A “consumer economy” is driven by consumer spending. Personal consumption accounts for about 70% of GDP in developed countries. Services account for 60% of total consumption, followed by 30% of non-Durable Goods like groceries and gasoline, and 10% Durable Goods that last 3 years or more. Economies can be ranked by absolute consumer spending, or by consumption’s % share of total GNP (Gross National Product). In 1960, US consumption accounted for 62% of GDP, rising to 71% by 2013.
