Monday, June 1, 2009

The Latest Expansion's GDP, PCE's Part II

Let's continue a look at the latest expansion's GDP with an in-depth look at PCEs.

Consumers continued to devote a larger percentage of their spending to durable goods for most of the expansion. Notice this percentage topped out in the last three quarters of 2007 before falling sharply for the next four quarters.
Non-durables as a percentage of income also increased, but they topped at an earlier time -- the first quarter of 2007. Then they continued to drop as a percentage of PCEs until their spike last quarter.

Oddly enough, services decreased as a percentage of PCEs until the third quarter of 2007 when they started moving higher.