Define: Personal Consumption Expenditures

UK Accounting Glossary

Definition: Personal Consumption Expenditures



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Full Definition of Personal Consumption Expenditures


Personal consumption expenditures, also known as PCE, are all funds spent on goods and services intended for individual consumption or use. Personal consumption expenditures include such items as food, beverages, clothing, and utilities. Personal consumption expenditures are used as the basis for the personal consumption expenditures price index, which is a general consumer inflation index. The personal consumption expenditures price index is similar to the consumer price index. The personal consumption expenditures price index takes into account actual prices paid by households for durable goods as well as non-durables and services. Even though the personal consumption expenditures price index makes constant adjustments for changing consumer spending habits, its conclusions are considered somewhat predictable and therefore has little impact on the markets.


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Personal Consumption Expenditures. PayrollHeaven.com. Retrieved March 31, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/personal-consumption-expenditures/

Definition Sources


Definitions for Personal Consumption Expenditures are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February 2020.