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MONDAY June 1, 2009

PERSONAL INCOME RISES IN APRIL

Personal income rose 0.5 percent in April. Wages and
salaries, the largest component of personal income, were flat
in April after falling 0.6 percent in March. In Jan., Feb. and
March—but not in April—wages were reduced by $20
billion to reflect smaller-than-expected bonuses.
Real disposable personal income (DPI), income adjusted
for inflation and taxes, increased 1.1 percent in April. Taxes
fell $64 billion after falling $34 billion. The American
Recovery and Reinvestment Act of 2009 reduced taxes and
boosted government benefit payments in April and March.
Excluding those effects, real DPI rose 0.7 percent in April
after falling 0.1 percent in March.
Real consumer spending, spending adjusted for price
changes, decreased 0.1 percent in April.

Average
growth,
last 12
months

March

April

Personal
Income

0.1 %

–0.2 %

0.5 %

Real DPI

0.3 %

0.1 %

1.1 %

–0.2 %

–0.3 %

–0.1%

0.0 %

0.0%

0.1 %

12-month
average

March

April

3.3%

4.5 %

5.7 %

Real
PCE

PCE
Prices

PCE prices increased 0.1 percent in April after remaining
flat in March. Excluding food and energy, prices rose 0.3
percent in April, after increasing 0.2 percent in March.

Personal saving as a percent of disposable income rose to
5.7 percent in April.

Personal
Saving
Rate

Real Disposable Personal Income and
Real Consumer Spending

Percent change (monthly)

1.5

1.0

Real Disposable Personal
Income

0.5

0.0

Real Consumer Spending

-0.5

-1.0

Jan

Feb

Mar

Apr

BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and
economic data for states, local areas, and industries—are available on the BEA Web site: www.bea.gov. E-mail alerts are also available.
NOTE: On June 26, 2009, the May estimates of Personal Income and Outlays will be released.
Contact: Ralph Stewart 202–606–2649

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