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EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, FRIDAY, FEBRUARY 29, 2008 James E. Rankin: Michael Armah: (202) 606-5301 (202) 606-5302 (Personal Income) (Personal Outlays) BEA 08-07 PERSONAL INCOME AND OUTLAYS: JANUARY 2008 Personal income increased $32.2 billion, or 0.3 percent, and disposable personal income (DPI) increased $46.6 billion, or 0.4 percent, in January, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $39.9 billion, or 0.4 percent. In December, personal income increased $54.0 billion, or 0.5 percent, DPI increased $46.0 billion, or 0.4 percent, and PCE increased $32.0 billion, or 0.3 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 2007 Oct. Nov. Dec. (Percent change from preceding month) 2008 Jan. 0.4 0.2 0.3 0.5 0.3 0.4 0.1 0.2 -0.1 0.3 -0.4 0.4 0.1 0.4 0.1 0.5 0.2 0.3 0.0 0.9 0.2 0.3 0.0 0.4 0.0 This news release also presents revised estimates of wages and salaries, personal taxes, and contributions for government social insurance for July through September 2007 (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 personal current transfer receipts. The January change was reduced by a decrease in Medicare part D prescription drug benefit payments, annual adjustments to personal contributions for government social insurance (a subtraction in calculating personal income), and by lump-sum social security benefit payments that had boosted December personal income. Excluding these special factors, personal income increased $27.4 billion, or 0.2 percent, in January, after increasing $47.0 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 $23.1 billion in January, compared with an increase of $23.2 billion in December. The January change in private wages and salaries was boosted by an adjustment of $15.0 billion (at an annual rate) for large bonus payments. This type of irregular payment is 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 increased $0.5 billion in January, in contrast to a decrease of $1.2 billion in December; manufacturing payrolls increased $0.3 billion, in contrast to a decrease of $0.4 billion. Services-producing industries' payrolls increased $22.5 billion, compared with an increase of $24.3 billion. Government wage and salary disbursements increased $9.4 billion in January, compared with an increase of $3.4 billion in December. Pay raises for civilian and military personnel added $7.2 billion to government payrolls in January. Employer contributions for employee pension and insurance funds increased $6.1 billion in January, compared with an increase of $3.4 billion in December. Employer contributions for government social insurance increased $6.2 billion in January, compared with an increase of $1.5 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 $97,500 to $102,000); together, these changes added $4.0 billion to the January increase. (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 $7.9 billion in January, in contrast to a decrease of $2.4 billion in December. Farm proprietors' income increased $0.3 billion, compared with an increase of $2.1 billion. Nonfarm proprietors' income increased $7.7 billion, in contrast to a decrease of $4.7 billion. Rental income of persons decreased $2.6 billion in January, in contrast to an increase of $2.3 billion in December. Personal income receipts on assets (personal interest income plus personal dividend income) increased $3.7 billion, compared with an increase of $3.1 billion. -more- -4- Personal current transfer receipts decreased $7.3 billion in January, in contrast to an increase of $22.7 billion in December. The January change primarily reflects a decrease in federal Medicare part D prescription drug payments to recover overpayments that were made in 2006. The January change in current transfer receipts was also reduced by lump-sum social security benefits payments, which had added $7.0 billion to December benefit payments; these benefit payments resulted from a recalculation of the earnings base underlying the benefits for recent retirees. The January change in current transfer receipts was boosted by 2.3-percent cost-of-living adjustments to social security benefits and to several other federal transfer payment programs; together, these changes added $15.5 billion to the January increase. Contributions for government social insurance -- a subtraction in calculating personal income -increased $14.2 billion in January, compared with an increase of $3.3 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 $4.0 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 premiums 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 $5.0 billion to the January increase. Personal current taxes and disposable personal income Personal current taxes decreased $14.4 billion in January, in contrast to an increase of $8.0 billion in December. Federal net nonwithheld income taxes (payments of estimated taxes plus final settlements less refunds) reduced the January change by $23.2 billion, based on federal budget projections of lower final settlements and higher refunds for 2008. Indexation provisions of current tax law reduced federal withheld income taxes by $4.1 billion in January. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $46.6 billion, or 0.4 percent, in January, compared with an increase of $46.0 billion, or 0.4 percent, in December. -more- -5- Personal outlays and personal saving Personal outlays -- PCE, personal interest payments, and personal current transfer payments increased $44.6 billion in January, compared with an increase of $28.3 billion in December. PCE increased $39.9 billion, compared with an increase of $32.0 billion. Personal saving -- DPI less personal outlays -- was a negative $6.2 billion in January, compared with a negative $8.2 billion in December. Personal saving as a percentage of disposable personal income was a negative 0.1 percent in January, the same percentage as 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 0.1 percent in January, the same increase as in December. Real PCE -- PCE adjusted to remove price changes -- increased less than 0.1 percent in January, the same increase as in December. Purchases of durable goods decreased 1.3 percent, compared with a decrease of 0.6 percent. Purchases of motor vehicles and parts accounted for most of the January decrease. Purchases of nondurable goods decreased 0.2 percent in January, the same decrease as in December. Purchases of services increased 0.4 percent in January, compared with an increase of 0.2 percent in December. PCE prices -- The price index for PCE increased 0.4 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 0.2 percent. -more- -6- 2007 Personal Income and Outlays Personal income increased 6.1 percent in 2007 (that is, from the 2006 annual level to the 2007 annual level), compared with an increase of 6.6 percent in 2006. DPI increased 5.7 percent, compared with an increase of 5.9 percent. PCE increased 5.5 percent, compared with an increase of 5.9 percent. Real DPI increased 3.0 percent in 2007, compared with an increase of 3.1 percent in 2006. Real PCE increased 2.9 percent, compared with an increase of 3.1 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. 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...................... 47.6 33.7 0.4 0.3 55.1 54.0 0.5 0.5 Disposable personal income: Current dollars...................... Chained (2000) dollars......... 37.6 -17.1 25.7 -33.8 0.4 -0.2 0.3 -0.4 47.5 18.3 46.0 11.4 0.5 0.2 0.4 0.1 94.6 33.0 86.6 19.7 1.0 0.4 0.9 0.2 23.5 -0.9 32.0 0.7 0.2 0.0 0.3 0.0 Personal consumption expenditures: Current dollars...................... Chained (2000) dollars......... -more- -7- 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 -- March 28, 2008 at 8:30 A.M. EDT for Personal Income and Outlays for February. -more- Table 1.—Personal Income and Its Disposition (Months) [Billions of dollars] Seasonally adjusted at annual rates 2007 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 .................................................................. 2008 June July r Aug. r Sep. r Oct. r Nov. r Dec. r Jan. p 11,626.5 7,832.3 6,344.2 5,279.4 1,216.1 756.0 4,063.3 1,042.9 3,020.4 1,064.7 1,488.1 1,014.5 473.6 11,683.7 7,853.7 6,358.6 5,290.8 1,215.8 755.1 4,075.0 1,031.9 3,043.2 1,067.7 1,495.1 1,019.2 476.0 11,735.9 7,876.4 6,376.8 5,303.1 1,217.1 754.9 4,086.0 1,031.3 3,054.7 1,073.7 1,499.6 1,022.8 476.8 11,785.5 7,918.1 6,412.9 5,335.7 1,219.6 754.2 4,116.0 1,036.9 3,079.1 1,077.2 1,505.2 1,026.2 479.0 11,813.0 7,927.4 6,417.6 5,336.7 1,216.9 752.2 4,119.8 1,036.1 3,083.7 1,080.9 1,509.8 1,030.7 479.0 11,846.7 7,958.9 6,444.1 5,359.8 1,221.1 755.3 4,138.8 1,038.0 3,100.8 1,084.3 1,514.8 1,034.3 480.6 11,900.7 7,990.6 6,470.8 5,383.0 1,219.9 754.9 4,163.1 1,043.4 3,119.7 1,087.7 1,519.8 1,037.7 482.1 11,932.9 8,035.2 6,503.1 5,406.1 1,220.4 755.2 4,185.6 1,046.4 3,139.3 1,097.1 1,532.0 1,043.8 488.3 1,041.1 34.4 1,006.7 66.5 1,941.5 1,151.8 789.7 1,720.4 1,692.5 1,027.3 31.5 633.7 27.9 975.2 1,486.1 10,140.4 10,112.0 9,705.6 1,068.6 2,835.4 5,801.5 270.1 136.4 85.9 50.5 28.4 .3 1,051.3 36.2 1,015.1 66.9 1,959.0 1,161.5 797.5 1,733.2 1,705.4 1,027.6 31.5 646.2 27.9 980.4 1,484.3 10,199.4 10,153.7 9,742.0 1,063.4 2,854.3 5,824.3 272.9 138.7 86.5 52.2 45.7 .4 1,050.7 38.7 1,012.0 68.3 1,976.3 1,171.1 805.1 1,746.6 1,718.6 1,038.7 32.1 647.7 28.0 982.3 1,488.7 10,247.2 10,198.3 9,783.1 1,085.8 2,830.6 5,866.7 275.8 139.3 87.1 52.2 48.9 .5 1,043.9 41.0 1,002.9 70.1 1,993.2 1,180.8 812.4 1,747.1 1,719.0 1,037.4 31.5 650.2 28.0 986.9 1,496.3 10,289.2 10,250.6 9,832.0 1,095.7 2,854.0 5,882.3 278.7 140.0 87.8 52.2 38.5 .4 1,050.1 42.2 1,008.0 72.4 1,996.4 1,176.9 819.5 1,754.1 1,726.0 1,036.1 31.5 658.3 28.1 987.4 1,504.2 10,308.8 10,277.5 9,862.3 1,092.8 2,868.5 5,901.1 274.6 140.6 88.1 52.5 31.3 .3 1,058.5 43.9 1,014.7 74.7 1,999.7 1,173.0 826.6 1,745.7 1,717.5 1,027.2 32.3 658.1 28.1 990.8 1,512.2 10,334.5 10,360.4 9,948.9 1,083.0 2,919.9 5,946.1 270.5 141.0 88.5 52.5 –25.9 –.3 1,056.1 46.0 1,010.0 77.0 2,002.8 1,169.1 833.7 1,768.4 1,740.3 1,045.2 33.3 661.7 28.2 994.1 1,520.2 10,380.5 10,388.7 9,980.9 1,074.0 2,928.9 5,978.0 266.4 141.4 88.9 52.5 –8.2 –.1 1,064.0 46.3 1,017.7 74.4 2,006.5 1,168.4 838.1 1,761.1 1,733.0 1,032.5 33.4 667.0 28.1 1,008.3 1,505.8 10,427.1 10,433.3 10,020.8 1,060.8 2,943.3 6,016.7 270.8 141.7 89.3 52.5 –6.2 –.1 8,619.9 8,660.3 8,702.5 8,713.5 8,705.0 8,671.2 8,682.6 8,689.7 33,587 28,551 301,914 33,753 28,660 302,178 33,880 28,773 302,450 33,988 28,783 302,728 34,024 28,730 302,989 34,082 28,596 303,228 34,207 28,612 303,457 34,337 28,615 303,672 p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third quarter of 2007. 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 2006 2007 r 2006 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 .................................................................. 2007 IV I II III r IV r 10,983.4 7,440.8 6,018.2 4,997.6 1,166.8 731.0 3,830.8 985.1 2,845.7 1,020.6 1,422.6 970.7 451.8 11,658.8 7,852.1 6,360.0 5,292.3 1,214.6 754.6 4,077.8 1,031.5 3,046.2 1,067.7 1,492.1 1,016.8 475.3 11,030.9 7,442.5 6,015.8 4,988.8 1,158.5 724.3 3,830.3 985.8 2,844.5 1,027.0 1,426.7 975.4 451.3 11,200.2 7,599.9 6,153.0 5,115.7 1,191.4 743.3 3,924.4 1,002.2 2,922.2 1,037.2 1,446.9 986.7 460.2 11,469.2 7,764.9 6,294.4 5,242.7 1,208.9 755.4 4,033.9 1,020.0 3,013.8 1,051.7 1,470.5 999.2 471.3 11,577.3 7,801.9 6,318.9 5,256.9 1,212.6 754.1 4,044.3 1,033.7 3,010.6 1,061.9 1,483.0 1,010.9 472.1 11,735.0 7,882.7 6,382.7 5,309.8 1,217.5 754.7 4,092.3 1,033.3 3,059.0 1,072.9 1,500.0 1,022.7 477.3 11,853.5 7,959.0 6,444.2 5,359.9 1,219.3 754.1 4,140.5 1,039.1 3,101.4 1,084.3 1,514.8 1,034.2 480.6 1,006.7 19.4 987.4 54.5 1,796.5 1,100.2 696.3 1,612.5 1,585.3 946.4 29.9 609.0 27.2 927.6 1,354.3 9,629.1 9,590.3 9,224.5 1,048.9 2,688.0 5,487.6 238.0 127.8 78.9 48.9 38.8 .4 1,042.3 36.2 1,006.1 64.6 1,947.2 1,154.7 792.5 1,731.5 1,703.7 1,022.6 31.9 649.2 27.9 979.0 1,483.6 10,175.2 10,132.4 9,732.7 1,078.4 2,833.5 5,820.8 262.3 137.5 86.1 51.4 42.7 .4 1,003.6 18.1 985.5 52.9 1,828.1 1,119.7 708.4 1,630.6 1,603.2 956.1 30.0 617.1 27.4 926.8 1,355.2 9,675.8 9,677.1 9,305.7 1,053.8 2,732.4 5,519.5 242.3 129.1 79.6 49.5 –1.4 0 1,009.8 23.9 985.8 50.9 1,836.6 1,102.8 733.8 1,647.7 1,618.0 972.0 30.3 615.7 29.7 944.6 1,401.0 9,799.2 9,757.2 9,373.7 1,056.5 2,705.4 5,611.8 251.6 131.8 81.2 50.6 42.0 .4 1,027.4 29.1 998.3 53.2 1,882.9 1,126.1 756.8 1,710.7 1,683.1 999.4 31.8 651.8 27.6 969.8 1,454.7 10,014.5 9,917.5 9,540.5 1,074.0 2,759.4 5,707.1 243.3 133.7 83.4 50.4 97.0 1.0 1,038.4 33.1 1,005.3 62.1 1,930.0 1,148.4 781.6 1,717.1 1,689.4 1,020.1 31.7 637.6 27.8 972.2 1,477.6 10,099.7 10,069.2 9,674.0 1,074.7 2,822.7 5,776.5 259.5 135.7 85.3 50.5 30.5 .3 1,048.7 38.6 1,010.0 68.4 1,976.2 1,171.1 805.0 1,742.3 1,714.4 1,034.6 31.7 648.1 28.0 983.2 1,489.8 10,245.2 10,200.9 9,785.7 1,081.6 2,846.3 5,857.8 275.8 139.3 87.1 52.2 44.4 .4 1,054.9 44.0 1,010.9 74.7 1,999.6 1,173.0 826.6 1,756.1 1,727.9 1,036.2 32.4 659.4 28.1 990.8 1,512.2 10,341.3 10,342.2 9,930.7 1,083.3 2,905.7 5,941.7 270.5 141.0 88.5 52.5 –.9 0 8,396.9 8,652.1 8,384.5 8,510.7 8,623.9 8,607.1 8,692.1 8,686.2 32,183 28,064 299,199 33,683 28,641 302,087 32,299 27,989 299,568 32,626 28,336 300,351 33,270 28,650 301,004 33,480 28,532 301,667 33,874 28,739 302,452 34,104 28,646 303,225 r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third quarter of 2007. 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 2007 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 ............ July r Aug. r Sep. r 2008 Oct. r Nov. r Dec. r Jan. p 50.8 35.5 30.1 27.1 4.8 3.5 22.3 10.7 11.6 2.9 5.5 3.7 1.8 57.2 21.4 14.4 11.4 –.3 –.9 11.7 –11.0 22.8 3.0 7.0 4.7 2.4 52.2 22.7 18.2 12.3 1.3 –.2 11.0 –.6 11.5 6.0 4.5 3.6 .8 49.6 41.7 36.1 32.6 2.5 –.7 30.0 5.6 24.4 3.5 5.6 3.4 2.2 27.5 9.3 4.7 1.0 –2.7 –2.0 3.8 –.8 4.6 3.7 4.6 4.5 0 33.7 31.5 26.5 23.1 4.2 3.1 19.0 1.9 17.1 3.4 5.0 3.6 1.6 54.0 31.7 26.7 23.2 –1.2 –.4 24.3 5.4 18.9 3.4 5.0 3.4 1.5 32.2 44.6 32.3 23.1 .5 .3 22.5 3.0 19.6 9.4 12.2 6.1 6.2 2.0 1.3 .6 4.9 11.4 3.4 8.0 .7 .6 4.6 –.1 –4.0 .1 3.6 9.3 41.5 32.3 21.1 –18.0 –2.7 41.7 10.6 .7 .6 0 9.3 10.2 1.8 8.4 .4 17.5 9.7 7.8 12.8 12.9 .3 0 12.5 0 5.2 –1.8 59.0 41.7 36.4 –5.2 18.9 22.8 2.8 2.3 .6 1.7 17.3 –.6 2.5 –3.1 1.4 17.3 9.6 7.6 13.4 13.2 11.1 .6 1.5 .1 1.9 4.4 47.8 44.6 41.1 22.4 –23.7 42.4 2.9 .6 .6 0 3.2 –6.8 2.3 –9.1 1.8 16.9 9.7 7.3 .5 .4 –1.3 –.6 2.5 0 4.6 7.6 42.0 52.3 48.9 9.9 23.4 15.6 2.9 .7 .7 0 –10.4 6.2 1.2 5.1 2.3 3.2 –3.9 7.1 7.0 7.0 –1.3 0 8.1 .1 .5 7.9 19.6 26.9 30.3 –2.9 14.5 18.8 –4.1 .6 .3 .3 –7.2 8.4 1.7 6.7 2.3 3.3 –3.9 7.1 –8.4 –8.5 –8.9 .8 –.2 0 3.4 8.0 25.7 82.9 86.6 –9.8 51.4 45.0 –4.1 .4 .4 0 –57.2 –2.4 2.1 –4.7 2.3 3.1 –3.9 7.1 22.7 22.8 18.0 1.0 3.6 .1 3.3 8.0 46.0 28.3 32.0 –9.0 9.0 31.9 –4.1 .4 .4 0 17.7 7.9 .3 7.7 –2.6 3.7 –.7 4.4 –7.3 –7.3 –12.7 .1 5.3 –.1 14.2 –14.4 46.6 44.6 39.9 –13.2 14.4 38.7 4.4 .3 .4 0 2.0 22.9 40.4 42.2 11.0 –8.5 –33.8 11.4 7.1 p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third quarter of 2007. 1. Consists of nonmortgage interest paid by households. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. Table 4.—Personal Income and Its Disposition, Change from Preceding Period (Years and Quarters) [Billions of dollars] Seasonally adjusted at annual rates 2006 2007 r 2006 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 ............ 2007 IV I II III r IV r 682.3 416.2 350.3 310.7 68.1 26.9 242.5 48.1 194.5 39.7 65.8 43.0 22.7 675.4 411.3 341.8 294.7 47.8 23.6 247.0 46.4 200.5 47.1 69.5 46.1 23.5 115.4 70.6 57.4 44.2 2.6 1.0 41.7 4.9 36.7 13.2 13.2 9.9 3.3 169.3 157.4 137.2 126.9 32.9 19.0 94.1 16.4 77.7 10.2 20.2 11.3 8.9 269.0 165.0 141.4 127.0 17.5 12.1 109.5 17.8 91.6 14.5 23.6 12.5 11.1 108.1 37.0 24.5 14.2 3.7 –1.3 10.4 13.7 –3.2 10.2 12.5 11.7 .8 157.7 80.8 63.8 52.9 4.9 .6 48.0 –.4 48.4 11.0 17.0 11.8 5.2 118.5 76.3 61.5 50.1 1.8 –.6 48.2 5.8 42.4 11.4 14.8 11.5 3.3 36.8 –11.4 48.3 11.6 178.7 81.3 97.4 91.8 102.2 101.1 –1.4 2.6 –10.4 52.8 145.2 537.1 542.9 516.7 25.0 171.8 319.8 20.3 6.0 4.4 1.6 –5.8 35.6 16.8 18.7 10.1 150.7 54.5 96.2 119.0 118.4 76.2 2.0 40.2 .7 51.4 129.3 546.1 542.1 508.2 29.5 145.5 333.2 24.3 9.7 7.2 2.5 3.9 –9.9 3.5 –13.4 –2.5 32.4 7.0 25.5 31.5 29.9 16.0 .8 13.2 1.5 6.7 12.6 102.9 134.2 121.8 11.0 40.2 70.6 11.3 1.1 1.5 –.4 –31.4 6.2 5.8 .3 –2.0 8.5 –16.9 25.4 17.1 14.8 15.9 .3 –1.4 2.3 17.8 45.8 123.4 80.1 68.0 2.7 –27.0 92.3 9.3 2.7 1.6 1.1 43.4 17.6 5.2 12.5 2.3 46.3 23.3 23.0 63.0 65.1 27.4 1.5 36.1 –2.1 25.2 53.7 215.3 160.3 166.8 17.5 54.0 95.3 –8.3 1.9 2.2 –.2 55.0 11.0 4.0 7.0 8.9 47.1 22.3 24.8 6.4 6.3 20.7 –.1 –14.2 .2 2.4 22.9 85.2 151.7 133.5 .7 63.3 69.4 16.2 2.0 1.9 .1 –66.5 10.3 5.5 4.7 6.3 46.2 22.7 23.4 25.2 25.0 14.5 0 10.5 .2 11.0 12.2 145.5 131.7 111.7 6.9 23.6 81.3 16.3 3.6 1.8 1.7 13.9 6.2 5.4 .9 6.3 23.4 1.9 21.6 13.8 13.5 1.6 .7 11.3 .1 7.6 22.4 96.1 141.3 145.0 1.7 59.4 83.9 –5.3 1.7 1.4 .3 –45.3 249.0 255.2 35.9 126.2 113.2 –16.8 85.0 –5.9 r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third quarter of 2007. 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 2007 June Aug. r July r 2008 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 .5 .5 .4 0.5 .3 .2 .5 0.4 .3 .3 .3 0.4 .5 .6 .4 0.2 .1 .1 .3 0.3 .4 .4 .3 0.5 .4 .4 .3 0.3 .6 .5 .8 .2 7.9 .6 .3 1.0 0 .4 .6 .4 1.0 .6 .9 .8 1.0 .7 .5 –.1 .6 –.1 2.1 .9 .8 1.0 .8 .2 .3 .5 –.6 2.7 .9 .8 .9 0 .5 .5 .4 .6 3.2 .2 –.3 .9 .4 0 .5 .2 .8 3.1 .2 –.3 .9 –.5 .3 .5 .3 –.2 3.1 .2 –.3 .8 1.3 .3 .5 .4 .8 –3.3 .2 –.1 .5 –.4 1.4 –.9 .4 .2 –1.7 –.1 .7 .4 –.5 .7 .4 .4 2.1 –.8 .7 .5 .9 .8 .3 .3 –.3 .5 .3 .9 –.9 1.8 .8 .3 –.8 .3 .5 .4 –1.2 .5 .6 –.4 .1 .1 Based on chained (2000) dollar measures Real disposable personal income ...................................................................... .3 .5 .5 .1 –.1 Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third quarter of 2007. p Table 6.—Personal Income and Its Disposition, Percent Change from Preceding Period (Years and Quarters) Seasonally adjusted at annual rates 2006 2007 r 2006 III 2007 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 .......................................................................................................... 6.6 5.9 6.2 4.8 6.1 5.5 5.7 4.9 4.3 3.9 3.9 3.8 6.3 8.7 9.4 5.8 10.0 9.0 9.5 6.7 3.8 1.9 1.6 3.4 5.6 4.2 4.1 4.7 4.1 3.9 3.9 4.0 3.8 27.2 11.0 8.0 16.3 6.0 6.0 12.0 5.9 3.5 18.5 8.4 4.9 13.8 7.4 5.5 9.5 5.7 –3.9 –16.7 7.4 2.5 15.8 8.1 3.0 3.8 4.4 2.5 –14.0 1.9 –5.9 15.1 4.3 7.9 14.2 5.2 7.2 19.2 10.5 8.7 13.1 16.2 11.1 16.2 9.1 4.4 85.9 10.4 8.2 13.8 1.5 1.0 6.5 3.4 4.0 47.1 9.9 8.2 12.5 6.0 4.6 3.3 5.9 2.4 41.9 4.8 .6 11.2 3.2 3.1 6.2 3.8 5.9 2.4 6.8 6.2 5.5 2.8 5.4 6.1 5.4 4.3 6.1 5.3 3.0 1.0 –3.9 6.9 7.3 6.8 8.2 7.0 5.7 .3 9.5 5.0 4.7 2.6 3.4 5.7 6.1 .6 8.6 5.9 –.8 4.0 –.3 Based on chained (2000) dollar measures Real disposable personal income ...................................................................... r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third quarter of 2007. 3.1 3.0 1.7 6.2 5.4 Table 7.—Real Personal Consumption Expenditures by Major Type of Product (Months) 2007 June July Aug. 2008 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 .............................................................................................. 8,250.2 1,221.4 2,385.1 4,665.9 8,272.0 1,217.2 2,398.8 4,676.3 8,308.4 1,247.3 2,389.7 4,698.3 8,326.4 1,261.2 2,402.0 4,693.8 8,328.0 1,257.1 2,406.0 4,694.6 8,347.7 1,248.5 2,407.3 4,717.8 8,348.4 1,241.4 2,402.1 4,728.4 8,351.0 1,224.7 2,398.4 4,745.9 Change from preceding period in billions of chained (2000) dollars, seasonally adjusted at annual rates Personal consumption expenditures ................................................. Durable goods .................................................................................... Nondurable goods .............................................................................. Services .............................................................................................. 5.9 –21.5 –1.3 22.1 21.8 –4.2 13.7 10.4 36.4 30.1 –9.1 22.0 18.0 13.9 12.3 –4.5 1.6 –4.1 4.0 .8 19.7 –8.6 1.3 23.2 .7 –7.1 –5.2 10.6 2.6 –16.7 –3.7 17.5 Percent change from preceding period in chained (2000) dollars, seasonally adjusted at monthly rates Personal consumption expenditures ................................................. Durable goods .................................................................................... Nondurable goods .............................................................................. Services .............................................................................................. p r .1 –1.7 –.1 .5 .3 –.4 .6 .2 .4 2.5 –.4 .5 .2 1.1 .5 –.1 0 –.3 .2 0 .2 –.7 .1 .5 0 –.6 –.2 .2 0 –1.3 –.2 .4 Preliminary Revised Table 8.—Real Personal Consumption Expenditures by Major Type of Product (Years and Quarters) Seasonally adjusted at annual rates 2006 2007 r 2006 III 2007 IV I II III IV r 8,244.3 1,228.4 2,383.8 4,656.7 8,302.2 1,241.9 2,396.8 4,689.5 8,341.3 1,249.0 2,405.1 4,713.6 Billions of chained (2000) dollars Personal consumption expenditures ................................................. Durable goods .................................................................................... Nondurable goods .............................................................................. Services .............................................................................................. 8,044.1 1,180.5 2,337.7 4,545.5 8,275.9 1,235.6 2,393.1 4,672.6 8,063.8 1,186.3 2,343.9 4,554.0 8,141.2 1,197.6 2,368.8 4,595.5 8,215.7 1,223.2 2,386.6 4,630.7 Change from preceding period in billions of chained (2000) dollars Personal consumption expenditures ................................................. Durable goods .................................................................................... Nondurable goods .............................................................................. Services .............................................................................................. 240.5 43.1 82.3 118.2 231.8 55.1 55.4 127.1 54.5 16.1 18.3 22.4 77.4 11.3 24.9 41.5 74.5 25.6 17.8 35.2 28.6 5.2 –2.8 26.0 57.9 13.5 13.0 32.8 39.1 7.1 8.3 24.1 2.8 4.5 2.2 2.8 1.9 2.3 1.4 2.1 Percent change from preceding period in chained (2000) dollars Personal consumption expenditures ................................................. Durable goods .................................................................................... Nondurable goods .............................................................................. Services .............................................................................................. r Revised 3.1 3.8 3.6 2.7 2.9 4.7 2.4 2.8 2.8 5.6 3.2 2.0 3.9 3.9 4.3 3.7 3.7 8.8 3.0 3.1 1.4 1.7 –.5 2.3 Table 9.—Price Indexes for Personal Consumption Expenditures: Level and Percent Change From Preceding Period (Months) 2007 June July Aug. 2008 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 .............................................. 117.644 87.484 118.881 124.346 117.776 87.363 118.989 124.557 117.755 87.044 118.451 124.877 118.087 86.865 118.813 125.329 118.428 86.926 119.221 125.708 119.187 86.736 121.289 126.044 119.559 86.513 121.928 126.437 120.000 86.613 122.721 126.785 114.270 116.083 111.623 114.457 116.173 111.768 114.645 116.053 111.876 114.946 116.333 112.105 115.207 116.664 112.335 115.436 117.488 112.539 115.702 117.867 112.791 116.053 118.298 113.113 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 .1 0 .2 .1 –.1 .1 .2 0 –.4 –.5 .3 .3 –.2 .3 .4 .3 .1 .3 .3 .6 –.2 1.7 .3 .3 –.3 .5 .3 .4 .1 .7 .3 .1 .1 .1 .2 .1 .1 .2 –.1 .1 .3 .2 .2 .2 .3 .2 .2 .7 .2 .2 .3 .2 .3 .4 .3 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 2007 June Disposable personal income ............................................................................... Personal consumption expenditures .................................................................. Durable goods .................................................................................................... Nondurable goods .............................................................................................. Services .............................................................................................................. July r 3.0 2.9 4.3 2.6 2.7 Aug. r 3.6 2.5 1.9 2.2 2.7 2008 Sep. r 4.0 3.2 6.2 2.0 3.2 3.4 3.2 6.0 2.6 3.0 Oct. r 2.6 2.6 5.8 2.1 2.3 Nov. r Dec. r 1.9 2.6 4.6 1.9 2.6 Jan. p 1.7 2.1 2.5 .6 2.8 1.2 1.8 0 .5 2.7 p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third quarter of 2007. Table 11.—Price Indexes for Personal Consumption Expenditures: Percent Change From Month One Year Ago 2007 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 .............................................. p 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. July Aug. 2008 Sep. Oct. r Nov. r Dec. r Jan. p 2.3 –1.6 2.2 3.1 2.1 –1.8 1.8 3.1 1.8 –2.2 1.0 3.0 2.5 –1.9 2.8 3.1 3.0 –1.8 4.4 3.2 3.6 –1.7 6.6 3.2 3.6 –1.6 6.3 3.3 3.7 –1.3 6.8 3.1 1.9 2.2 1.7 2.0 2.0 1.8 1.9 1.7 1.6 1.9 2.3 1.6 2.0 2.9 1.7 2.1 3.7 1.9 2.2 3.6 2.0 2.2 3.7 1.9