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THURSDAY February 1, 2007

PERSONAL INCOME, CONSUMER SPENDING
GROWTH DECLINES
Real disposable personal income, the income available after taxes for consumer spending or saving, increased
0.2 percent in December after increasing 0.3 percent in November, according to the Bureau of Economic
Analysis. Real consumer spending increased 0.3 percent in December after increasing 0.5 percent in November.

Real Disposable Personal Income and
Real Consumer Spending

Percent change (monthly)

1.0

0.5

0.0

-0.5

-1.0

Dec Jan Feb Mar Apr May Jun
Real Disposable Personal Income

Jul

Aug Sep Oct Nov Dec

Real Consumer Spending

Personal Income
Personal income, a broad current-dollar measure that includes all sources of income, rose 0.5 percent in
December, after increasing 0.3 percent in November.
Wages and salaries, which account for more than half of personal income, increased 0.6 percent after increasing
0.4 percent in the previous month. In services industries, wages and salaries rose $32.4 billion after rising $18.4
billion.

Personal Consumption Expenditures (PCE) Prices
PCE prices rose 0.4 percent in December, after no change in November. Excluding food and energy, the index
increased 0.1 percent in December.

Real Consumer Spending
The growth in consumer spending in December was boosted by spending on motor vehicles and parts as well as
food.

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 March 1, 2007, the January estimates of Personal Income and Outlays will be released.
Contact: Ralph Stewart 202–606–2649

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