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EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, THURSDAY, MARCH 1, 2007 James E. Rankin: Clinton P. McCully: (202) 606-5301 (202) 606-5302 (Personal Income) (Personal Outlays) BEA 07-07 PERSONAL INCOME AND OUTLAYS: JANUARY 2007 Personal income increased $108.1 billion, or 1.0 percent, and disposable personal income (DPI) increased $73.0 billion, or 0.8 percent, in January, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $51.9 billion, or 0.5 percent. In December, personal income increased $55.7 billion, or 0.5 percent, DPI increased $46.0 billion, or 0.5 percent, and PCE increased $69.4 billion, or 0.7 percent, based on revised estimates. Sept. Personal income, current dollars Disposable personal income: Current dollars Chained (2000) dollars Personal consumption expenditures: Current dollars Chained (2000) dollars 2006 Oct. Nov. Dec. (Percent change from preceding month) 2007 Jan. 0.5 0.3 0.3 0.5 1.0 0.5 0.8 0.2 0.5 0.3 0.3 0.5 0.1 0.8 0.5 0.0 0.3 0.3 0.5 0.4 0.4 0.7 0.4 0.5 0.3 This news release also presents revised estimates of wages and salaries, personal taxes, and contributions for government social insurance for July through September 2006 (third quarter). These estimates reflect newly available third-quarter wage and salary tabulations from the quarterly census of employment and wages from the Bureau of Labor Statistics. NOTE.--Monthly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified. Month-tomonth dollar changes are differences between these published estimates. Month-to-month percent changes are calculated from unrounded data and are not annualized. “Real” estimates are in chained (2000) dollars. This news release is available on BEA's Web site at www.bea.gov/bea/rels.htm. -more- -2- The January change in personal income was boosted by several special factors. Bonus payments and gains on the exercise of stock options boosted private wage and salary disbursements; pay raises for federal civilian and military personnel boosted government wage and salary disbursements; and cost-of-living adjustments to several federal transfer payment programs boosted current personal transfer receipts. The January change was reduced by annual adjustments to personal contributions for government social insurance and by lump-sum social security benefit payments that had boosted December personal income. Excluding these special factors, personal income increased $44.3 billion, or 0.4 percent, in January, after increasing $49.0 billion, or 0.4 percent, in December. These special factors are discussed more fully below. -more- -3- Compensation of employees Private wage and salary disbursements increased $64.2 billion in January, compared with an increase of $31.8 billion in December. The January change in private wages and salaries reflected an adjustment of $50.0 billion (at an annual rate) for unusually large bonus payments and the exercise of stock options. These types of irregular payments are not accounted for in the primary monthly source data for wages and salaries. The adjustment to January wages was based on data from state governments and from other sources. Goods-producing industries' payrolls decreased $0.2 billion in January, in contrast to an increase of $5.5 billion in December; manufacturing payrolls decreased $2.3 billion, in contrast to an increase of $2.7 billion. Services-producing industries' payrolls increased $64.5 billion, compared with an increase of $26.2 billion. Government wage and salary disbursements increased $7.3 billion in January, compared with an increase of $1.7 billion in December. Pay raises for civilian and military personnel added $4.6 billion to government payrolls in January. Employer contributions for employee pension and insurance funds increased $6.7 billion in January, compared with an increase of $4.1 billion in December. Employer contributions for government social insurance increased $7.9 billion in January, compared with an increase of $2.3 billion in December. The January increase reflected an increase in the tax rate paid by employers to state unemployment insurance funds and an increase in the social security taxable wage base (from $94,200 to $97,500); together, these changes added $3.0 billion in January. (Changes in employer contributions for government social insurance do not affect personal income, because employer contributions for government social insurance are also included in total contributions for government social insurance, which is a subtraction in the calculation of personal income.) Other personal income Proprietors' income increased $1.5 billion in January, compared with an increase of $1.2 billion in December. Farm proprietors' income increased $3.0 billion, in contrast to a decrease of $3.6 billion. Nonfarm proprietors' income decreased $1.5 billion, in contrast to an increase of $4.8 billion. Rental income of persons increased $2.5 billion in January, in contrast to a decrease of $1.7 billion in December. Personal income receipts on assets (personal interest income plus personal dividend income) increased $14.4 billion, compared with an increase of $3.1 billion. -more- -4- Personal current transfer receipts increased $22.7 billion in January, compared with an increase of $18.2 billion in December. The January change in current transfer receipts reflected 3.3-percent cost-of-living adjustments to social security benefits and to several other federal transfer payment programs; together, these changes added $21.2 billion to the January increase. The January change in current transfer receipts was reduced by lump-sum social security benefits payments, which had added $6.7 billion to December benefit payments; these benefit payments resulted from a recalculation of the earnings base underlying the benefits for recent retirees. Contributions for government social insurance -- a subtraction in calculating personal income -increased $19.1 billion in January, compared with an increase of $4.9 billion in December. The January increase reflected increases in both employer and personal contributions for government social insurance. As noted above, employer contributions were boosted $3.0 billion in January by increases in unemployment-insurance rates and in the social security taxable wage base. The January increase in personal contributions for government social insurance reflected an increase in the monthly premium paid by participants in the supplementary medical insurance program (Medicare B) and the increase in the social security taxable wage base; together, these changes added $5.3 billion to January personal contributions. Personal current taxes and disposable personal income Personal current taxes increased $35.1 billion in January, compared with an increase of $9.7 billion in December. Indexation provisions of current tax law reduced federal withheld income taxes by $4.0 billion in January. Federal net nonwithheld income taxes (payments of estimated taxes plus final settlements less refunds) boosted the January increase by $11.1 billion, based on federal budget projections for 2007. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $73.0 billion, or 0.8 percent, in January, compared with an increase of $46.0 billion, or 0.5 percent, in December. -more- -5- Personal outlays and personal saving Personal outlays -- PCE, personal interest payments, and personal current transfer payments increased $55.3 billion in January, compared with an increase of $70.4 billion in December. PCE increased $51.9 billion, compared with an increase of $69.4 billion. Personal saving -- DPI less personal outlays -- was a negative $116.4 billion in January, compared with a negative $134.2 billion in December. Personal saving as a percentage of disposable personal income was a negative 1.2 percent in January, compared with a negative 1.4 percent in December. Negative personal saving reflects personal outlays that exceed disposable personal income. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods. For more information, see the FAQs on “Personal Saving” on BEA’s Web site. For a comparison of personal saving in BEA’s national income and product accounts with personal saving in the Federal Reserve Board’s flow of funds accounts and data on changes in net worth (which help finance consumption), go to http://www.bea.gov/bea/dn/nipaweb/Nipa-Frb.asp. Real DPI and real PCE Real DPI -- DPI adjusted to remove price changes -- increased 0.5 percent in January, compared with an increase of 0.1 percent in December. Real PCE -- PCE adjusted to remove price changes -- increased 0.3 percent in January, compared with an increase of 0.4 percent in December. Purchases of durable goods increased 0.7 percent, compared with an increase of 0.8 percent. Purchases of motor vehicles and parts accounted for most of the January increase. Purchases of nondurable goods increased 0.1 percent in January, compared with an increase of 0.9 percent in December. Purchases of services increased 0.4 percent, compared with an increase of 0.1 percent. PCE prices -- The price index for PCE increased 0.2 percent in January, compared with an increase of 0.3 percent in December. Prices, excluding food and energy, increased 0.3 percent, compared with an increase of 0.1 percent. -more- -6- 2006 Personal Income and Outlays Personal income increased 6.3 percent in 2006 (that is, from the 2005 annual level to the 2006 annual level), compared with an increase of 5.2 percent in 2005. The acceleration in personal income growth was mostly accounted for by wage and salary disbursements. DPI increased 5.4 percent, compared with an increase of 4.1 percent. PCE increased 6.0 percent, compared with an increase of 6.5 percent. Real DPI increased 2.6 percent in 2006, compared with an increase of 1.2 percent in 2005. Real PCE increased 3.2 percent, compared with an increase of 3.5 percent. Revisions Estimates for personal income and DPI have been revised for July through December; estimates for PCE have been revised for October through December. Changes in personal income, currentdollar and chained (2000) dollar DPI, and current-dollar and chained (2000) dollar PCE for November and December -- revised and as published in last month's release -- are shown below. For July through December, the revisions to wages and salaries reflected the incorporation of the most recently available BLS tabulations of third-quarter private wages and salaries from the quarterly census of employment and wages. Wages and salaries were revised down for all six months. Revisions to personal current taxes and to contributions for government social insurance reflected the revisions to wages and salaries. Change from preceding month November Previous Revised (Billions of dollars) December Previous Revised (Percent) Previous Revised (Billions of dollars) Previous Revised (Percent) Personal Income: Current dollars...................... 32.4 35.9 0.3 0.3 60.6 55.7 0.5 0.5 Disposable personal income: Current dollars...................... Chained (2000) dollars......... 25.4 21.6 27.5 21.6 0.3 0.3 0.3 0.3 50.8 13.3 46.0 11.7 0.5 0.2 0.5 0.1 Personal consumption expenditures: Current dollars...................... Chained (2000) dollars......... 51.1 44.1 35.8 28.9 0.5 0.5 0.4 0.4 67.1 28.3 69.4 32.7 0.7 0.3 0.7 0.4 -more- -7- This release also includes revised estimates of population, per capita disposable personal income (DPI), and per capita real DPI. The revised population estimates reflect newly available estimates from the Census Bureau for April 2000 through January 2007. BEA population estimates are a mid-month average of Census Bureau data. The revised per capita estimates reflect the revisions to the population estimates. Estimates for the complete revision period are available on BEA’s Web site at www.bea.gov/bea/dn/nipaweb/SelectTable.asp?Selected=Y#S2. BEA’s national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA’s Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. * * * Next release -- Personal Income and Outlays for February will be released on March 30, 2007, at 8:30 A.M. EDT. -more- Table 1.—Personal Income and Its Disposition (Months) [Billions of dollars] Seasonally adjusted at annual rates 2006 Personal income ................................................................................................... Compensation of employees, received ......................................................... Wage and salary disbursements ............................................................... Private industries ....................................................................................... Goods-producing industries ................................................................... Manufacturing .................................................................................... Services-producing industries ............................................................... Trade, transportation, and utilities .................................................... Other services-producing industries ................................................. Government ................................................................................................ Supplements to wages and salaries ......................................................... Employer contributions for employee pension and insurance funds ....... Employer contributions for government social insurance ......................... Proprietors’ income with inventory valuation and capital consumption adjustments ................................................................................................... Farm ............................................................................................................... Nonfarm .......................................................................................................... Rental income of persons with capital consumption adjustment ............. Personal income receipts on assets ............................................................. Personal interest income ............................................................................... Personal dividend income .............................................................................. Personal current transfer receipts ................................................................. Government social benefits to persons ......................................................... Old-age, survivors, disability, and health insurance benefits ................... Government unemployment insurance benefits ....................................... Other .......................................................................................................... Other current transfer receipts, from business (net) .................................... Less: Contributions for government social insurance ............................... Less: Personal current taxes .............................................................................. Equals: Disposable personal income ................................................................ Less: Personal outlays ........................................................................................ Personal consumption expenditures .................................................................. Durable goods ................................................................................................ Nondurable goods .......................................................................................... Services .......................................................................................................... Personal interest payments 1 ............................................................................. Personal current transfer payments ................................................................... To government ............................................................................................... To the rest of the world (net) ........................................................................ Equals: Personal saving ...................................................................................... Personal saving as a percentage of disposable personal income ........... Addenda: Disposable personal income: Total, billions of chained (2000) dollars 2 ..................................................... Per capita: Current dollars ........................................................................................... Chained (2000) dollars .............................................................................. Population (midperiod, thousands) 3 .................................................................. 2007 June July r Aug. r Sep. r Oct. r Nov. r Dec. r Jan. p 10,842.2 7,434.7 5,985.7 4,976.4 1,174.2 731.2 3,802.2 992.6 2,809.6 1,009.2 1,449.0 990.1 458.9 10,892.5 7,467.9 6,011.6 4,997.0 1,172.2 730.5 3,824.8 995.2 2,829.6 1,014.6 1,456.3 995.6 460.7 10,937.1 7,480.0 6,019.0 4,998.5 1,171.3 729.3 3,827.2 993.9 2,833.3 1,020.5 1,461.1 1,000.2 460.9 10,988.7 7,519.8 6,052.3 5,025.8 1,171.1 727.4 3,854.7 997.8 2,857.0 1,026.5 1,467.5 1,004.5 463.0 11,025.4 7,558.5 6,083.9 5,055.0 1,177.6 731.4 3,877.4 1,000.2 2,877.2 1,028.9 1,474.6 1,009.5 465.2 11,061.3 7,589.5 6,109.0 5,078.0 1,178.5 730.1 3,899.5 1,006.4 2,893.1 1,031.0 1,480.5 1,013.6 466.8 11,117.0 7,629.3 6,142.5 5,109.8 1,184.0 732.8 3,925.7 1,007.6 2,918.1 1,032.7 1,486.8 1,017.7 469.1 11,225.1 7,715.5 6,214.0 5,174.0 1,183.8 730.5 3,990.2 1,010.5 2,979.7 1,040.0 1,501.4 1,024.4 477.0 1,010.7 14.6 996.1 68.2 1,670.2 1,035.6 634.6 1,597.8 1,562.6 935.8 27.0 599.9 35.2 939.4 1,367.5 9,474.6 9,621.2 9,270.5 1,063.5 2,732.0 5,475.0 224.2 126.5 77.9 48.7 –146.6 –1.5 1,009.9 17.1 992.9 73.4 1,676.7 1,035.7 641.0 1,608.0 1,572.6 931.4 27.3 613.8 35.4 943.4 1,360.8 9,531.8 9,696.0 9,338.9 1,085.2 2,755.9 5,497.8 229.9 127.2 78.4 48.8 –164.2 –1.7 1,017.2 21.5 995.7 78.1 1,683.5 1,035.8 647.7 1,622.5 1,587.0 938.9 27.3 620.7 35.5 944.2 1,361.0 9,576.1 9,716.0 9,352.7 1,068.9 2,761.1 5,522.6 235.5 127.8 79.0 48.8 –139.8 –1.5 1,017.4 26.4 991.0 83.4 1,690.6 1,035.9 654.6 1,625.5 1,589.8 939.7 27.3 622.8 35.7 948.0 1,365.6 9,623.0 9,718.1 9,348.5 1,072.3 2,726.2 5,550.0 241.2 128.3 79.5 48.8 –95.0 –1.0 1,023.7 28.4 995.3 81.4 1,693.6 1,032.0 661.6 1,621.5 1,585.6 941.6 27.0 617.1 35.9 953.4 1,378.6 9,646.8 9,747.3 9,375.1 1,074.0 2,711.6 5,589.5 242.0 130.2 79.8 50.4 –100.5 –1.0 1,025.2 28.6 996.6 80.8 1,697.0 1,028.1 668.8 1,625.5 1,589.4 945.8 27.3 616.4 36.1 956.7 1,387.0 9,674.3 9,784.1 9,410.9 1,080.6 2,720.6 5,609.7 242.7 130.5 80.1 50.4 –109.8 –1.1 1,026.4 25.0 1,001.4 79.1 1,700.1 1,024.2 675.9 1,643.7 1,607.6 964.8 27.0 615.8 36.1 961.6 1,396.7 9,720.3 9,854.5 9,480.3 1,084.6 2,766.0 5,629.6 243.4 130.8 80.3 50.4 –134.2 –1.4 1,027.9 28.0 999.9 81.6 1,714.5 1,032.3 682.2 1,666.4 1,630.4 967.2 27.3 635.8 36.1 980.7 1,431.8 9,793.3 9,909.8 9,532.2 1,090.6 2,773.6 5,668.0 246.6 131.0 80.6 50.4 –116.4 –1.2 8,252.8 8,277.6 8,294.2 8,361.4 8,400.8 8,422.4 8,434.1 8,480.1 31,665 27,582 299,271 31,823 27,635 299,528 31,943 27,667 299,788 32,071 27,867 300,051 32,123 27,974 300,306 32,189 28,024 300,545 32,317 28,041 300,776 32,535 28,172 301,009 p Preliminary r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates for the third quarter of 2006. 1. Consists of nonmortgage interest paid by households. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. 3. Population is the total population of the United States, including the Armed Forces overseas and the institutionalized population. The monthly estimate is the average of estimates for the first of the month and the first of the following month; the annual and quarterly estimates are averages of the monthly estimates. Table 2.—Personal Income and Its Disposition (Years and Quarters) [Billions of dollars] Seasonally adjusted at annual rates 2005 2006 r 2005 III Personal income ................................................................................................... Compensation of employees, received ......................................................... Wage and salary disbursements ............................................................... Private industries ....................................................................................... Goods-producing industries ................................................................... Manufacturing .................................................................................... Services-producing industries ............................................................... Trade, transportation, and utilities .................................................... Other services-producing industries ................................................. Government ................................................................................................ Supplements to wages and salaries ......................................................... Employer contributions for employee pension and insurance funds ....... Employer contributions for government social insurance ......................... Proprietors’ income with inventory valuation and capital consumption adjustments ................................................................................................... Farm ............................................................................................................... Nonfarm .......................................................................................................... Rental income of persons with capital consumption adjustment ............. Personal income receipts on assets ............................................................. Personal interest income ............................................................................... Personal dividend income .............................................................................. Personal current transfer receipts ................................................................. Government social benefits to persons ......................................................... Old-age, survivors, disability, and health insurance benefits ................... Government unemployment insurance benefits ....................................... Other .......................................................................................................... Other current transfer receipts, from business (net) .................................... Less: Contributions for government social insurance ............................... Less: Personal current taxes .............................................................................. Equals: Disposable personal income ................................................................ Less: Personal outlays ........................................................................................ Personal consumption expenditures .................................................................. Durable goods ................................................................................................ Nondurable goods .......................................................................................... Services .......................................................................................................... Personal interest payments 1 ............................................................................. Personal current transfer payments ................................................................... To government ............................................................................................... To the rest of the world (net) ........................................................................ Equals: Personal saving ...................................................................................... Personal saving as a percentage of disposable personal income ........... Addenda: Disposable personal income: Total, billions of chained (2000) dollars 2 ..................................................... Per capita: Current dollars ........................................................................................... Chained (2000) dollars .............................................................................. Population (midperiod, thousands) 3 .................................................................. 2006 IV I II III r IV r 10,239.2 7,030.3 5,664.8 4,687.1 1,101.3 704.7 3,585.8 937.2 2,648.5 977.7 1,365.5 933.2 432.3 10,884.0 7,476.9 6,022.6 5,008.7 1,175.5 734.0 3,833.3 993.7 2,839.6 1,013.9 1,454.3 992.7 461.5 10,262.7 7,093.6 5,715.2 4,734.6 1,113.9 709.7 3,620.7 945.5 2,675.2 980.6 1,378.4 942.1 436.3 10,483.7 7,184.4 5,787.0 4,798.9 1,124.9 715.0 3,673.9 954.9 2,719.0 988.1 1,397.4 956.1 441.3 10,721.4 7,400.3 5,970.1 4,972.0 1,177.3 742.8 3,794.7 983.6 2,811.0 998.1 1,430.3 971.6 458.7 10,807.3 7,425.5 5,980.9 4,975.0 1,173.0 732.8 3,802.0 990.8 2,811.2 1,005.9 1,444.5 985.7 458.9 10,939.4 7,489.3 6,027.6 5,007.1 1,171.5 729.1 3,835.6 995.6 2,840.0 1,020.5 1,461.6 1,000.1 461.5 11,067.9 7,592.4 6,111.8 5,080.9 1,180.1 731.4 3,900.9 1,004.7 2,896.1 1,030.9 1,480.6 1,013.6 467.0 970.7 30.2 940.4 72.8 1,519.4 945.0 574.4 1,526.6 1,480.9 844.9 31.3 604.6 45.7 880.6 1,203.1 9,036.1 9,070.9 8,742.4 1,033.1 2,539.3 5,170.0 209.4 119.2 72.0 47.1 –34.8 –.4 1,015.0 22.6 992.4 76.7 1,657.6 1,018.1 639.6 1,602.3 1,567.0 931.4 27.3 608.3 35.3 944.5 1,360.9 9,523.1 9,625.2 9,269.0 1,070.3 2,715.0 5,483.7 229.9 126.3 78.0 48.3 –102.1 –1.1 967.3 29.7 937.7 –11.5 1,532.7 951.2 581.5 1,569.0 1,489.2 848.5 30.2 610.4 79.8 888.5 1,215.0 9,047.7 9,180.3 8,847.3 1,057.3 2,584.9 5,205.1 214.6 118.5 72.7 45.8 –132.6 –1.5 996.8 28.7 968.1 81.5 1,580.2 981.7 598.5 1,539.8 1,500.8 854.6 31.6 614.5 39.0 898.9 1,247.6 9,236.1 9,264.5 8,927.8 1,019.6 2,613.5 5,294.7 214.9 121.8 74.2 47.6 –28.5 –.3 1,008.3 23.9 984.4 76.8 1,602.3 989.1 613.2 1,570.4 1,536.0 909.9 27.8 598.3 34.5 936.7 1,332.6 9,388.8 9,418.5 9,079.2 1,064.1 2,658.2 5,356.8 218.5 120.9 75.7 45.2 –29.7 –.3 1,011.9 17.5 994.3 71.4 1,647.7 1,019.2 628.5 1,589.7 1,554.7 928.1 27.0 599.6 35.0 938.8 1,361.0 9,446.2 9,577.0 9,228.1 1,061.8 2,721.4 5,444.9 222.9 126.0 77.3 48.7 –130.8 –1.4 1,014.8 21.7 993.2 78.3 1,683.6 1,035.8 647.8 1,618.6 1,583.1 936.7 27.3 619.1 35.5 945.2 1,362.5 9,577.0 9,710.0 9,346.7 1,075.5 2,747.7 5,523.5 235.5 127.8 79.0 48.8 –133.0 –1.4 1,025.1 27.4 997.8 80.5 1,696.9 1,028.1 668.8 1,630.2 1,594.2 950.7 27.1 616.4 36.0 957.2 1,387.4 9,680.5 9,795.3 9,422.1 1,079.8 2,732.7 5,609.6 242.7 130.5 80.0 50.4 –114.8 –1.2 8,104.6 8,312.9 8,074.1 8,183.3 8,276.8 8,245.4 8,311.0 8,419.1 30,473 27,332 296,524 31,805 27,763 299,424 30,473 27,194 296,907 31,029 27,492 297,660 31,470 27,743 298,338 31,590 27,574 299,025 31,946 27,723 299,789 32,210 28,013 300,543 r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates for the third quarter of 2006. 1. Consists of nonmortgage interest paid by households. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. 3. Population is the total population of the United States, including the Armed Forces overseas and the institutionalized population. The monthly estimate is the average of estimates for the first of the month and the first of the following month; the annual and quarterly estimates are averages of the monthly estimates. Table 3.—Personal Income and Its Disposition, Change from Preceding Period (Months) [Billions of dollars] Seasonally adjusted at annual rates 2006 June Personal income ................................................................................................... Compensation of employees, received ......................................................... Wage and salary disbursements ............................................................... Private industries ....................................................................................... Goods-producing industries ................................................................... Manufacturing .................................................................................... Services-producing industries ............................................................... Trade, transportation, and utilities .................................................... Other services-producing industries ................................................. Government ................................................................................................ Supplements to wages and salaries ......................................................... Employer contributions for employee pension and insurance funds ....... Employer contributions for government social insurance ......................... Proprietors’ income with inventory valuation and capital consumption adjustments ................................................................................................... Farm ............................................................................................................... Nonfarm .......................................................................................................... Rental income of persons with capital consumption adjustment ............. Personal income receipts on assets ............................................................. Personal interest income ............................................................................... Personal dividend income .............................................................................. Personal current transfer receipts ................................................................. Government social benefits to persons ......................................................... Old-age, survivors, disability, and health insurance benefits ................... Government unemployment insurance benefits ....................................... Other .......................................................................................................... Other current transfer receipts, from business (net) .................................... Less: Contributions for government social insurance ............................... Less: Personal current taxes .............................................................................. Equals: Disposable personal income ................................................................ Less: Personal outlays ........................................................................................ Personal consumption expenditures .................................................................. Durable goods ................................................................................................ Nondurable goods .......................................................................................... Services .......................................................................................................... Personal interest payments 1 ............................................................................. Personal current transfer payments ................................................................... To government ............................................................................................... To the rest of the world (net) ........................................................................ Equals: Personal saving ...................................................................................... Addendum: Real disposable personal income, billions of chained (2000) dollars 2 ............ p Preliminary r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates for the third quarter of 2006. 1. Consists of nonmortgage interest paid by households. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. July r Aug. r Sep. r 2007 Oct. r Nov. r Dec. r Jan. p 46.9 27.9 22.2 18.3 3.8 .3 14.5 5.5 9.0 3.8 5.7 4.5 1.2 50.3 33.2 25.9 20.6 –2.0 –.7 22.6 2.6 20.0 5.4 7.3 5.5 1.8 44.6 12.1 7.4 1.5 –.9 –1.2 2.4 –1.3 3.7 5.9 4.8 4.6 .2 51.6 39.8 33.3 27.3 –.2 –1.9 27.5 3.9 23.7 6.0 6.4 4.3 2.1 36.7 38.7 31.6 29.2 6.5 4.0 22.7 2.4 20.2 2.4 7.1 5.0 2.2 35.9 31.0 25.1 23.0 .9 –1.3 22.1 6.2 15.9 2.1 5.9 4.1 1.6 55.7 39.8 33.5 31.8 5.5 2.7 26.2 1.2 25.0 1.7 6.3 4.1 2.3 108.1 86.2 71.5 64.2 –.2 –2.3 64.5 2.9 61.6 7.3 14.6 6.7 7.9 –4.1 –2.9 –1.2 –3.6 22.9 16.4 6.4 6.7 6.5 7.9 0 –1.3 .2 2.8 9.4 37.4 33.7 31.9 5.6 3.7 22.6 1.3 .5 .6 0 3.7 –.8 2.5 –3.2 5.2 6.5 .1 6.4 10.2 10.0 –4.4 .3 13.9 .2 4.0 –6.7 57.2 74.8 68.4 21.7 23.9 22.8 5.7 .7 .5 .1 –17.6 7.3 4.4 2.8 4.7 6.8 .1 6.7 14.5 14.4 7.5 0 6.9 .1 .8 .2 44.3 20.0 13.8 –16.3 5.2 24.8 5.6 .6 .6 0 24.4 .2 4.9 –4.7 5.3 7.1 .1 6.9 3.0 2.8 .8 0 2.1 .2 3.8 4.6 46.9 2.1 –4.2 3.4 –34.9 27.4 5.7 .5 .5 0 44.8 6.3 2.0 4.3 –2.0 3.0 –3.9 7.0 –4.0 –4.2 1.9 –.3 –5.7 .2 5.4 13.0 23.8 29.2 26.6 1.7 –14.6 39.5 .8 1.9 .3 1.6 –5.5 1.5 .2 1.3 –.6 3.4 –3.9 7.2 4.0 3.8 4.2 .3 –.7 .2 3.3 8.4 27.5 36.8 35.8 6.6 9.0 20.2 .7 .3 .3 0 –9.3 1.2 –3.6 4.8 –1.7 3.1 –3.9 7.1 18.2 18.2 19.0 –.3 –.6 0 4.9 9.7 46.0 70.4 69.4 4.0 45.4 19.9 .7 .3 .2 0 –24.4 1.5 3.0 –1.5 2.5 14.4 8.1 6.3 22.7 22.8 2.4 .3 20.0 0 19.1 35.1 73.0 55.3 51.9 6.0 7.6 38.4 3.2 .2 .3 0 17.8 20.8 24.8 16.6 67.2 39.4 21.6 11.7 46.0 Table 4.—Personal Income and Its Disposition, Change from Preceding Period (Years and Quarters) [Billions of dollars] Seasonally adjusted at annual rates 2005 2006 r 2005 III Personal income ................................................................................................... Compensation of employees, received ......................................................... Wage and salary disbursements ............................................................... Private industries ....................................................................................... Goods-producing industries ................................................................... Manufacturing .................................................................................... Services-producing industries ............................................................... Trade, transportation, and utilities .................................................... Other services-producing industries ................................................. Government ................................................................................................ Supplements to wages and salaries ......................................................... Employer contributions for employee pension and insurance funds ....... Employer contributions for government social insurance ......................... Proprietors’ income with inventory valuation and capital consumption adjustments ................................................................................................... Farm ............................................................................................................... Nonfarm .......................................................................................................... Rental income of persons with capital consumption adjustment ............. Personal income receipts on assets ............................................................. Personal interest income ............................................................................... Personal dividend income .............................................................................. Personal current transfer receipts ................................................................. Government social benefits to persons ......................................................... Old-age, survivors, disability, and health insurance benefits ................... Government unemployment insurance benefits ....................................... Other .......................................................................................................... Other current transfer receipts, from business (net) .................................... Less: Contributions for government social insurance ............................... Less: Personal current taxes .............................................................................. Equals: Disposable personal income ................................................................ Less: Personal outlays ........................................................................................ Personal consumption expenditures .................................................................. Durable goods ................................................................................................ Nondurable goods .......................................................................................... Services .......................................................................................................... Personal interest payments 1 ............................................................................. Personal current transfer payments ................................................................... To government ............................................................................................... To the rest of the world (net) ........................................................................ Equals: Personal saving ...................................................................................... Addendum: Real disposable personal income, billions of chained (2000) dollars 2 ............ 2006 IV I II III r IV r 507.8 365.0 272.7 236.8 50.5 16.7 186.3 38.0 148.2 35.9 92.3 67.1 25.2 644.8 446.6 357.8 321.6 74.2 29.3 247.5 56.5 191.1 36.2 88.8 59.5 29.2 101.2 139.9 113.9 107.0 26.4 12.4 80.7 15.1 65.5 6.9 26.0 17.4 8.6 221.0 90.8 71.8 64.3 11.0 5.3 53.2 9.4 43.8 7.5 19.0 14.0 5.0 237.7 215.9 183.1 173.1 52.4 27.8 120.8 28.7 92.0 10.0 32.9 15.5 17.4 85.9 25.2 10.8 3.0 –4.3 –10.0 7.3 7.2 .2 7.8 14.2 14.1 .2 132.1 63.8 46.7 32.1 –1.5 –3.7 33.6 4.8 28.8 14.6 17.1 14.4 2.6 128.5 103.1 84.2 73.8 8.6 2.3 65.3 9.1 56.1 10.4 19.0 13.5 5.5 59.6 –6.0 65.5 –54.2 91.5 54.2 37.3 100.1 82.5 53.5 –4.7 33.6 17.6 54.2 153.3 354.5 563.7 530.9 46.8 194.1 289.9 23.4 9.5 5.2 4.2 –209.1 44.3 –7.6 52.0 3.9 138.2 73.1 65.2 75.7 86.1 86.5 –4.0 3.7 –10.4 63.9 157.8 487.0 554.3 526.6 37.2 175.7 313.7 20.5 7.1 6.0 1.2 –67.3 1.5 1.0 .6 –114.3 32.2 16.4 15.8 58.9 12.0 4.1 –.5 8.3 46.8 17.0 23.2 78.0 179.9 172.7 15.0 76.3 81.4 6.1 1.2 1.4 –.2 –101.8 29.5 –1.0 30.4 93.0 47.5 30.5 17.0 –29.2 11.6 6.1 1.4 4.1 –40.8 10.4 32.6 188.4 84.2 80.5 –37.7 28.6 89.6 .3 3.3 1.5 1.8 104.1 11.5 –4.8 16.3 –4.7 22.1 7.4 14.7 30.6 35.2 55.3 –3.8 –16.2 –4.5 37.8 85.0 152.7 154.0 151.4 44.5 44.7 62.1 3.6 –.9 1.5 –2.4 –1.2 3.6 –6.4 9.9 –5.4 45.4 30.1 15.3 19.3 18.7 18.2 –.8 1.3 .5 2.1 28.4 57.4 158.5 148.9 –2.3 63.2 88.1 4.4 5.1 1.6 3.5 –101.1 2.9 4.2 –1.1 6.9 35.9 16.6 19.3 28.9 28.4 8.6 .3 19.5 .5 6.4 1.5 130.8 133.0 118.6 13.7 26.3 78.6 12.6 1.8 1.7 .1 –2.2 10.3 5.7 4.6 2.2 13.3 –7.7 21.0 11.6 11.1 14.0 –.2 –2.7 .5 12.0 24.9 103.5 85.3 75.4 4.3 –15.0 86.1 7.2 2.7 1.0 1.6 18.2 93.8 208.3 –11.7 109.2 93.5 –31.4 65.6 108.1 r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates for the third quarter of 2006. 1. Consists of nonmortgage interest paid by households. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. Table 5.—Personal Income and Its Disposition, Percent Change from Preceding Period (Months) Seasonally adjusted at monthly rates 2006 June Aug. r July r 2007 Sep. r Oct. r Nov. r Dec. r Jan. p Based on current-dollar measures Personal income ................................................................................................... Compensation of employees, received .............................................................. Wage and salary disbursements ................................................................... Supplements to wages and salaries ............................................................. Proprietors’ income with inventory valuation and capital consumption adjustments .................................................................................................... Rental income of persons with capital consumption adjustment ..................... Personal income receipts on assets .................................................................. Personal interest income ............................................................................... Personal dividend income .............................................................................. Personal current transfer receipts ...................................................................... Less: Contributions for government social insurance ....................................... Less: Personal current taxes .............................................................................. Equals: Disposable personal income ................................................................ Addenda: Personal consumption expenditures .................................................................. Durable goods ................................................................................................ Nondurable goods .......................................................................................... Services .......................................................................................................... 0.4 .4 .4 .4 0.5 .4 .4 .5 0.4 .2 .1 .3 0.5 .5 .6 .4 0.3 .5 .5 .5 0.3 .4 .4 .4 0.5 .5 .5 .4 1.0 1.1 1.2 1.0 –.4 –5.0 1.4 1.6 1.0 .4 .3 .7 .4 –.1 7.6 .4 0 1.0 .6 .4 –.5 .6 .7 6.4 .4 0 1.1 .9 .1 0 .5 0 6.8 .4 0 1.1 .2 .4 .3 .5 .6 –2.4 .2 –.4 1.1 –.2 .6 .9 .2 .1 –.8 .2 –.4 1.1 .2 .3 .6 .3 .1 –2.1 .2 –.4 1.1 1.1 .5 .7 .5 .1 3.1 .8 .8 .9 1.4 2.0 2.5 .8 .3 .5 .1 .4 .7 2.0 .9 .4 .1 –1.5 .2 .5 0 .3 –1.3 .5 .3 .2 –.5 .7 .4 .6 .3 .4 .7 .4 1.7 .4 .5 .5 .3 .7 .3 .1 .5 Based on chained (2000) dollar measures Real disposable personal income ...................................................................... .3 .3 .2 .8 .5 Preliminary r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates for the third quarter of 2006. p Table 6.—Personal Income and Its Disposition, Percent Change from Preceding Period (Years and Quarters) Seasonally adjusted at annual rates 2005 2006 r 2005 III 2006 IV I II III r IV r Based on current-dollar measures Personal income ................................................................................................... Compensation of employees, received .............................................................. Wage and salary disbursements ................................................................... Supplements to wages and salaries ............................................................. Proprietors’ income with inventory valuation and capital consumption adjustments .................................................................................................... Rental income of persons with capital consumption adjustment ..................... Personal income receipts on assets .................................................................. Personal interest income ............................................................................... Personal dividend income .............................................................................. Personal current transfer receipts ...................................................................... Less: Contributions for government social insurance ....................................... Less: Personal current taxes .............................................................................. Equals: Disposable personal income ................................................................ Addenda: Personal consumption expenditures .................................................................. Durable goods ................................................................................................ Nondurable goods .......................................................................................... Services .......................................................................................................... 5.2 5.5 5.1 7.3 6.5 –42.7 6.4 6.1 7.0 7.0 6.6 14.6 4.1 6.5 4.7 8.3 5.9 6.3 6.4 6.3 6.5 8.9 5.2 5.1 5.6 9.4 12.6 13.3 9.7 3.2 1.4 .7 4.1 5.0 3.5 3.2 4.8 4.8 5.6 5.7 5.3 4.6 .6 12.7 5.4 .................. .................. 9.1 8.9 13.0 7.7 7.2 13.5 11.3 11.7 12.2 5.0 16.5 –7.3 7.3 8.0 4.8 13.1 8.0 11.2 5.4 3.5 8.6 4.7 –21.2 5.7 3.0 10.2 8.2 17.9 30.2 6.8 1.4 –25.2 11.8 12.7 10.4 5.0 .9 8.8 2.5 1.2 44.6 9.0 6.7 12.8 7.5 2.7 .4 5.7 4.1 11.5 3.2 –2.9 13.6 2.9 5.2 7.5 4.4 7.0 18.6 7.0 4.8 6.7 –.9 9.9 6.7 5.2 5.3 3.9 5.9 3.3 1.6 –2.2 6.4 –1.5 3.2 5.3 6.0 3.6 6.9 6.1 4.0 8.3 8.4 7.9 8.2 5.9 12.7 6.5 3.7 –13.5 4.5 7.1 Based on chained (2000) dollar measures Real disposable personal income ...................................................................... r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates for the third quarter of 2006. 1.2 2.6 –.6 5.5 4.6 Table 7.—Real Personal Consumption Expenditures by Major Type of Product (Months) 2006 June July Aug. 2007 Sep. Oct. r Nov. r Dec. r Jan. p Billions of chained (2000) dollars, seasonally adjusted at annual rates Personal consumption expenditures ................................................. Durable goods .................................................................................... Nondurable goods .............................................................................. Services .............................................................................................. 8,075.0 1,194.2 2,353.9 4,548.9 8,110.1 1,218.0 2,360.9 4,558.1 8,100.7 1,199.0 2,357.4 4,566.4 8,122.8 1,209.5 2,362.1 4,575.4 8,164.2 1,211.1 2,377.3 4,598.8 8,193.1 1,222.6 2,392.4 4,603.7 8,225.8 1,231.9 2,414.0 4,607.5 8,254.0 1,240.2 2,416.4 4,625.8 Change from preceding period in billions of chained (2000) dollars, seasonally adjusted at annual rates Personal consumption expenditures ................................................. Durable goods .................................................................................... Nondurable goods .............................................................................. Services .............................................................................................. 16.3 9.3 1.8 6.8 35.1 23.8 7.0 9.2 –9.4 –19.0 –3.5 8.3 22.1 10.5 4.7 9.0 41.4 1.6 15.2 23.4 28.9 11.5 15.1 4.9 32.7 9.3 21.6 3.8 28.2 8.3 2.4 18.3 Percent change from preceding period in chained (2000) dollars, seasonally adjusted at monthly rates Personal consumption expenditures ................................................. Durable goods .................................................................................... Nondurable goods .............................................................................. Services .............................................................................................. p r .2 .8 .1 .1 .4 2.0 .3 .2 –.1 –1.6 –.1 .2 .3 .9 .2 .2 .5 .1 .6 .5 .4 .9 .6 .1 .4 .8 .9 .1 .3 .7 .1 .4 Preliminary Revised Table 8.—Real Personal Consumption Expenditures by Major Type of Product (Years and Quarters) Seasonally adjusted at annual rates 2005 2006 r 2005 III 2006 IV I II III IV r 8,055.0 1,190.3 2,351.1 4,535.4 8,111.2 1,208.8 2,360.1 4,566.6 8,194.4 1,221.9 2,394.6 4,603.3 Billions of chained (2000) dollars Personal consumption expenditures ................................................. Durable goods .................................................................................... Nondurable goods .............................................................................. Services .............................................................................................. 7,841.2 1,145.3 2,276.8 4,436.6 8,091.1 1,202.9 2,362.1 4,550.0 7,895.3 1,175.9 2,287.6 4,454.5 7,910.2 1,137.9 2,309.6 4,476.7 8,003.8 1,190.5 2,342.8 4,494.5 Change from preceding period in billions of chained (2000) dollars Personal consumption expenditures ................................................. Durable goods .................................................................................... Nondurable goods .............................................................................. Services .............................................................................................. 264.1 59.6 97.6 112.7 249.9 57.6 85.3 113.4 75.5 25.1 19.2 34.5 14.9 –38.0 22.0 22.2 93.6 52.6 33.2 17.8 51.2 –.2 8.3 40.9 56.2 18.5 9.0 31.2 83.2 13.1 34.5 36.7 2.8 6.4 1.5 2.8 4.2 4.4 6.0 3.2 Percent change from preceding period in chained (2000) dollars Personal consumption expenditures ................................................. Durable goods .................................................................................... Nondurable goods .............................................................................. Services .............................................................................................. r Revised 3.5 5.5 4.5 2.6 3.2 5.0 3.7 2.6 3.9 9.0 3.4 3.2 .8 –12.3 3.9 2.0 4.8 19.8 5.9 1.6 2.6 –.1 1.4 3.7 Table 9.—Price Indexes for Personal Consumption Expenditures: Level and Percent Change From Preceding Period (Months) 2006 June July Aug. 2007 Sep. Oct. r Nov. r Dec. r Jan. p Chain-type price indexes (2000=100), seasonally adjusted Personal consumption expenditures (PCE) ...................................................... Durable goods .................................................................................................... Nondurable goods .............................................................................................. Services .............................................................................................................. Addenda: PCE excluding food and energy ........................................................................ Market-based PCE 1 ........................................................................................... Market-based PCE excluding food and energy 1 .............................................. 114.815 89.049 116.082 120.368 115.160 89.096 116.749 120.625 115.465 89.145 117.143 120.948 115.098 88.659 115.434 121.308 114.842 88.677 114.082 121.551 114.873 88.383 113.741 121.862 115.260 88.038 114.599 122.194 115.496 87.931 114.801 122.539 111.963 113.513 109.745 112.076 113.852 109.803 112.369 114.131 110.062 112.565 113.652 110.233 112.773 113.275 110.383 112.843 113.297 110.448 112.986 113.700 110.564 113.273 113.898 110.811 Percent change from preceding period in price indexes, seasonally adjusted at monthly rates PCE ......................................................................................................................... Durable goods .................................................................................................... Nondurable goods .............................................................................................. Services .............................................................................................................. Addenda: PCE excluding food and energy ........................................................................ Market-based PCE 1 ........................................................................................... Market-based PCE excluding food and energy 1 .............................................. .1 –.3 .1 .3 .3 .1 .6 .2 .3 .1 .3 .3 –.3 –.5 –1.5 .3 –.2 0 –1.2 .2 0 –.3 –.3 .3 .3 –.4 .8 .3 .2 –.1 .2 .3 .2 .1 .2 .1 .3 .1 .3 .2 .2 .2 –.4 .2 .2 –.3 .1 .1 0 .1 .1 .4 .1 .3 .2 .2 Preliminary r Revised 1. This index is a supplemental measure that is based on household expenditures for which there are observable price measures. It excludes most implicit prices (for example, the services furnished without payment by financial intermediaries) and the expenses of nonprofit institutions. p Table 10.—Real Disposable Personal Income and Real Personal Consumption Expenditures: Percent Change From Month One Year Ago 2006 June Disposable personal income ............................................................................... Personal consumption expenditures .................................................................. Durable goods .................................................................................................... Nondurable goods .............................................................................................. Services .............................................................................................................. July r 1.7 2.7 2.0 3.4 2.5 Aug. r 1.5 2.3 –1.6 3.5 2.5 2007 Sep. r 4.4 2.7 3.3 3.0 2.4 2.9 3.2 7.1 3.0 2.6 Oct. r 3.1 3.7 9.1 2.8 3.1 Nov. r Dec. r 2.9 3.6 7.0 3.8 2.8 Jan. p 2.6 3.5 6.0 4.5 2.6 2.7 3.5 3.8 3.1 3.6 p Preliminary r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates for the third quarter of 2006. Table 11.—Price Indexes for Personal Consumption Expenditures: Percent Change From Month One Year Ago 2006 June Personal consumption expenditures (PCE) ...................................................... Durable goods .................................................................................................... Nondurable goods .............................................................................................. Services .............................................................................................................. Addenda: PCE excluding food and energy ........................................................................ Market-based PCE 1 ........................................................................................... Market-based PCE excluding food and energy 1 .............................................. Preliminary Revised 1. This index is a supplemental measure that is based on household expenditures for which there are observable price measures. It excludes most implicit prices (for example, the services furnished without payment by financial intermediaries) and the expenses of nonprofit institutions. p r July Aug. 2007 Oct. r Sep. Nov. r Dec. r Jan. p 3.5 –1.5 5.3 3.6 3.4 –1.1 4.8 3.6 3.2 –.7 4.0 3.6 1.9 –1.3 .3 3.4 1.5 –1.3 –.5 3.0 1.9 –1.3 1.1 2.9 2.3 –1.6 2.1 3.1 2.0 –1.8 1.3 3.1 2.3 3.4 2.0 2.3 3.3 1.9 2.4 3.1 2.1 2.4 1.6 2.1 2.3 1.1 2.0 2.2 1.6 1.9 2.2 2.0 1.9 2.3 1.7 2.0