High prices slow down Personal Consumption Expenditure (PCE)

Despite the upsurge in remittances of the country’s OFWs, the continued hike in the prices of goods and services set back consumer spending in the fourth quarter, as PCE grew at a slower pace of 5.2 percent from 5.7 percent.

Clothing and Footwear and Household operations showed increased expenditures, growing by 5.5 percent from 4.5 percent and 3.1 percent from 2.8 percent, respectively. Food expenditure maintained its growth of 5.7 percent as in the previous year. Meanwhile, lower growths were noted in Transportation and Communication, which increased by 13.6 percent from 14.0 percent and in Miscellaneous expenditures, up by 5.4 percent from 5.9 percent.

Cutbacks in expenditures were also noted in the following sub-sectors: Fuel, light and water, with negative 2.7 percent from last year’s positive 1.0 percent; Household furnishings, negative 2.9 percent from 2.7 percent; Beverages, negative 2.2 percent from 5.1 percent; and Tobacco, negative 1.6 percent from 1.0 percent in the same period last year.