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Personal consumption expenditure (PCE) measures how much consumers spend on goods and services. Goods are divided into two categories, durable goods such as appliances and cars and non-durable goods such as groceries and clothing. Services include items such as insurance, school fees and legal advice. Personal consumption is responsible for almost 70% of economic output. It is an important economic indicator which is closely followed by the monetary policy committee (MPC) and makes a significant contribution to GDP.