Personal Consumption Expenditures
New Classification System
Clint McCully, Chief Consumption Branch, NIWD
National Economic Accounts Data Users’ ConferenceApril 13, 2007
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PCE ClassificationBackground
PCE classification system born in 1947 Since 1947 . . .
Large increases in consumer incomes Changes—demographic, technological, cultural, legal, tastes Many new goods and services Increased importance of services, including nonprofit
organizations Marginalization/obsolescence of other goods and services New and expanded sources of funding
PCE classification in 2007 About the same as 1947
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New PCE ClassificationWhat It Is
New structures Type of expenditure (functional) Type of product (by durability)
Functional structure combines structures for individual and nonprofit consumption in the 1993 UN System of National Accounts
Classification of Individual Consumption by Purpose (COICOP)
Classification of Total Outlays of Non-Profit Institutions
Serving Households (NPISH) by Purpose (COPNI) Product structure follows SNA classification of durable
goods, semidurable goods, nondurable goods, and services
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New PCE ClassificationWhat It Accomplishes
Creates a relevant, logical and demand-based structure
Accounts for transactions between households and NPISH
Achieves greater consistency with household surveys
Improves PCE deflation by precisely matching categories with associated price indexes
Facilitates comparisons with other countries
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New PCE Classification Incorporation
2002 I/O benchmark estimates Functional classification Released in 2007
Benchmark estimates in 2008 Time series back to 1929
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PCE Functional Classification: New and current
CURRENT
1. Food and tobacco2. Clothing, accessories, and
jewelry3. Personal care4. Housing5. Household operation6. Medical care7. Personal business8. Transportation
9. Recreation10. Education and research11. Religious and welfare
activities
12. Foreign travel by U.S. residents
NEW Household Consumption Expenditures
1. Food and non-alcoholic beverages2. Alcoholic beverages and tobacco3. Clothing and footwear4. Housing, water, electricity, gas and other
fuels5. Furnishings, household equipment and
routine household maintenance6. Health7. Transportation8. Communication9. Recreation and culture10.Education11. Restaurants and accommodation
services12. Insurance and other financial
services 13. Miscellaneous goods and services 14. Net foreign travel and remittances
Final Consumption Expenditures of Nonprofit Institutions Serving Households (NPISH)
1997
5547.45440.4 421.5 115.4 263.8 999.1
268.1
932.8 634.4 121.6 521.9 98.3 340.6
427.6326.0-21.1107.3
5547.4
850.0337.4
82.9842.6616.2
1002.8412.9685.2
474.5129.7134.2
-21.1
No change in total
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PCE Functional Classification: New and current
CURRENT
1. Food and tobacco2. Clothing, accessories, and
jewelry3. Personal care4. Housing5. Household operation6. Medical care7. Personal business8. Transportation
9. Recreation10. Education and research11. Religious and welfare
activities
12. Foreign travel by U.S. residents
NEW Household Consumption Expenditures
1. Food and non-alcoholic beverages2. Alcoholic beverages and tobacco3. Clothing and footwear4. Housing, water, electricity, gas and other
fuels5. Furnishings, household equipment and
routine household maintenance6. Health7. Transportation8. Communication9. Recreation and culture10.Education11. Restaurants and accommodation
services12. Insurance and other financial
services 13. Miscellaneous goods and services 14. Net foreign travel and remittances
Final Consumption Expenditures of Nonprofit Institutions Serving Households (NPISH)
1997
5547.45440.4 421.5 115.4 263.8 999.1
268.1
932.8 634.4 121.6 521.9 98.3 340.6
427.6326.0-21.1107.3
5547.4
850.0337.4
82.9842.6616.2
1002.8412.9685.2
474.5129.7134.2
-21.1
New categories
Disappearing Categories
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PCE Functional Classification: New and current
CURRENT
1. Food and tobacco2. Clothing, accessories,
and jewelry3. Personal care4. Housing5. Household operation6. Medical care7. Personal business8. Transportation9. Recreation10. Education and research11. Religious and welfare
activities12. Foreign travel by U.S.
residents
NEW Household Consumption
Expenditures1. Food and non-alcoholic beverages2. Alcoholic beverages and tobacco3. Clothing and footwear4. Housing, water, electricity, gas and other
fuels5. Furnishings, household equipment and
routine household maintenance6. Health7. Transportation8. Communication9. Recreation and culture10.Education and research11. Restaurants and accommodation
services12. Insurance and other financial
services 13. Miscellaneous goods and services 14. Net foreign travel and remittances
Final Consumption Expenditures of Nonprofit Institutions Serving Households (NPISH)
421.5
115.4
18.2 Pet
food 294.9
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PCE Functional Classification: New and current
CURRENT
1. Food and tobacco2. Clothing, accessories,
and jewelry3. Personal care4. Housing5. Household operation6. Medical care7. Personal business8. Transportation9. Recreation10. Education and research11. Religious and welfare
activities12. Foreign travel by U.S.
residents
NEW Household Consumption
Expenditures1. Food and non-alcoholic beverages2. Alcoholic beverages and tobacco3. Clothing and footwear4. Housing, water, electricity, gas and other
fuels5. Furnishings, household equipment and
routine household maintenance6. Health7. Transport8. Communication9. Recreation and culture10.Education and research11. Restaurants and accommodation
services12. Insurance and other financial
services 13. Miscellaneous goods and services 14. Net foreign travel and remittances
Final Consumption Expenditures of Nonprofit Institutions Serving Households (NPISH)
103.6 Telephone
188.7
268.1
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PCE Product Classification NEW Structure CURRENT Structure
Durable Goods
Motor vehicles
Furnishings & durable household equipment Recreational equipment & vehicles Other durable goods
Nondurable Goods
Semidurable goods
Clothing and footwear
Recreational and reading items
Household itemsMotor vehicle parts & accessoriesPersonal items
Other nondurable goodsPurchased food, beverages and tobaccoGasoline and other energy goodsOther nondurable goods, n.e.c.
Durable Goods
Motor vehicle and partsFurniture and household equipmentOther
Nondurable GoodsFoodClothing and shoes
Gasoline, fuel oil & other energy goodsOther
557.6254.0130.8
99.773.2
1465.0473.8
249.3
114.4
58.3
39.1
12.8991.2537.0
147.7306.6
692.7305.1256.2
131.4
1619.0796.2
258.1
147.7
416.9
1997
To semidurables
Purchased meals to services
New categories
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PCE Product Classification (cont.)
NEW Structure CURRENT Structure
Services
Housing Household operation services Transportation services Medical care services Recreation services Other services
Services Household consumption expenditures
Housing and utilitiesHealth careTransportation servicesRecreational and cultural activitiesRestaurants and accommodation servicesInsurance and other financial servicesOther services
Final consumption expenditures of nonprofit institutions serving households
3524.8
3417.6
975.9803.8
206.9213.9340.6
427.6
448.9107.2
1997
3235.8
842.6337.0
245.7873.0215.1722.4
New categories
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PCE Product Classification
NEW Structure CURRENT Structure
Durable Goods
Motor vehiclesRecreational equipment & vehicles……..
Nondurable GoodsSemidurable goodsMotor vehicle parts & accessories……..Other nondurable goods……..
Services
…….
Durable GoodsMotor vehicle and partsFurniture and household equipmentOthers
Nondurable GoodsFoodClothing and shoesGasoline, fuel oil & other energy goodsOthers
ServicesHousingHousehold operation servicesTransportation servicesMedical care servicesRecreation servicesOther services
254.0
9.2
41.9
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PCE Product Classification
NEW Structure CURRENT Structure
Durable Goods……..
Nondurable GoodsSemidurable goodsOther nondurable goodsFood and non-alcoholic beveragesAlcoholic beverages & tobacco……..Nondurable recreational items, n.e.c.……..
Services……..Restaurants & accommodation…….
Durable GoodsMotor vehicle and partsFurniture and household equipmentOthers
Nondurable GoodsFood Clothing and shoesGasoline, fuel oil & other energy goodsOthers
ServicesHousingHousehold operation servicesTransportation servicesMedical care servicesRecreation servicesOther services
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