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TUESDAY August 4, 2009

PERSONAL INCOME AND CONSUMER SPENDING
FALL IN JUNE

Personal income fell 1.3 percent in June. Wages and
salaries, the largest component of personal income, fell 0.4
percent in June after decreasing 0.1 percent in May.
Real disposable personal income (DPI), income adjusted
for inflation and taxes, decreased 1.8 percent in June. The
June change in real disposable personal income reflects
selected provisions of the American Recovery and
Reinvestment Act (ARRA) of 2009, which boosted personal
current transfer receipts in May much more than in June.
Excluding those effects, real DPI decreased 0.5 percent in
June.
Real consumer spending (spending adjusted for price
changes) fell 0.1 percent in June, after remaining flat in May.
PCE prices rose 0.5 percent in June. Excluding food and
energy, prices rose 0.2 percent.

Personal saving as a percent of disposable income was 4.6
percent in June.

Average,
last 12
months

May

June

–0.3 %

1.3 %

–1.3 %

Excluding one-time
ARRA items

0.0 %

–0.1 %

Real DPI
–0.1 %
Excluding one-time
ARRA items

1.5 %
0.0 %

–1.8 %
–0.5 %

Real
PCE

–0.2 %

0.0 %

–0.1 %

0.0 %

0.1 %

0.5 %

12-month
average

May

June

3.8 %

6.2 %

4.6 %

Personal
Income

PCE
Prices

Personal
Saving
Rate

Real Disposable Personal Income and
Real Consumer Spending
2.0

Percent change (monthly)

1.5
1.0

Real Disposable Personal
Income

0.5
0.0
-0.5
-1.0

Real Consumer Spending

-1.5
-2.0

Mar

Apr

May

Jun

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 28, 2009, the July estimates of Personal Income and Outlays will be released.
Contact: Ralph Stewart 202–606–2649

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