Rising Incomes, Provider Prices to Boost Nominal Spending on Professional Services

7/22/2022

Cleveland, OH, July 22, 2022 — US personal consumption expenditures (PCE) on professional services are forecast to rise 4.8% yearly in nominal terms through 2026, according to Professional Services: United States, a report recently released by Freedonia Focus Reports. Advances will primarily reflect inflation, though growth in employment and disposable personal income levels will also support gains. Constraints such as the intense competition in many of the segments – in addition to mature markets for many professional services – will limit advances.

PCE on professional services is expected to grow 5.5% in 2022. Portfolio management will be the largest source of growth among the discrete segments, at 8.2%. Portfolio management services will benefit from uncertainty in investment markets, inflation, and increased savings during the COVID-19 pandemic.

These and other key insights are featured in Professional Services: United States. This report forecasts to 2022 and 2026 US PCE on professional services in nominal US dollars. Expenditures are segmented by service type in terms of:

  • portfolio management and investment advice
  • legal
  • banking
  • securities trading
  • tax preparation and accounting
  • other services such as employment placement, printing, and private parcel mail

To illustrate historical trends, total PCE, the various segments, and price indexes by segment are provided in annual series from 2011 to 2021.

The scope of this report encompasses fees and service charges paid by consumers for professional services. Also included are the fees paid by third parties on behalf of consumers (e.g., fees for retirement plans paid by employers). Spending on interest is excluded. Also excluded is the value of financial services furnished without payment (e.g., free checking accounts).

PCE data include spending by nonprofit institutions serving households (e.g., the value of education services provided by nonprofit colleges or medical care provided by nonprofit hospitals). Consequently, the spending by such parties on portfolio management fees, banking, legal, and other professional services is included.

More information about the report is available at:

https://www.freedoniafocusreports.com/Professional-Services-United-States-FF95063/?progid=91541