{"id":374211,"date":"2025-12-27T02:53:12","date_gmt":"2025-12-27T02:53:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/374211\/"},"modified":"2025-12-27T02:53:12","modified_gmt":"2025-12-27T02:53:12","slug":"how-much-does-health-care-contribute-to-gdp-mishtalk","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/374211\/","title":{"rendered":"How Much Does Health Care Contribute to GDP? \u2013 MishTalk"},"content":{"rendered":"<p>Health care was nearly half of PCE services in Q3. Here\u2019s a breakdown of services.<img loading=\"lazy\" data-recalc-dims=\"1\" decoding=\"async\" width=\"931\" height=\"557\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/12\/Real-PCE-Services-in-Billions-of-Dollars-2025-Q3-Advance.png\" alt=\"\" class=\"wp-image-76893\"  \/><\/p>\n<p>Real PCE Services in Billions of Dollars<\/p>\n<p>Total: 10,942<\/p>\n<p>Health Care: 2,963<\/p>\n<p>Housing and Utilities: 2,704<\/p>\n<p>Recreation: 632<\/p>\n<p>Transportation: 520<\/p>\n<p>Financial and Services: 1,181<\/p>\n<p>Food and Accommodation: 1,090<\/p>\n<p>Other: 1,479<\/p>\n<p>Health care is now the single largest PCE component. It passed Housing and Utilities in January of 2023.<\/p>\n<p>For contribution to GDP, we need to look at the change in real spending.<\/p>\n<p>Real PCE Services Change in Billions of Dollars <\/p>\n<p><img loading=\"lazy\" data-recalc-dims=\"1\" decoding=\"async\" width=\"942\" height=\"583\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/12\/Real-PCE-Services-Change-in-Billions-of-Dollars-2025-Q3-Advance.png\" alt=\"\" class=\"wp-image-76894\"  \/><\/p>\n<p>Health care is no consistently the fastest growing segment of PCE services.<\/p>\n<p>2025 Q3 Change in Services from 2025 Q2 <\/p>\n<p>Total: 100<\/p>\n<p>Health Care: 48<\/p>\n<p>Housing and Utilities: 2<\/p>\n<p>Recreation: 10<\/p>\n<p>Transportation: 4<\/p>\n<p>Financial and Services:7<\/p>\n<p>Food and Accommodation: 3<\/p>\n<p>Other: 25<\/p>\n<p>Health care was nearly half of the increase in PCE spending in the third quarter. That means it was nearly half of the services contribution to GDP.<\/p>\n<p>Real PCE Services Health Care Percentage Point Contribution<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"945\" height=\"605\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/12\/Real-PCE-Services-Health-Care-Percent-2025-Q3-Advance.png\" alt=\"\" class=\"wp-image-76895\"  \/><\/p>\n<p>In 2025 Q3 Heath Care was 48.2 percent of PCE Services spending. It provided 0.84 percentage points to GDP. <\/p>\n<p>These numbers will soar in 2026. I expect the nominal cost of health care to surge by 10 percent or more next year. <\/p>\n<p>Related Posts <\/p>\n<p>December 23, 2025: <a href=\"https:\/\/mishtalk.com\/economics\/real-gdp-increased-at-an-annual-rate-of-4-3-percent-real-gdi-2-4-percent\/\" rel=\"nofollow noopener\" target=\"_blank\">Real GDP Increased at an Annual rate of 4.3 Percent, Real GDI 2.4 Percent<\/a><\/p>\n<p>As measured by GDP, the economy is humming. As measured by many other things, it\u2019s not.<\/p>\n<p>December 23, 2025: <a href=\"https:\/\/mishtalk.com\/economics\/real-gdp-has-exceeded-gdi-for-12-straight-quarters-whats-going-on\/\" rel=\"nofollow noopener\" target=\"_blank\">Real GDP Has Exceeded GDI for 12 Straight Quarters, What\u2019s Going On?<\/a><\/p>\n<p>Let\u2019s discuss the statistical discrepancy.<\/p>\n<p>In case you missed it please see <a href=\"https:\/\/mishtalk.com\/economics\/health-care-inflation-bomb-makes-the-feds-2-percent-target-almost-impossible\/\" rel=\"nofollow noopener\" target=\"_blank\">Health Care Inflation Bomb Makes the Fed\u2019s 2 Percent Target Almost Impossible<\/a><\/p>\n<p>Let\u2019s discuss 2026 health care premiums and what they mean to the Fed\u2019s preferred measure of inflation.<\/p>\n","protected":false},"excerpt":{"rendered":"Health care was nearly half of PCE services in Q3. Here\u2019s a breakdown of services. Real PCE Services&hellip;\n","protected":false},"author":2,"featured_media":374212,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[64,63,137,500],"class_list":{"0":"post-374211","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-healthcare","8":"tag-au","9":"tag-australia","10":"tag-health","11":"tag-healthcare"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/374211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=374211"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/374211\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/374212"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=374211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=374211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=374211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}