Personal consumption expenditure is what households buy (except houses). It is made of durables (cars, appliances), nondurables (clothing, food) and services (haircuts, doctor visits, airline tickets). A convention is made on nondurables to be all items which last less than a year, including clothing. Nondurables expenditure is the most stable component of personal consumption expenditure.
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People buy all kinds of goods and services. Services are, for example, transportation, communication, banking and insurance. Durable goods include furniture, appliances, equipment, cars, etc.. Nondurable goods are all items which would normally be consumed within a year: food, fuel, stationary, and by convention also clothing. |
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