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EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, AUGUST 29, 2008 James E. Rankin: Brendan Leary: (202) 606-5301 (202) 606-5302 (Personal Income) (Personal Outlays) BEA 08-39 PERSONAL INCOME AND OUTLAYS: JULY 2008 Personal income decreased $89.9 billion, or 0.7 percent, in July, in contrast to an increase of $7.4 billion, or 0.1 percent, in June and an increase of $218.0 billion, or 1.8 percent, in May. Disposable personal income (DPI) decreased $114.7 billion, or 1.1 percent, in July, compared with a decrease of $208.0 billion, or 1.9 percent, in June and an increase of $595.9 billion, or 5.7 percent in May. Personal consumption expenditures (PCE) increased $24.1 billion, or 0.2 percent, in July, compared with an increase of $65.5 billion, or 0.6 percent, in June. The pattern of changes in income reflects the pattern of payments associated with the Economic Stimulus Act of 2008 (see page 2). Real DPI decreased 1.7 percent in July, compared with a decrease of 2.6 percent in June. Real PCE decreased 0.4 percent, compared with a decrease of 0.1 percent. 2008 Mar. Apr. May June (Percent change from preceding month) Personal income, current dollars Disposable personal income: Current dollars Chained (2000) dollars Personal consumption expenditures: Current dollars Chained (2000) dollars July 0.4 0.2 1.8 0.1 -0.7 0.4 0.1 0.3 0.1 5.7 5.2 -1.9 -2.6 -1.1 -1.7 0.6 0.3 0.4 0.1 0.8 0.3 0.6 -0.1 0.2 -0.4 NOTE.--Monthly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified. Month-to-month 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/newsreleases/rels.htm. -more- -2- In April, May, June, and July, changes in disposable personal income (DPI) -- personal income less personal current taxes -- were affected by the Economic Stimulus Act of 2008. The federal government issued rebate payments of $1.9 billion in April ($23.3 billion at an annual rate), of $48.1 billion in May ($577.1 billion at an annual rate), of $27.9 billion in June ($334.4 billion at an annual rate), and of $13.7 billion in July ($164.1 billion at an annual rate). These rebates increased government social benefit payments and reduced personal current taxes. The rebates boosted the change in DPI $23.3 billion in April and $553.8 billion in May, and reduced the change in DPI by $242.7 billion in June and by $170.3 billion in July. Excluding these rebate payments, which are discussed more fully below, DPI increased $55.6 billion, or 0.5 percent, in July, increased $34.7 billion, or 0.3 percent, in June, and increased $42.1 billion, or 0.4 percent, in May. -more- -3- Wages and salaries Private wage and salary disbursements increased $13.2 billion in July, compared with an increase of $7.9 billion in June. Goods-producing industries' payrolls increased $4.6 billion, compared with an increase of $1.8 billion; manufacturing payrolls increased $0.7 billion, compared with an increase of $1.7 billion. Services-producing industries' payrolls increased $8.6 billion, compared with an increase of $6.0 billion. Government wage and salary disbursements increased $4.3 billion, compared with an increase of $6.1 billion. Other personal income Supplements to wages and salaries increased $3.8 billion in July, compared with an increase of $3.3 billion in June. Proprietors' income increased $4.4 billion in July, compared with an increase of $7.6 billion in June. Farm proprietors' income decreased $2.3 billion, compared with a decrease of $2.0 billion. Nonfarm proprietors' income increased $6.8 billion, compared with an increase of $9.6 billion. Rental income of persons increased $4.4 billion in July, compared with an increase of $7.4 billion in June. Personal income receipts on assets (personal interest income plus personal dividend income) increased $18.4 billion, in contrast to a decrease of $4.2 billion. Personal current transfer receipts decreased $136.6 billion in July, compared with a decrease of $19.6 billion in June. The July and June changes reflected provisions of the Economic Stimulus Act of 2008, which boosted the level of personal current transfer receipts by $4.2 billion (at an annual rate) in July, by $149.4 billion in June, and by $179.6 billion in May. These personal current transfer receipts reflected payments to individuals who either paid no income tax or whose payment exceeded the amount of income tax paid (see box on page 6). Contributions for government social insurance -- a subtraction in calculating personal income -increased $1.7 billion in July, compared with an increase of $1.1 billion in June. -more- -4- Personal current taxes and disposable personal income Personal current taxes increased $24.7 billion in July, compared with an increase of $215.5 billion in June. Provisions of the Economic Stimulus Act of 2008 reduced the level of personal current taxes by $159.9 billion (at an annual rate) in July, by $185.0 billion in June, and by $397.5 billion in May. The reductions in current personal taxes reflected rebate payments to eligible individual taxpayers (see box below). Disposable personal income (DPI) -- personal income less personal current taxes -- decreased 114.7 billion, or 1.1 percent, in July, compared with a decrease of $208.0 billion, or 1.9 percent, in June. Personal outlays and personal saving Personal outlays -- PCE, personal interest payments, and personal current transfer payments -increased $24.4 billion in July, compared with an increase of $63.2 billion in June. PCE increased $24.1 billion, compared with an increase of $65.5 billion. Personal saving -- DPI less personal outlays -- was $133.8 billion in July, compared with $272.9 billion in June. Personal saving as a percentage of disposable personal income was 1.2 percent in July, compared with 2.5 percent in June. 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, 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 -- decreased 1.7 percent in July, compared with a decrease of 2.6 percent in June. Real PCE -- PCE adjusted to remove price changes -- decreased 0.4 percent in July, compared with a decrease of 0.1 percent in June. Purchases of durable goods decreased 1.6 percent, compared with a decrease of 1.4 percent. Purchases of motor vehicles and parts accounted for most of the decrease in July and about one-half the decrease in June. Purchases of nondurable goods decreased 0.9 percent in July, compared with a decrease of 0.3 percent in June. Purchases of services increased less than 0.1 percent, compared with an increase of 0.2 percent. PCE price index -- The price index for PCE increased 0.6 percent in July, compared with an increase of 0.7 percent in June. The PCE price index, excluding food and energy, increased 0.3 percent in July, the same increase as in June. -more- -5- Revisions Estimates for personal income and DPI have been revised for January through June; estimates for PCE have been revised for April through June. Changes in personal income, current-dollar and chained (2000) dollar DPI, and current-dollar and chained (2000) dollar PCE for May and June -revised and as published in last month's release -- are shown below. For January through June, the revisions to wages and salaries reflect the incorporation of the newly available BLS tabulations of first-quarter private wages and salaries from the quarterly census of employment and wages. Revisions to personal current taxes and to contributions for government social insurance reflect the revisions to wages and salaries. Change from preceding month May Previous Revised June Previous Revised (Billions of dollars) (Percent) (Billions of dollars) Personal Income: Current dollars...................... 219.3 218.0 1.8 1.8 Disposable personal income: Current dollars...................... Chained (2000) dollars......... 595.4 451.4 595.9 452.7 5.7 5.2 5.7 5.2 76.5 25.6 76.8 26.5 0.8 0.3 0.8 0.3 Personal consumption expenditures: Current dollars...................... Chained (2000) dollars......... Previous Revised 6.8 Previous Revised (Percent) 7.4 0.1 0.1 -210.3 -208.0 -240.7 -237.7 -1.9 -2.6 -1.9 -2.6 0.6 -0.2 0.6 -0.1 57.1 -16.2 65.5 -8.3 This news release presents revised estimates of wages and salaries, personal taxes, and contributions for government social insurance for January through March 2008 (first quarter). These estimates reflect newly available first-quarter wage and salary tabulations from the quarterly census of employment and wages from the Bureau of Labor Statistics. -more- -6- Economic Stimulus Act of 2008 The Economic Stimulus Act of 2008 provides rebate payments to eligible individual taxpayers as well as tax reductions for businesses. For individuals, the amount of the rebate is determined by information reported on tax filings for 2007 and is based on filing status, level of adjusted gross income, and the number of qualifying children. According to the Joint Committee on Taxation and the Congressional Budget Office, rebates to individuals are expected to total $106.7 billion for fiscal year 2008. The majority of rebates were sent during the initial round of payments, which began April 28, 2008, and continued on a weekly basis through mid-July 2008. In the NIPAs, rebates for residents of the 50 states and the District of Columbia are recorded as either an offset to personal current taxes or as a social benefit payment to persons. Rebates for individuals with tax liabilities that exceed the rebate amount are treated as an offset to personal current taxes in the NIPAs. Rebates for individuals who pay no income taxes (or for whom the rebate would exceed the amount of the income taxes they do pay) are treated as a government social benefit payment to persons in the NIPAs. 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 -- September 29, 2008, at 8:30 A.M. EDT for Personal Income and Outlays for August. -more- Table 1. Personal Income and Its Disposition (Months) [Billions of dollars] Seasonally adjusted at annual rates 2007 December 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....................... 2008 January r February r March r April r May r June r July p 11,924.0 7,973.9 6,493.1 5,398.0 1,220.2 751.0 4,177.7 1,054.9 3,122.8 1,095.1 1,480.8 1,009.9 470.9 11,930.0 7,984.6 6,495.4 5,389.7 1,216.0 747.9 4,173.6 1,049.8 3,123.8 1,105.7 1,489.3 1,014.0 475.2 11,952.4 8,005.2 6,513.0 5,402.9 1,215.9 747.2 4,187.0 1,047.4 3,139.6 1,110.1 1,492.3 1,016.2 476.1 11,999.0 8,039.4 6,545.7 5,432.2 1,221.2 750.0 4,211.0 1,053.9 3,157.1 1,113.4 1,493.7 1,015.7 478.0 12,026.4 8,049.1 6,549.7 5,431.7 1,214.2 747.2 4,217.4 1,049.1 3,168.3 1,118.1 1,499.4 1,021.5 477.9 12,244.4 8,073.4 6,570.2 5,446.5 1,216.4 748.7 4,230.2 1,048.2 3,182.0 1,123.6 1,503.2 1,024.4 478.8 12,251.8 8,090.6 6,584.1 5,454.4 1,218.2 750.4 4,236.2 1,049.6 3,186.6 1,129.7 1,506.5 1,027.2 479.3 12,161.9 8,111.8 6,601.6 5,467.6 1,222.8 751.1 4,244.8 1,049.3 3,195.5 1,134.0 1,510.3 1,030.2 480.1 1,074.3 47.3 1,027.0 37.2 2,059.4 1,239.4 820.0 1,757.3 1,724.2 1,019.3 36.9 667.9 33.2 978.1 1,074.5 41.7 1,032.8 38.1 2,056.4 1,232.0 824.4 1,766.3 1,734.2 1,024.1 37.0 673.1 32.1 989.8 1,069.1 42.1 1,027.0 38.8 2,054.2 1,224.6 829.6 1,776.6 1,744.3 1,030.6 38.2 675.5 32.3 991.5 1,071.4 41.0 1,030.4 40.5 2,051.7 1,217.2 834.5 1,791.3 1,758.9 1,042.5 39.3 677.1 32.4 995.3 1,071.2 39.8 1,031.4 46.6 2,047.2 1,208.3 838.8 1,807.5 1,775.1 1,041.0 40.6 693.5 32.4 995.2 1,076.6 39.2 1,037.3 53.4 2,043.0 1,199.4 843.6 1,995.3 1,962.9 1,051.8 41.5 869.5 32.4 997.2 1,084.2 37.2 1,046.9 60.8 2,038.8 1,190.5 848.3 1,975.7 1,943.3 1,057.0 42.0 844.3 32.4 998.3 1,088.6 34.9 1,053.7 65.2 2,057.2 1,204.0 853.2 1,839.1 1,806.6 1,067.5 43.3 695.8 32.5 1,000.0 Less: Personal current taxes ................................................................... 1,525.7 1,530.6 1,534.1 1,540.2 1,532.0 1,154.2 1,369.7 1,394.4 Equals: Disposable personal income...................................................... 10,398.3 10,399.4 10,418.3 10,458.8 10,494.3 11,090.2 10,882.2 10,767.5 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) ................................................................. 10,355.4 9,941.4 1,074.0 2,933.8 5,933.7 274.0 139.9 82.6 57.3 10,393.1 9,984.6 1,072.5 2,946.9 5,965.3 267.9 140.6 82.7 57.9 10,385.2 9,982.7 1,075.4 2,935.1 5,972.2 261.7 140.8 82.9 57.9 10,436.3 10,039.7 1,065.3 2,970.2 6,004.2 255.6 141.0 83.1 57.9 10,471.6 10,077.0 1,062.8 2,990.8 6,023.4 253.0 141.7 83.4 58.3 10,546.1 10,153.8 1,065.7 3,025.6 6,062.5 250.3 142.0 83.7 58.3 10,609.3 10,219.3 1,051.5 3,070.3 6,097.4 247.7 142.3 84.0 58.3 10,633.7 10,243.4 1,036.0 3,080.2 6,127.2 247.6 142.7 84.4 58.3 Equals: Personal saving ........................................................................... Personal saving as a percentage of disposable personal income.... 42.9 0.4 6.3 0.1 33.0 0.3 22.5 0.2 22.7 0.2 544.1 4.9 272.9 2.5 133.8 1.2 8,689.0 8,662.8 8,666.9 8,673.8 8,682.5 9,135.2 8,897.5 8,748.3 34,266 28,633 303,457 34,246 28,527 303,670 34,286 28,522 303,866 34,396 28,526 304,068 34,488 28,534 304,287 36,419 29,999 304,521 35,705 29,194 304,776 35,298 28,679 305,043 Addenda: Disposable personal income: Total, billions of chained (2000) dollars 2 .............................................. Per capita: Current dollars................................................................................... Chained (2000) dollars ...................................................................... Population (midperiod, thousands) 3........................................................ p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. 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 2007 I 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....................... II 2008 III IV I r II r 10,993.9 7,432.6 6,027.2 5,004.2 1,167.2 731.2 3,837.1 986.7 2,850.4 1,023.0 1,405.3 956.8 448.5 11,663.2 7,818.6 6,362.0 5,286.7 1,205.4 746.0 4,081.3 1,035.2 3,046.1 1,075.2 1,456.6 991.9 464.7 11,473.0 7,734.0 6,294.0 5,234.0 1,198.4 746.4 4,035.6 1,020.8 3,014.8 1,059.9 1,440.0 977.6 462.3 11,577.5 7,760.1 6,310.7 5,242.5 1,200.7 744.0 4,041.9 1,036.5 3,005.4 1,068.1 1,449.4 987.7 461.7 11,730.4 7,839.3 6,377.7 5,297.0 1,204.3 743.4 4,092.6 1,035.3 3,057.4 1,080.8 1,461.6 996.5 465.1 11,872.1 7,941.0 6,465.5 5,373.4 1,218.2 750.2 4,155.3 1,048.3 3,106.9 1,092.1 1,475.5 1,005.9 469.6 11,960.5 8,009.7 6,518.0 5,408.3 1,217.7 748.4 4,190.5 1,050.4 3,140.2 1,109.7 1,491.7 1,015.3 476.4 12,174.2 8,071.0 6,568.0 5,444.2 1,216.3 748.8 4,227.9 1,049.0 3,179.0 1,123.8 1,503.0 1,024.4 478.7 1,014.7 16.2 998.6 44.3 1,824.8 1,125.4 699.4 1,603.0 1,578.1 938.9 29.9 609.3 24.9 925.5 1,056.2 44.0 1,012.2 40.0 2,000.1 1,214.3 785.8 1,713.3 1,681.4 999.4 32.3 649.6 31.9 965.1 1,037.2 39.3 997.9 35.1 1,930.9 1,172.2 758.7 1,695.7 1,665.3 981.9 31.3 652.1 30.4 959.8 1,050.2 42.3 1,007.9 44.6 1,982.5 1,206.1 776.5 1,699.2 1,667.5 997.5 31.2 638.8 31.7 959.1 1,063.8 47.4 1,016.4 41.8 2,030.9 1,236.2 794.7 1,720.6 1,688.0 1,008.8 32.5 646.7 32.5 966.0 1,073.8 47.1 1,026.7 38.6 2,056.2 1,242.7 813.5 1,737.8 1,704.7 1,009.6 34.3 660.9 33.1 975.3 1,071.7 41.6 1,030.1 39.1 2,054.1 1,224.6 829.5 1,778.1 1,745.8 1,032.4 38.2 675.3 32.2 992.2 1,077.3 38.7 1,038.6 53.6 2,043.0 1,199.4 843.6 1,926.2 1,893.8 1,050.0 41.4 802.4 32.4 996.9 Less: Personal current taxes ................................................................... 1,353.2 1,492.8 1,459.5 1,489.4 1,501.6 1,520.5 1,535.0 1,352.0 Equals: Disposable personal income...................................................... 9,640.7 10,170.5 10,013.5 10,088.0 10,228.8 10,351.5 10,425.5 10,822.2 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) ................................................................. 9,570.0 9,207.2 1,052.1 2,685.2 5,469.9 235.4 127.4 76.2 51.1 10,113.1 9,710.2 1,082.8 2,833.0 5,794.4 265.4 137.5 81.2 56.3 9,904.2 9,524.9 1,076.6 2,761.5 5,686.8 244.0 135.3 79.6 55.7 10,056.9 9,657.5 1,085.3 2,817.7 5,754.4 262.6 136.9 80.8 56.0 10,182.0 9,765.6 1,086.2 2,846.6 5,832.8 278.2 138.1 81.8 56.3 10,309.2 9,892.7 1,083.0 2,906.2 5,903.5 276.7 139.8 82.5 57.3 10,404.9 10,002.3 1,071.0 2,950.7 5,980.6 261.7 140.8 82.9 57.9 10,542.3 10,150.0 1,060.0 3,028.9 6,061.1 250.3 142.0 83.7 58.3 Equals: Personal saving ........................................................................... Personal saving as a percentage of disposable personal income.... 70.7 0.7 57.4 0.6 109.3 1.1 31.1 0.3 46.8 0.5 42.4 0.4 20.6 0.2 279.9 2.6 8,407.0 8,644.0 8,617.7 8,604.5 8,671.1 8,683.1 8,667.9 8,905.4 32,222 28,098 299,199 33,667 28,614 302,087 33,267 28,630 301,004 33,441 28,523 301,667 33,820 28,669 302,452 34,138 28,636 303,225 34,309 28,525 303,868 35,538 29,243 304,528 Addenda: Disposable personal income: Total, billions of chained (2000) dollars 2 .............................................. Per capita: Current dollars................................................................................... Chained (2000) dollars ...................................................................... Population (midperiod, thousands) 3........................................................ r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. 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 2008 December 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....................... January r February r March r April r May r June r July p 52.7 28.7 23.7 20.2 –2.4 –3.0 22.5 7.7 14.8 3.5 5.1 4.1 1.0 6.0 10.7 2.3 –8.3 –4.2 –3.1 –4.1 –5.1 1.0 10.6 8.5 4.1 4.3 22.4 20.6 17.6 13.2 –0.1 –0.7 13.4 –2.4 15.8 4.4 3.0 2.2 0.9 46.6 34.2 32.7 29.3 5.3 2.8 24.0 6.5 17.5 3.3 1.4 –0.5 1.9 27.4 9.7 4.0 –0.5 –7.0 –2.8 6.4 –4.8 11.2 4.7 5.7 5.8 –0.1 218.0 24.3 20.5 14.8 2.2 1.5 12.8 –0.9 13.7 5.5 3.8 2.9 0.9 7.4 17.2 13.9 7.9 1.8 1.7 6.0 1.4 4.6 6.1 3.3 2.8 0.5 –89.9 21.2 17.5 13.2 4.6 0.7 8.6 –0.3 8.9 4.3 3.8 3.0 0.8 –4.7 0.2 –5.0 –1.6 3.1 –3.5 6.6 29.4 29.3 16.5 4.1 8.7 0.1 2.2 0.2 –5.6 5.8 0.9 –3.0 –7.4 4.4 9.0 10.0 4.8 0.1 5.2 –1.1 11.7 –5.4 0.4 –5.8 0.7 –2.2 –7.4 5.2 10.3 10.1 6.5 1.2 2.4 0.2 1.7 2.3 –1.1 3.4 1.7 –2.5 –7.4 4.9 14.7 14.6 11.9 1.1 1.6 0.1 3.8 –0.2 –1.2 1.0 6.1 –4.5 –8.9 4.3 16.2 16.2 –1.5 1.3 16.4 0.0 –0.1 5.4 –0.6 5.9 6.8 –4.2 –8.9 4.8 187.8 187.8 10.8 0.9 176.0 0.0 2.0 7.6 –2.0 9.6 7.4 –4.2 –8.9 4.7 –19.6 –19.6 5.2 0.5 –25.2 0.0 1.1 4.4 –2.3 6.8 4.4 18.4 13.5 4.9 –136.6 –136.7 10.5 1.3 –148.5 0.1 1.7 Less: Personal current taxes ................................................................... 3.8 4.9 3.5 6.1 –8.2 –377.8 215.5 24.7 Equals: Disposable personal income...................................................... 48.9 1.1 18.9 40.5 35.5 595.9 –208.0 –114.7 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) ................................................................. 19.2 21.8 –10.8 9.7 23.0 –2.8 0.1 0.1 0.0 37.7 43.2 –1.5 13.1 31.6 –6.1 0.7 0.1 0.6 –7.9 –1.9 2.9 –11.8 6.9 –6.2 0.2 0.2 0.0 51.1 57.0 –10.1 35.1 32.0 –6.1 0.2 0.2 0.0 35.3 37.3 –2.5 20.6 19.2 –2.6 0.7 0.3 0.4 74.5 76.8 2.9 34.8 39.1 –2.7 0.3 0.3 0.0 63.2 65.5 –14.2 44.7 34.9 –2.6 0.3 0.3 0.0 24.4 24.1 –15.5 9.9 29.8 –0.1 0.4 0.4 0.0 Equals: Personal saving ........................................................................... 29.7 –36.6 26.7 –10.5 0.2 521.4 –271.2 –139.1 Addendum: Real disposable personal income, billions of chained (2000) dollars 2 .... 17.0 –26.2 4.1 6.9 8.7 452.7 –237.7 –149.2 p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. 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 2007 I II 2008 III IV I r II r 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....................... 724.1 406.8 355.5 313.3 68.0 27.2 245.4 48.5 196.9 42.3 51.2 30.8 20.4 669.3 386.0 334.8 282.5 38.2 14.8 244.2 48.5 195.7 52.2 51.3 35.1 16.2 248.3 147.9 131.8 113.7 15.5 8.2 98.1 16.3 81.9 18.0 16.1 9.5 6.5 104.5 26.1 16.7 8.5 2.3 –2.4 6.3 15.7 –9.4 8.2 9.4 10.1 –0.6 152.9 79.2 67.0 54.5 3.6 –0.6 50.7 –1.2 52.0 12.7 12.2 8.8 3.4 141.7 101.7 87.8 76.4 13.9 6.8 62.7 13.0 49.5 11.3 13.9 9.4 4.5 88.4 68.7 52.5 34.9 –0.5 –1.8 35.2 2.1 33.3 17.6 16.2 9.4 6.8 213.7 61.3 50.0 35.9 –1.4 0.4 37.4 –1.4 38.8 14.1 11.3 9.1 2.3 54.9 –17.9 72.9 3.4 227.9 103.4 124.5 82.3 96.2 94.4 –1.4 3.2 –13.9 51.2 41.5 27.8 13.6 –4.3 175.3 88.9 86.4 110.3 103.3 60.5 2.4 40.3 7.0 39.6 14.8 15.6 –0.8 –3.1 42.3 26.6 15.7 65.9 62.2 22.7 0.9 38.5 3.7 19.4 13.0 3.0 10.0 9.5 51.6 33.9 17.8 3.5 2.2 15.6 –0.1 –13.3 1.3 –0.7 13.6 5.1 8.5 –2.8 48.4 30.1 18.2 21.4 20.5 11.3 1.3 7.9 0.8 6.9 10.0 –0.3 10.3 –3.2 25.3 6.5 18.8 17.2 16.7 0.8 1.8 14.2 0.6 9.3 –2.1 –5.5 3.4 0.5 –2.1 –18.1 16.0 40.3 41.1 22.8 3.9 14.4 –0.9 16.9 5.6 –2.9 8.5 14.5 –11.1 –25.2 14.1 148.1 148.0 17.6 3.2 127.1 0.2 4.7 Less: Personal current taxes ................................................................... 145.4 139.6 59.9 29.9 12.2 18.9 14.5 –183.0 Equals: Disposable personal income...................................................... 578.7 529.8 188.4 74.5 140.8 122.7 74.0 396.7 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) ................................................................. 540.5 513.1 31.3 171.1 310.7 20.4 7.0 3.7 3.2 543.1 503.0 30.7 147.8 324.5 30.0 10.1 5.0 5.2 165.2 167.9 18.4 57.7 91.8 –6.1 3.4 1.4 1.9 152.7 132.6 8.7 56.2 67.6 18.6 1.6 1.2 0.3 125.1 108.1 0.9 28.9 78.4 15.6 1.2 1.0 0.3 127.2 127.1 –3.2 59.6 70.7 –1.5 1.7 0.7 1.0 95.7 109.6 –12.0 44.5 77.1 –15.0 1.0 0.4 0.6 137.4 147.7 –11.0 78.2 80.5 –11.4 1.2 0.8 0.4 Equals: Personal saving ........................................................................... 38.2 –13.3 23.2 –78.2 15.7 –4.4 –21.8 259.3 Addendum: Real disposable personal income, billions of chained (2000) dollars 2 .... 285.6 237.0 91.5 –13.2 66.6 12.0 –15.2 237.5 r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. 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 2008 December January r February r March r April r May r June r July 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 .............................. 0.4 0.4 0.4 0.3 0.1 0.1 0.0 0.6 0.2 0.3 0.3 0.2 0.4 0.4 0.5 0.1 0.2 0.1 0.1 0.4 1.8 0.3 0.3 0.3 0.1 0.2 0.2 0.2 –0.7 0.3 0.3 0.2 –0.4 –4.2 0.1 –0.3 0.8 1.7 0.2 0.0 2.5 –0.1 –0.6 0.5 0.5 1.2 –0.5 1.8 –0.1 –0.6 0.6 0.6 0.2 0.2 4.6 –0.1 –0.6 0.6 0.8 0.4 0.0 14.9 –0.2 –0.7 0.5 0.9 0.0 0.5 14.6 –0.2 –0.7 0.6 10.4 0.2 0.7 13.8 –0.2 –0.7 0.6 –1.0 0.1 0.4 7.2 0.9 1.1 0.6 –6.9 0.2 Less: Personal current taxes ................................................................... 0.3 0.3 0.2 0.4 –0.5 –24.7 18.7 1.8 Equals: Disposable personal income...................................................... 0.5 0.0 0.2 0.4 0.3 5.7 –1.9 –1.1 Addenda: Personal consumption expenditures ........................................................ Durable goods ...................................................................................... Nondurable goods ................................................................................ Services................................................................................................ 0.2 –1.0 0.3 0.4 0.4 –0.1 0.4 0.5 0.0 0.3 –0.4 0.1 0.6 –0.9 1.2 0.5 0.4 –0.2 0.7 0.3 0.8 0.3 1.2 0.6 0.6 –1.3 1.5 0.6 0.2 –1.5 0.3 0.5 Real disposable personal income ............................................................ 0.2 –0.3 5.2 –2.6 –1.7 Based on chained (2000) dollar measures 0.0 0.1 0.1 p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. Table 6. Personal Income and Its Disposition, Percent Change from Preceding Period (Years and Quarters) Seasonally adjusted at annual rates 2006 2007 2007 I II 2008 III IV I r II 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 .............................. 7.1 5.8 6.3 3.8 6.1 5.2 5.6 3.7 9.1 8.0 8.8 4.6 3.7 1.4 1.1 2.7 5.4 4.1 4.3 3.4 4.9 5.3 5.6 3.9 3.0 3.5 3.3 4.5 7.3 3.1 3.1 3.1 5.7 8.3 14.3 10.1 21.7 5.4 5.9 4.1 –9.6 9.6 7.9 12.4 6.9 4.3 5.9 –28.9 9.3 9.6 8.7 17.2 8.5 5.1 161.0 11.1 12.1 9.7 0.8 –0.3 5.3 –22.7 10.1 10.4 9.8 5.1 2.9 3.8 –27.3 5.1 2.1 9.8 4.1 3.9 –0.8 5.3 –0.4 –5.7 8.1 9.6 7.1 2.1 252.2 –2.1 –8.0 7.0 37.7 1.9 Less: Personal current taxes ................................................................... 12.0 10.3 18.3 8.5 3.3 5.1 3.9 –39.8 Equals: Disposable personal income...................................................... 6.4 5.5 7.9 3.0 5.7 4.9 2.9 16.1 Addenda: Personal consumption expenditures ........................................................ Durable goods ...................................................................................... Nondurable goods ................................................................................ Services................................................................................................ 5.9 3.1 6.8 6.0 5.5 2.9 5.5 5.9 7.4 7.1 8.8 6.7 5.7 3.3 8.4 4.8 4.6 0.3 4.2 5.6 5.3 –1.2 8.7 4.9 4.5 –4.3 6.3 5.3 6.0 –4.1 11.0 5.5 Real disposable personal income ............................................................ 3.5 2.8 0.6 –0.7 11.4 Based on chained (2000) dollar measures 4.4 –0.6 r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. 3.1 Table 7. Real Personal Consumption Expenditures by Major Type of Product (Months) 2007 2008 December January February April r March May r June r July p Billions of chained (2000) dollars, seasonally adjusted at annual rates Personal consumption expenditures ...................................................... Durable goods.......................................................................................... Nondurable goods.................................................................................... Services ................................................................................................... 8,307.2 1,243.0 2,400.4 4,689.6 8,317.3 1,239.7 2,395.4 4,706.2 8,304.6 1,241.8 2,388.3 4,699.6 8,326.2 1,229.5 2,410.1 4,707.3 8,337.3 1,230.3 2,419.3 4,708.3 8,363.8 1,237.3 2,427.4 4,720.8 8,355.5 1,219.8 2,421.3 4,730.7 8,322.5 1,200.8 2,400.5 4,732.5 Change from preceding period in billions of chained (2000) dollars, seasonally adjusted at annual rates Personal consumption expenditures ...................................................... Durable goods.......................................................................................... Nondurable goods.................................................................................... Services ................................................................................................... –4.6 –9.5 –4.8 6.7 10.1 –3.3 –5.0 16.6 –12.7 2.1 –7.1 –6.6 21.6 –12.3 21.8 7.7 11.1 0.8 9.2 1.0 26.5 7.0 8.1 12.5 –8.3 –17.5 –6.1 9.9 –33.0 –19.0 –20.8 1.8 Percent change from preceding period in chained (2000) dollars, seasonally adjusted at monthly rates Personal consumption expenditures ...................................................... Durable goods.......................................................................................... Nondurable goods.................................................................................... Services ................................................................................................... –0.1 –0.8 –0.2 0.1 0.1 –0.3 –0.2 0.4 –0.2 0.2 –0.3 –0.1 0.3 –1.0 0.9 0.2 0.1 0.1 0.4 0.0 0.3 0.6 0.3 0.3 –0.1 –1.4 –0.3 0.2 –0.4 –1.6 –0.9 0.0 p Preliminary r Revised Table 8. Real Personal Consumption Expenditures by Major Type of Product (Years and Quarters) Seasonally adjusted at annual rates 2006 2007 2007 I II 2008 III IV II r I Billions of chained (2000) dollars Personal consumption expenditures ...................................................... Durable goods.......................................................................................... Nondurable goods.................................................................................... Services ................................................................................................... 8,029.0 1,185.1 2,335.3 4,529.9 8,252.8 1,242.4 2,392.6 4,646.2 Personal consumption expenditures ...................................................... Durable goods.......................................................................................... Nondurable goods.................................................................................... Services ................................................................................................... 237.3 50.7 82.6 109.0 223.8 57.3 57.3 116.3 8,197.2 1,227.3 2,380.1 4,616.1 8,237.3 1,242.3 2,391.5 4,632.7 8,278.5 1,249.4 2,398.6 4,659.8 8,298.2 1,250.6 2,400.2 4,676.1 8,316.1 1,237.0 2,397.9 4,704.3 8,352.2 1,229.1 2,422.6 4,719.9 17.9 –13.6 –2.3 28.2 36.1 –7.9 24.7 15.6 0.9 –4.3 –0.4 2.4 1.7 –2.5 4.2 1.3 Change from preceding period in billions of chained (2000) dollars 77.3 26.6 20.3 34.6 40.1 15.0 11.4 16.6 41.2 7.1 7.1 27.1 19.7 1.2 1.6 16.3 Percent change from preceding period in chained (2000) dollars Personal consumption expenditures ...................................................... Durable goods.......................................................................................... Nondurable goods.................................................................................... Services ................................................................................................... r Revised 3.0 4.5 3.7 2.5 2.8 4.8 2.5 2.6 3.9 9.2 3.5 3.1 2.0 5.0 1.9 1.4 2.0 2.3 1.2 2.4 1.0 0.4 0.3 1.4 Table 9. Price Indexes for Personal Consumption Expenditures: Level and Percent Change From Preceding Period (Months) 2007 2008 December January February April r March May r June r July p Chain-type price indexes (2000=100), seasonally adjusted Personal consumption expenditures (PCE)............................................ Durable goods.......................................................................................... Nondurable goods.................................................................................... Services ................................................................................................... 119.678 86.398 122.229 126.534 120.052 86.508 123.030 126.760 120.212 86.598 122.903 127.083 120.585 86.636 123.245 127.557 120.873 86.382 123.631 127.938 121.407 86.123 124.651 128.427 122.312 86.204 126.813 128.897 123.087 86.276 128.321 129.476 Addenda: PCE excluding food and energy............................................................... Market-based PCE 1 ................................................................................ Market-based PCE excluding food and energy 1 ..................................... 115.706 117.865 112.624 115.975 118.262 112.900 116.141 118.392 113.029 116.357 118.701 113.134 116.532 119.016 113.320 116.720 119.590 113.487 117.016 120.588 113.775 117.336 121.385 114.030 Percent change from preceding period in price indexes, seasonally adjusted at monthly rates PCE............................................................................................................. Durable goods.......................................................................................... Nondurable goods.................................................................................... Services ................................................................................................... 0.3 –0.2 0.5 0.2 0.3 0.1 0.7 0.2 0.1 0.1 –0.1 0.3 0.3 0.0 0.3 0.4 0.2 –0.3 0.3 0.3 0.4 –0.3 0.8 0.4 0.7 0.1 1.7 0.4 0.6 0.1 1.2 0.4 Addenda: PCE excluding food and energy............................................................... Market-based PCE 1 ................................................................................ Market-based PCE excluding food and energy 1 ..................................... 0.2 0.3 0.2 0.2 0.3 0.2 0.1 0.1 0.1 0.2 0.3 0.1 0.2 0.3 0.2 0.2 0.5 0.1 0.3 0.8 0.3 0.3 0.7 0.2 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. Table 10. Real Disposable Personal Income and Real Personal Consumption Expenditures: Percent Change From Month One Year Ago 2007 2008 December January r February r March r April r May r June r July p Disposable personal income.................................................................... 1.6 0.8 0.5 0.4 0.9 6.3 3.4 1.2 Personal consumption expenditures ...................................................... Durable goods.......................................................................................... Nondurable goods.................................................................................... Services ................................................................................................... 1.9 2.0 1.0 2.3 1.7 1.3 0.8 2.1 1.2 1.4 0.5 1.4 1.5 –0.3 0.9 2.2 1.4 –0.1 1.6 1.5 1.5 –1.7 1.4 2.1 1.3 –1.4 1.0 2.0 0.7 –2.6 –0.3 1.8 p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. Table 11. Price Indexes for Personal Consumption Expenditures: Percent Change From Month One Year Ago 2007 2008 December January February April r March May r June r July p Personal consumption expenditures (PCE)............................................ Durable goods.......................................................................................... Nondurable goods.................................................................................... Services ................................................................................................... 3.5 –1.6 6.0 3.4 3.6 –1.3 6.5 3.2 3.5 –1.4 6.1 3.1 3.4 –1.2 5.6 3.3 3.4 –1.2 5.5 3.3 3.5 –1.3 5.6 3.4 4.0 –1.3 7.3 3.5 4.5 –1.0 8.2 3.8 Addenda: PCE excluding food and energy............................................................... Market-based PCE 1 ................................................................................ Market-based PCE excluding food and energy 1 ..................................... 2.3 3.5 1.9 2.2 3.5 1.8 2.1 3.4 1.7 2.2 3.3 1.7 2.2 3.3 1.8 2.2 3.5 1.9 2.3 4.1 2.0 2.4 4.7 2.1 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.