys.