Friday 13 March 2015

Energy expenditures as a percentage of consumer spending

Here is a graph of expenditures on energy goods and services as a percent of total personal consumption expenditures through January 2015.



This is one of the measures that Professor Hamilton at Econbrowser looks at to evaluate any drag on GDP from energy prices.



Energy Expenditures as Percent of GDP

Click on graph for larger image.



Data source: BEA Table 2.3.5U.



The huge spikes in energy prices during the oil crisis of 1973 and 1979 are obvious. As is the increase in energy prices during the 2001 through 2008 period.



With some further declines - WTI oil futures fell 4% today to $45.09 per barrel - we might see energy expenditures as a percent of PCE at new lows and resume the long term down trend.



from Calculated Risk http://ift.tt/1wF2hEn

via YQ Matrix

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