The Expenditure Approach II

In the US, the major portion of GDP consists of Personal consumption expenditures, denoted by C, which is spending by households, distinct from spending by the government.

It primarily measures the goods and services purchased by or on behalf of persons who are residents of the United States, such as when an employer-provided health insurance plan pays for a medical visit. It is classified by product types.

Durable goods have a longer average useful life. Examples include cars, furniture, jewelry, watches, and major household appliances such as refrigerators.

Nondurable goods have a shorter average useful life. Examples include food, clothing, footwear, personal care products, and fuel.

Services are commodities that cannot be stored and are usually consumed at the place and time of purchase. Some examples include healthcare, transportation, recreation services, and rental of tenant-occupied housing.

Services also include the imputed rental of owner-occupied housing, which refers to the estimated value of housing services homeowners receive by living in their homes.

To summarize, Personal consumption expenditures provide a detailed view of household spending.