ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is Consumer Spending? Consumer spending is the total money spent on final goods and services by individuals and households for personal use and enjoyment in an economy. Contemporary measures of consumer spending include all private purchases of durable goods, nondurable goods, and services.

Detailed explanation-2: -Household final consumption expenditure consists of expenditure incurred by resident household on goods or services that are used for the satisfaction of needs or wants.

Detailed explanation-3: -Household spending is the amount of final consumption expenditure made by resident households to meet their everyday needs, such as food, clothing, housing (rent), energy, transport, durable goods (notably cars), health costs, leisure, and miscellaneous services.

Detailed explanation-4: -Consumer spending, or personal consumption expenditures (PCE), is the value of the goods and services purchased by, or on the behalf of, U.S. residents. At the national level, BEA publishes annual, quarterly, and monthly estimates of consumer spending.

Detailed explanation-5: -Household final consumption expenditure is typically the larg-est component of final uses of GDP, representing in general around 60% of GDP. It is therefore an essential variable for economic analysis of demand. An additional concept, (household) actual individual consumption, also exists in the SNA.