Comparisons with other data sources 

.------------------------------------------------------------. 

As part of the evaluation of the Consumer Expenditure Survey results, BLS compares its estimates of aggregate consumer expenditures with independent sources of data. Consumer Expenditure Survey data in these comparisons are integrated data from both the Interview and Diary surveys, unless otherwise noted. To facilitate comparison, some adjustments are made to the Consumer 

Expenditure Survey data and the independent sources to account for differences in concept and 

coverage. The degree of comparability varies by component, as noted in the tables. Data are not 

shown when differences in concept or content are so great that comparison would be meaningless. 

Because most agencies have revised their estimates since publication of data in the last Consumer 

Expenditure Survey report, readers should avoid comparing these ratios with those in earlier BLS 

publications. Additionally, Consumer Expenditure Survey data and several of the independent source 

data are subject to both sampling and non-sampling error. Comparisons allow monitoring of estimates for consistency over time. 

Personal Consumption Expenditures. The principal source 

of independent estimates used in comparisons with the 

Consumer Expenditure Survey is the Personal Consumption Expenditures (PCE) component of the National 

Income and Product Accounts (NIPA), published by the 

Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce. PCE estimates of aggregate expenditures represent the market value of goods and services purchased by all persons. These estimates are derived by complex methods that trace the flow of goods and services 

through the economy. Total expenditures of persons 

includes expenditures of the civilian population of the 

United States, including persons living abroad, persons in 

the military, and nonprofit institutions. (Expenditures of 

nonprofit institutions are not distributed among individual 

goods. Instead, they are included in specific service categories-primarily medical care, education and research, 

and religious and welfare activities-categories that are 

not compared with Consumer Expenditure Survey data.) 

PCE estimates are not directly subject to the quantifiable 

sampling errors found in household surveys; they are subject to sampling and non-sampling errors in the source 

data from which they are derived. They are also subject to 

difficulties in applying complex procedures for allocating these data among the final demand sectors. 

BEA conducts comprehensive revisions of the NIPA at 

approximately 5-year intervals, primarily to update the 

series with new results from the Census Bureau's quinquennial censuses and other sources used in the accounts. 

This kind of revision is referred to as benchmarking. Such 

revisions may also include revisions to selected methods 

of estimation. PCE estimates based on different benchmarks sometimes differ by large amounts, and as a result, 

revisions to PCE can have a substantial effect on comparisons with the Consumer Expenditure Survey. In addition. 

BEA conducts annual revisions to PCE that affect earlier 

data and may also include changes in estimation methods. 

Therefore. due to benchmarking and annual revisions to 

PCE. the Consumer Expenditure Survey-to-PCE ratios in 

this report should not be compared with previously published ratios. 

Text table 20 shows Consumer Expenditure Survey 

estimates of aggregate expenditures for selected expenditure categories for 1996 through 1999. adjusted for 

comparability with PCE. and ratios to .PCE. The ratios 

indicate that the Consumer Expenditure Survey estimates 

for the major categories of consumption are lower than 

PCE. For most items. the relationship between the 

two series over time has been generally about the same. 

These include the expenditure categories of food. alcoholic beverages, telephone, apparel and services. and 

entertainment. 

Detailed/ood comparisons. Text table 21 shows detailed 

annual estimates of food-at home expenditures from the 

CE Diary survey compared to PCE. In general, the relationship between CE survey estimates and estimates from 

PCE is as expected and is consistent over the period shown. 

Differences between the CE Diary survey estimates and 

the PCE data are most likely due to differences in the methods of data collection and estimation. These variations 

reflect fundamental differences in the purposrs for which 

Consumer Expenditure Survey, /998-99 35 
the data are collected. Comparisons show that CE Diary 

survey estimates of food-at-home expenditures for 1996 

and 1999 are generally lower than PCE, which is based on 

administrative data and covers a larger population. The 

relatively low ratios may reflect underreporting in the CEo 

National Health Expenditures. The Health Care Financing Administration (HCFA) of the U.S. Department of 

Health and Human Services publishes annual data, referred 

to as National Health Expenditures (NHE), on total aggregate health care expenditures of the United States. Total 

health care expenditures include expenditures for health 

care by all sources in the U. S. economy, including public 

and private sources. The NHE data cover U.S. citizens 

living abroad, military personnel, inhabitants of U.S. territories, and parts of the institutional popUlation (a larger 

population than is covered by the Consumer Expenditure 

Survey). In particular, the NHE is designed to cover the 

nursing home population, whereas the Consumer Expenditure Survey is not. 

Estimates of out-of-pocket personal health care expenditures from NHE are compared to the Consumer Expenditure Survey. Out-of-pocket expenditures for health care 

include expenditures for medical care that are not covered 

by personal health insurance or other sources of payment. 

Such expenditures can include copayments and deductible amounts required by health insurance plans. To 

derive its out-of-pocket estimates, HCFA uses data from 

administrative and industry sources, as well as Consumer 

Expenditure Survey data. 

Text table 22 shows Consumer Expenditure Survey estimates of aggregate expenditures for health care (excluding health insurance, nonprescription vitamins, nursing 

home care, and repair and rental of medical equipment) 

and ratios to NHE estimates of out-of-pocket health care 

expenditures (excluding nursing home care). As reported 

in the Consumer Expenditure Survey, aggregate medical 

care expenditures, excluding those expenditure items reported above, were $105.9 billion in 1999, or 65 perc~nt 

of the NHE estimate of $162.6 billion (excluding nursmg 

home care expenditures). Of the Consumer Expenditure 

Survey total, $47.5 billion were spent on medical commodities and $58.4 billion on medical services. These 

amounts were 65 percent of both the NHE medical commodities and services estimates. Medical services Consumer Expenditure Survey-to-NHE ratios show more variations over the 1996-99 period than do medical commodities. Fluctuations in medical services, such as out-of-pocket 

expenditures for physicians services and hospital care, may 

reflect volatility in spending on personal health care services due to changes in health insurance plans. In addition, comparison of health care expenditures may reflect 

underreporting in the Consumer Expenditure Survey. 

Current Population Survey. The Bureau of the Census 

36 Consumer Expenditure Survey. 1998-99 

collects income data in the Supplement to the Current 

Population Survey (CPS). The CPS is a household interview survey of approximately 60,000 households. Using 

data collected for calendar years 1997 through 1999, comparisons are made with Consumer Expenditure Survey 

estimates of total consumer unit income before taxes and 

by source of income. CPS estimates of aggregate income 

by source of income are derived from Census Bureau estimates of mean income of persons and the number of persons with specified income. 

There are several differences between the Consumer 

Expenditure Survey and the CPS, in the concepts and methods of measuring income. The CPS collects data in March 

for the previous calendar year. By comparison, the Consumer Expenditure Survey estimates of income are 

obtained in the second and fifth interviews of the consumer unit. These estimates refer to the prior 12 months 

and, due to the rotating panel design of the survey, interviews may occur any time during the year. The Census 

Bureau imputes CPS income data that are missing (due to 

nonresponse to income questions) based on demographic 

characteristics. In contrast, income data that are missing in 

the Consumer Expenditure Survey, due to nonresponse, 

are not imputed as part of the Consumer Expenditure Survey estimation procedure. Instead, Consumer Expenditure 

Survey income estimates are based on complete income 

reporters only. Neither procedure accounts for 

underreporting. 

In addition to the differences between the Consumer 

Expenditure Survey and the CPS described above, beginning in 1993, computer-assisted personal interviews collected the CPS income data. By comparison, the Consumer 

Expenditure Survey data are collected by traditional paper and pencil interview. 

Text table 23 shows that the Consumer Expenditure 

Survey estimates of total income before taxes are 81 to 82 

percent of CPS. This reflects comparable levels of estimates from the two surveys for the two largest sources of 

income: wages and salaries (the largest source) and Social 

Security and railroad retirement income. Also, some smaller 

sources of income were comparable between the two surveys: Self-employment income; public assistance and 

Supplemental Security Income; pensions and annuities; 

and alimony, child support, and other regular financial 

support. Some differences in the estimates are expected, 

because of methodology differences between the two surveys described above and because the CPS is designed 

specifically to collect income data, whereas the Consumer 

Expenditure Survey is designed primarily to collect 

expenditure data. (In addition, the CPS population is greater 

than that of the Consumer Expenditure Survey.) Some 

variation in the ratios reflects the difficulty of obtaining 

income information via household survey that is experienced by both the Consumer Expenditure Survey and CPS. 
Text table 20. Comparison of aggregate expenditures for selected expenditure categories: Consumer Expenditure (CE) Survey 

and Personal Consumption Expenditures (PCE). 1996-99 

Consumer Expenditure Survey Ratio of CE to PCE 

Expenditure category (In billions) 

1996 1997 1998 

Food, total ................................ $ 481 $ 488 $500 

Food at home ........................ 294 298 292 

Food away from home 1 ......... 187 190 209 

Alcoholic beverages ................ 32 33 33 

Rent, utilities, and public 

services2 ............................... 382 398 406 

Rented dwellings, total .......... 218 229 237 

Utilities, fuels, and public 

services ................................ 164 169 169 

Telephone ................................ 80 85 89 

Household operations3 ............ 27 29 30 

Household supplies ................. 41 42 42 

Household furnishings and 

equipment ............................. 150 167 '178 

Apparel and services .............. 187 183 180 

Men and boys ....................... 43 41 43 

Women and girls ................... 75 72 70 

Children under 2 .................... 8 8 8 

Footwear ............................... 31 33 30 

Other apparel products and 

services ................................ 30 30 30 

Transportation ......................... 522 525 545 

Vehicle purchases' ................ 263 256 282 

Gasoline and motor oil .......... 113 116 109 

Other vehicle expenses5 ...... 103 114 112 

Maintenance and repairs, 

total .................................... 67 71 69 

Vehicle rental and other 

charges ............................. 35 42 43 

Public transportation ............. 43 39 43 

Entertainment .......................... 173 179 178 

Fees and admissions ............ 46 48 

Televisions, radios; sound 

equipment ............................ 59 61 

Pets, toys, and playground 

equipment ............................ 35 35 

Other entertainment supplies; 

equipment ............................ 34 36 

Personal care products and 

services ................................. 53 56 

Reading ................................... 23 24 

Tobacco products and 

smoking supplies .................. 27 28 

Miscellaneous6 ........... .. ...... ..... 40 42 

1 Excludes school lunches and meals as pay. 

21ncludes rent for tenant-occupied dwelling units and lodging 

away from home and at school. Rent in the CE is contract rent, 

which includes utilities for some renters. The CE covers direct 

costs of utilities and fuels by homeowners and renters. In PCE, 

data are for space rent, which excludes charges for utilities. PCE 

data cover total expenditures for utilities and fuels, even if paid by 

landlords. 

3Excludes amounts for baby-sitting, daycare centers and care 

of invalids or the elderly. 

'PCE estimates are derived using estimates of dealer margin 

and wholesale value of net transactions between persons and 

government, foreigners, and non-dealer businesses. CE data on 

vehicle purchases and trade-ins were combined to approximate 

total value of new vehicle purchases. CE data on used vehicle 

purchases, trade-ins, sales and losses were combined to ap48 

60 

35 

34 

43 

24 

29 

40 

1999 1996 1997 1998 1999 

$533 0.73 0.72 0.71 0.71 

312 .72 .72 .68 .70 

221 .75 .72 .75 .74 

34 .33 .32 .31 .30 

414 .95 .96 .96 .95 

248 1.00 1.02 1.01 1.01 

166 .89 .90 .91 .87 

92 .83 .81 .79 .76 

37 .73 .74 .69 .79 

45 .54 .53 .51 .52 

180 .64 .67 .68 .63 

190 .57 .54 .50 .48 

46 .56 .51 .50 .50 

71 .61 .56 .51 .48 

7 .88 .75 .70 .60 

33 .80 .83 .72 .76 

33 .37 .36 .34 .34 

594 .88 .85 .85 I .85 

323 1.17 1.10 1.10 1.13 

114 .93 .93 .97 .92 

116 .56 .57 .54 .53 

72 .50 .52 .47 .47 

44 .69 .71 .70 .67 

40 .72 .60 .62 .55 

190 .58 .57 .53 .52 

50 .55 .53 .51 .48 

70 .65 .64 .58 .63 

37 .58 .55 .52 .51 

33 .54 .54 .49 .43 

44 .76 .75 .54 .52 

25 .43 .43 .40 .37 I 

33 .55 .56 .54 

I 

.49 

43 .22 .22 .19 .18 

proximate the value of net transactions of used vehicles. 

51ncludes vehicle rentals, maintenance and repairs, and other 

vehicle charges. Estimates exclude aircraft rentals , vehicle 

licenses, vehicle inspection, and vehicle registration. 

sCE estimates exclude expenditures for other properties. 

NOTE: Sums may not equal totals , due to rounding. Expenditure 

estimates for home ownership, insurance, capital improvements, 

health care, finance charges , education. and cash contributions 

are excluded from the comparisons. 

SOURCE: PCE estimates are shown in U.S Department of Com· 

merce, Bureau of Economic Analysis . "National Income and Product Accounts ," Survey of Current Business , August 2000 . 

Detailed PCE estimates used in the compari!';ons are from unpublished annual PCE data received May 2001 . 

Consumer Expenditure Survey, /998- 99 37 
Text table 21 . Comparison of aggregate expenditures for food: Consumer Expenditure (CE) Diary Survey and Personal 

Consumption Expenditures (PC E), 1998-99 

Food category 

CE Diary survey 

(In billions) Ratio of CE to PCE 

Total ................................................................................... . 

Cereals and cereal products ....................................... . 

Bakery products .......................................................... . 

Beef, pork, other meat; poultry .................................... . 

Fish and seafood .................................. '" .................... . 

Eggs ............................................................................. . 

Fresh milk and cream ................................................. . 

Other dairy products ................................................... . 

Fresh fruits and vegetables ........................................ . 

Processed fruits and vegetables ............................... .. 

Sugar and other sweets ........................ '" ................... . 

Fats and oils ................................................................. . 

Nonalcoholic beverages .............................................. . 

Miscellaneous prepared foods .................................... . 

NOTE: Sums may not equal totals, due to rounding. 

SOURCE: U.S. Department of Labor, Bureau of Labor Statistics, 

Consumer Expenditure Survey, annual. PCE estimates are shown 

1998 

$291.6 

15.7 

29.8 

77.4 

1.5 

3.5 

12.9 

19.4 

31.5 

19.0 

11 .7 

8.2 

24.7 

41.5 

1999 

$311.8 

17.3 

31.3 

81.2 

11.5 

3.5 

13.2 

21.7 

32.6 

21 .5 

12.1 

9.1 

26.2 

45.5 

1998 

.68 

.68 

.67 

.79 

1.10 

.77 

.89 

.68 

.85 

1.11 

.38 

.95 

.40 

.66 

1999 

.70 

.72 

.67 

.80 

1.15 

.74 

.87 

.73 

.84 

1.19 

.37 

1.00 

.40 

.69 

in U.S. Department of Commerce, Bureau of Economic Analysis, 

"National Income and Product Accounts," Survey of Current Business, August 2000. Detailed PCE estimates used in the comparisons are from unpublished annual PCE data received May 2001. 

Text table 22. Comparison of aggregate expenditures for health care: Consumer Expenditure (CE) Survey 

and National Health ExpendItures, 1996-99 

Aggregate consumer expenditures Ratio of CE survey 

Consumer Expenditure Survey 

Expenditure category (In billions) 

1996 1997 1998 

Health care, total2 •••••••••••••••••••• $95.0 $96.6 $99.5 

Medical commodities, total .... 41 .5 42.0 43.1 

Drugs and supplies ........... 34.2 33.9 35.2 

Medical equipment ............ 7.4 8.0 7.9 

Medical services, total .......... 53.4 54.6 56.4 

Professional services ....... 44.5 45.4 47.5 

Physicians services ...... 14.8 14.1 14.8 

Dental services .............. 20.1 21 .5 22.8 

Other professional I services ............ ............ 9.5 9.8 9.9 

Hospital care ..................... 9.0 9.2 8.9 

I The NHE data used are out of pocket expenditures. 

~ Excludes health insurance premiums, nonprescription vitamins, 

nursing home care, rental of medical equipment, and repair of 

medical equipment. 

NOTE: Sums may not equal totals, due to rounding. CE catego38 Consumer Expenditure Survey, 1998-99 

to 

National Health Expenditures' 

1999 1996 1997 1998 1999 

$105.9 .70 .67 .65 .65 

47.5 .67 .65 .64 .65 

38.9 .63 .61 .60 .60 

8.7 .91 .95 .92 .97 

58.4 .73 .69 .66 .65 

51.7 .71 .66 .65 .67 

14.6 .45 .39 .38 .37 

24.2 .96 .93 .93 .95 

I 12.9 1.16 1.04 .92 1.13 

6.7 .86 .84 .76 .53 

ries have been grouped as needed to match NHE. 

SOURCE: The NHE data used to obtain the ratios are from the 

U.S. Department of Health and Human Services, Health Care 

Financing Administration, Office of the Actuary, National Health 

Statistics Group. The data is available online: http://www.hcfa.gov