Personal Spending, Consumption
Personal Spending, Consumption
This indicator consists of three parts: service spending, durable goods spending and all other goods. It is similar to the Retail Sales Index except it also includes services spending which Retail Sales does not. Personal spending displays a smoother picture of change due to this component as all real changes in the sphere of services tend to occur gradually because of the specificity of the consumption process of citizens. However, in comparison with ISM the Personal Spending Index is more accurate as it is less dependent on psychological factors. Only considerable deviation of this index from the norm is a factor that influences the Forex market. An increase in this index will positively affect the national currency.
