Personal consumption expenditures (PCE) are a coincident economic indicator because they provide information about current consumer spending, which is a key component of economic activity. PCE refers to the amount of money spent by households on goods and services.

Unlike leading economic indicators, coincident indicators move in tandem with the overall economy and provide a current snapshot of economic activity. PCE is considered a coincident indicator because it reflects current consumer spending behavior and is closely tied to overall economic activity.

Increases in PCE indicate that consumers are spending more money on goods and services, which can boost economic growth. Conversely, decreases in PCE suggest that consumers are spending less, which can lead to slower economic growth.

PCE is also closely watched by policymakers and economists as it can provide insights into the effectiveness of economic policies and the health of the economy. For example, if PCE suddenly drops, policymakers may consider implementing stimulus measures to encourage consumer spending and boost economic activity.

Overall, PCE is a valuable coincident indicator because it provides a current snapshot of consumer spending behavior and reflects changes in overall economic activity.