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TUESDAY August 1, 2006

WAGES ROSE , CONSUMER SPENDING
HELD STEADY IN JUNE
Personal income rose 0.6 percent in June, after rising 0.4 percent in May, according to estimates released today
by the Bureau of Economic Analysis.
Real Disposable Personal Income and
Real Consumer Spending
5
4

Percentchange(m
onthly)

* Reflects impact of Hurricane Katrina
3

*

2
1
0
-1
-2

*

-3
-4
-5

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Real Disposable Personal Income

Jan

Feb

Mar

Apr

May

Jun

Real Consumer Spending

Disposable Personal Income
Real disposable personal income, the amount of personal income available for spending or saving, increased 0.4
percent in June after remaining unchanged in May.
Personal Income
The slight acceleration in personal income, a broader measure of income that includes all sources of income,
before taxes, reflected the following:
•
•
•

Wages and salaries, the largest component of personal income, increased 0.6 percent in June after
remaining unchanged in May. Growth turned up in private industries, reflecting a strong upturn in
services industries.
Interest and dividend income rose only slightly more than the previous month.
Proprietors’ income increased 0.1 percent, after increasing 0.7 percent.

Consumer Spending
Real consumer spending increased 0.2 percent in June, about the same increase as in May. Spending on durable
goods turned up, and spending on nondurable-goods accelerated. Spending on services slowed.
Consumer Prices
The PCE price index increased 0.2 percent in June after rising 0.4 percent in May.
Annual Revision
As part of BEA’s annual revision of the national income and product accounts, released July 28, 2006, estimates
of personal income and outlays have been revised back to January 2003.
BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and
economic data for states, local areas, and industries—are available on the BEA Web site: www.bea.gov. E-mail alerts are also available.
NOTE: On August 31, 2006, the July estimate of Personal Income will be released.
Contact: Ralph Stewart 202–606–2649

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