EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, MONDAY, MARCH 2, 2009 James E. Rankin: (202) 606-5301 (Personal Income)BEA 09-06 Brendan Leary: (202) 606-5302 (Personal Outlays) PERSONAL INCOME AND OUTLAYS: JANUARY 2009 Personal income increased $44.8 billion, or 0.4 percent, and disposable personal income (DPI) increased $183.0 billion, or 1.7 percent, in January, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $56.4 billion, or 0.6 percent. In December, personal income decreased $24.0 billion, or 0.2 percent, DPI decreased $17.8 billion, or 0.2 percent, and PCE decreased $101.2 billion, or 1.0 percent, based on revised estimates. Real disposable income increased 1.5 percent in January, compared with an increase of 0.4 percent in December. Real PCE increased 0.4 percent, in contrast to a decrease of 0.5 percent. 2008 2009 Sept. Oct. Nov. Dec. Jan. (Percent change from preceding month) Personal income, current dollars 0.1 0.0 -0.4 -0.2 0.4 Disposable personal income: Current dollars 0.2 0.1 -0.3 -0.2 1.7 Chained (2000) dollars 0.1 0.5 0.8 0.4 1.5 Personal consumption expenditures: Current dollars -0.4 -1.2 -0.8 -1.0 0.6 Chained (2000) dollars -0.5 -0.8 0.3 -0.5 0.4 The January change in personal income was boosted by several special factors. 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 annual adjustments to personal contributions for government social insurance (a subtraction in calculating personal income), by the adjustment to private wages and salaries for bonus payments, and by lump-sum social security benefit payments that had boosted December personal income. Excluding these special factors, personal income increased $24.2 billion, or 0.2 percent, in January, after decreasing $31.4 billion, or 0.3 percent, in December. These special factors are discussed more fully below. Compensation of employees Private wage and salary disbursements decreased $25.8 billion in January, compared with a decrease of $27.0 billion in December. The January change in private wages and salaries was reduced by an adjustment of $20.0 billion (at an annual rate) for smaller than usual bonus payments. This type of irregular payment was not accounted for in the primary monthly source data for wages and salaries. The adjustment to January wages was based on data from state governments and from other sources. Goods-producing industries' payrolls decreased $13.0 billion in January, compared with a decrease of $15.3 billion in December; manufacturing payrolls decreased $9.1 billion, compared with a decrease of $9.2 billion. Services-producing industries' payrolls decreased $12.8 billion, compared with a decrease of $11.7 billion. Government wage and salary disbursements increased $12.9 billion in January, compared with an increase of $1.4 billion in December. Pay raises for civilian and military personnel added $9.7 billion to government payrolls in January. Employer contributions for employee pension and insurance funds increased $7.0 billion in January, compared with an increase of $1.7 billion in December. Employer contributions for government social insurance increased $3.1 billion in January, in contrast to a decrease of $1.8 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 $102,000 to $106,800); together, these changes added $4.6 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 decreased $6.9 billion in January, compared with a decrease of $7.0 billion in December. Farm proprietors' income increased $0.2 billion, in contrast to a decrease of $0.5 billion. Nonfarm proprietors' income decreased $7.1 billion, compared with a decrease of $6.4 billion. Rental income of persons decreased $0.4 billion in January, in contrast to an increase of $4.0 billion in December. Personal income receipts on assets (personal interest income plus personal dividend income) decreased $6.7 billion, compared with a decrease of $29.0 billion. Personal current transfer receipts increased $66.6 billion in January, compared with an increase of $29.9 billion in December. The January change in current transfer receipts reflected 5.8-percent cost-of-living adjustments to social security benefits and to several other federal transfer payment programs; together, these changes added $41.1 billion to the January increase. The January change in current transfer receipts was reduced by lump-sum social security benefits payments, which had added $7.4 billion to December benefit payments; these benefit payments resulted from a recalculation of the earnings base underlying the benefits for recent retirees. Contributions for government social insurance -- a subtraction in calculating personal income -- increased $5.1 billion in January, in contrast to a decrease of $3.8 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 $4.6 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 $2.8 billion to the January increase. Personal current taxes and disposable personal income Personal current taxes decreased $138.3 billion in January, compared with a decrease of $6.2 billion in December. Federal net nonwithheld income taxes (payments of estimated taxes plus final settlements less refunds) reduced the January change by $114.0 billion, based on the Office of Tax Analysis projections of lower final settlements and higher refunds for 2009. Indexation provisions of current tax law reduced federal withheld income taxes by $4.0 billion in January. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $183.0 billion, or 1.7 percent, in January, in contrast to a decrease of $17.8 billion, or 0.2 percent, in December. Personal outlays and personal saving Personal outlays -- PCE, personal interest payments, and personal current transfer payments increased $54.5 billion in January, in contrast to a decrease of $103.5 billion in December. PCE increased $56.4 billion, in contrast to a decrease of $101.2 billion. Personal saving -- DPI less personal outlays -- was $545.5 billion in January, compared with $416.8 billion in December. Personal saving as a percentage of disposable personal income was 5.0 percent in January, compared with 3.9 percent in December. 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 www.bea.gov/national/nipaweb/Nipa-Frb.asp. Real DPI and real PCE Real DPI -- DPI adjusted to remove price changes -- increased 1.5 percent in January, compared with an increase of 0.4 percent in December. Real PCE -- PCE adjusted to remove price changes -- increased 0.4 percent in January, in contrast to a decrease of 0.5 percent in December. Purchases of durable goods increased 0.2 percent, in contrast to a decrease of 0.4 percent. Purchases of nondurable goods increased 0.7 percent, in contrast to a decrease of 1.9 percent. Purchases of services increased 0.3 percent, compared with an increase of 0.1 percent. PCE index -- the price index for PCE increased 0.2 percent in January, in contrast to a decrease of 0.5 percent in December. The PCE price index, excluding food and energy, increased 0.1 percent, in contrast to a decrease of less than 0.1 percent. 2008 Personal Income and Outlays Personal income increased 3.8 percent in 2008 (that is, from the 2007 annual level to the 2008 annual level), compared with an increase of 6.1 percent in 2007. DPI increased 4.7 percent, compared with an increase of 5.5 percent. PCE increased 3.6 percent, compared with an increase of 5.5 percent. Real DPI increased 1.3 percent in 2008, compared with an increase of 2.8 percent in 2007. Real PCE increased 0.2 percent, compared with an increase of 2.8 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, current- dollar 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. Change from preceding month November December Previous Revised Previous Revised Previous Revised Previous Revised (Billions of dollars) (Percent) (Billions of dollars) (Percent) Personal Income: Current dollars...................... -44.0 -50.0 -0.4 -0.4 -25.3 -24.0 -0.2 -0.2 Disposable personal income: Current dollars...................... -33.9 -32.5 -0.3 -0.3 -25.1 -17.8 -0.2 -0.2 Chained (2000) dollars............... 70.7 69.2 0.8 0.8 23.7 30.9 0.3 0.4 Personal consumption expenditures: Current dollars...................... -77.8 -79.6 -0.8 -0.8 -102.4 -101.2 -1.0 -1.0 Chained (2000) dollars............... 28.5 24.4 0.3 0.3 -43.3 -41.3 -0.5 -0.5 This news release also presents revised estimates of wages and salaries, personal taxes, and contributions for government social insurance for July through September 2008 (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. 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 27, 2009 at 8:30 A.M. EDT for Personal Income and Outlays for February. Table 1.--Personal Income and Its Disposition (Months) [Billions of dollars; months seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\r\ Oct 08\r\ Nov 08\r\ Dec 08\r\ Jan 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 12,233.6 12,139.9 12,179.8 12,191.4 12,185.7 12,135.7 12,111.7 12,156.5 Compensation of employees, received...... 8,049.3 8,072.3 8,104.2 8,102.3 8,106.8 8,089.9 8,064.1 8,061.5 Wage and salary disbursements.......... 6,543.8 6,563.5 6,592.2 6,589.8 6,592.0 6,575.0 6,549.4 6,536.5 Private industries................... 5,415.4 5,429.2 5,453.6 5,447.7 5,447.3 5,428.1 5,401.1 5,375.3 Goods-producing industries......... 1,214.6 1,213.0 1,214.0 1,208.0 1,205.4 1,197.0 1,181.7 1,168.7 Manufacturing.................... 745.6 745.3 742.6 738.9 737.5 731.7 722.5 713.4 Services-producing industries...... 4,200.9 4,216.2 4,239.6 4,239.7 4,241.9 4,231.1 4,219.4 4,206.6 Trade, transportation, and utilities....................... 1,050.3 1,049.2 1,052.6 1,049.2 1,043.9 1,038.6 1,030.2 1,033.6 Other services-producing industries...................... 3,150.6 3,167.0 3,186.9 3,190.4 3,197.9 3,192.6 3,189.3 3,173.0 Government........................... 1,128.4 1,134.3 1,138.6 1,142.1 1,144.7 1,146.9 1,148.3 1,161.2 Supplements to wages and salaries...... 1,505.5 1,508.8 1,511.9 1,512.5 1,514.8 1,514.9 1,514.7 1,524.9 Employer contributions for employee pension and insurance funds......... 1,027.4 1,029.8 1,031.3 1,032.6 1,035.0 1,036.7 1,038.4 1,045.4 Employer contributions for government social insurance.................... 478.2 479.1 480.6 479.9 479.9 478.2 476.4 479.5 Proprietors' income with inventory valuation and capital consumption adjustments............................. 1,083.5 1,090.0 1,079.8 1,071.8 1,075.4 1,058.0 1,051.0 1,044.1 Farm................................... 36.1 35.0 32.5 29.6 27.0 26.1 25.6 25.8 Nonfarm................................ 1,047.4 1,055.0 1,047.3 1,042.2 1,048.4 1,031.9 1,025.5 1,018.4 Rental income of persons with capital consumption adjustment.................. 68.3 72.8 77.3 55.5 86.0 88.7 92.7 92.3 Personal income receipts on assets....... 2,052.8 2,054.1 2,055.6 2,057.3 2,028.5 1,999.7 1,970.7 1,964.0 Personal interest income............... 1,204.5 1,210.9 1,217.4 1,223.8 1,199.2 1,174.5 1,149.9 1,142.4 Personal dividend income............... 848.3 843.2 838.2 833.4 829.4 825.2 820.8 821.6 Personal current transfer receipts....... 1,976.0 1,849.0 1,864.3 1,904.8 1,888.9 1,896.4 1,926.3 1,992.9 Government social benefits to persons.. 1,943.5 1,816.5 1,831.7 1,845.3 1,856.2 1,863.6 1,893.5 1,960.2 Old-age, survivors, disability, and health insurance benefits........... 1,057.0 1,067.4 1,067.5 1,072.0 1,074.5 1,082.8 1,088.3 1,125.0 Government unemployment insurance benefits............................ 42.0 47.6 62.4 67.5 64.6 64.2 87.2 100.4 Other................................ 844.5 701.5 701.9 705.8 717.2 716.6 718.1 734.9 Other current transfer receipts, from business (net)........................ 32.4 32.5 32.6 59.5 32.7 32.8 32.8 32.7 Less: Contributions for government social insurance............................... 996.3 998.2 1,001.4 1,000.3 1,000.0 997.0 993.2 998.3 Less: Personal current taxes............... 1,363.0 1,372.0 1,522.3 1,517.7 1,506.1 1,488.7 1,482.5 1,344.2 Equals: Disposable personal income......... 10,870.6 10,767.9 10,657.5 10,673.7 10,679.6 10,647.1 10,629.3 10,812.3 Less: Personal outlays..................... 10,595.9 10,585.0 10,567.4 10,527.3 10,397.9 10,315.9 10,212.4 10,266.9 Personal consumption expenditures........ 10,196.4 10,187.1 10,170.9 10,132.4 10,010.3 9,930.7 9,829.5 9,885.9 Durable goods.......................... 1,049.1 1,016.6 1,033.7 998.4 945.5 950.7 942.6 943.5 Nondurable goods....................... 3,063.0 3,068.4 3,042.4 3,022.9 2,934.4 2,843.7 2,739.9 2,776.5 Services............................... 6,084.2 6,102.0 6,094.8 6,111.2 6,130.4 6,136.3 6,147.0 6,166.0 Personal interest payments\1\............ 252.9 250.9 248.9 246.9 244.0 241.0 238.1 235.5 Personal current transfer payments....... 146.7 147.1 147.5 148.0 143.6 144.2 144.8 145.4 To government.......................... 84.0 84.4 84.8 85.3 85.8 86.3 86.9 87.6 To the rest of the world (net)......... 62.7 62.7 62.7 62.7 57.9 57.9 57.9 57.9 Equals: Personal saving.................... 274.7 182.9 90.1 146.4 281.7 331.2 416.8 545.5 Personal saving as a percentage of disposable personal income.............. 2.5 1.7 .8 1.4 2.6 3.1 3.9 5.0 Addenda: Disposable personal income: Total, billions of chained (2000) dollars\2\............................ 8,885.5 8,753.6 8,664.8 8,670.7 8,713.5 8,782.7 8,813.6 8,947.5 Per capita: Current dollars...................... 35,716 35,350 34,957 34,980 34,970 34,837 34,753 35,328 Chained (2000) dollars............... 29,194 28,737 28,421 28,416 28,532 28,737 28,817 29,235 Population (midperiod, thousands)\3\..... 304,360 304,608 304,870 305,138 305,390 305,624 305,848 306,057 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third 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; quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2007 2008\r\ III 07 IV 07 I 08 II 08 III 08\r\ IV 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 11,663.2 12,106.9 11,730.4 11,872.1 11,960.5 12,152.2 12,170.4 12,144.4 Compensation of employees, received...... 7,818.6 8,055.8 7,839.3 7,941.0 8,009.7 8,033.5 8,092.9 8,087.0 Wage and salary disbursements.......... 6,362.0 6,550.8 6,377.7 6,465.5 6,518.0 6,531.3 6,581.8 6,572.1 Private industries................... 5,286.7 5,421.3 5,297.0 5,373.4 5,408.3 5,407.9 5,443.5 5,425.5 Goods-producing industries......... 1,205.4 1,209.2 1,204.3 1,218.2 1,217.7 1,212.7 1,211.7 1,194.7 Manufacturing.................... 746.0 741.5 743.4 750.2 748.4 745.0 742.2 730.6 Services-producing industries...... 4,081.3 4,212.1 4,092.6 4,155.3 4,190.5 4,195.2 4,231.8 4,230.8 Trade, transportation, and utilities....................... 1,035.2 1,046.7 1,035.3 1,048.3 1,050.4 1,048.4 1,050.4 1,037.5 Other services-producing industries...................... 3,046.1 3,165.4 3,057.4 3,106.9 3,140.2 3,146.7 3,181.5 3,193.2 Government........................... 1,075.2 1,129.5 1,080.8 1,092.1 1,109.7 1,123.4 1,138.3 1,146.7 Supplements to wages and salaries...... 1,456.6 1,505.0 1,461.6 1,475.5 1,491.7 1,502.2 1,511.1 1,514.8 Employer contributions for employee pension and insurance funds......... 991.9 1,026.9 996.5 1,005.9 1,015.3 1,024.4 1,031.2 1,036.7 Employer contributions for government social insurance.................... 464.7 478.1 465.1 469.6 476.4 477.8 479.9 478.1 Proprietors' income with inventory valuation and capital consumption adjustments............................. 1,056.2 1,072.7 1,063.8 1,073.8 1,071.7 1,076.9 1,080.5 1,061.5 Farm................................... 44.0 34.5 47.4 47.1 41.6 38.0 32.4 26.2 Nonfarm................................ 1,012.2 1,038.1 1,016.4 1,026.7 1,030.1 1,039.0 1,048.2 1,035.3 Rental income of persons with capital consumption adjustment.................. 40.0 63.8 41.8 38.6 39.1 58.6 68.5 89.1 Personal income receipts on assets....... 2,000.1 2,040.4 2,030.9 2,056.2 2,054.1 2,052.3 2,055.7 1,999.6 Personal interest income............... 1,214.3 1,206.3 1,236.2 1,242.7 1,224.6 1,208.7 1,217.4 1,174.5 Personal dividend income............... 785.8 834.1 794.7 813.5 829.5 843.6 838.3 825.1 Personal current transfer receipts....... 1,713.3 1,870.2 1,720.6 1,737.8 1,778.1 1,926.3 1,872.7 1,903.9 Government social benefits to persons.. 1,681.4 1,835.5 1,688.0 1,704.7 1,745.8 1,893.9 1,831.2 1,871.1 Old-age, survivors, disability, and health insurance benefits........... 999.4 1,058.3 1,008.8 1,009.6 1,032.4 1,050.0 1,068.9 1,081.9 Government unemployment insurance benefits............................ 32.3 52.7 32.5 34.3 38.2 41.4 59.2 72.0 Other................................ 649.6 724.5 646.7 660.9 675.3 802.5 703.1 717.3 Other current transfer receipts, from business (net)........................ 31.9 34.7 32.5 33.1 32.2 32.4 41.5 32.8 Less: Contributions for government social insurance............................... 965.1 996.1 966.0 975.3 992.2 995.4 1,000.0 996.7 Less: Personal current taxes............... 1,492.8 1,461.1 1,501.6 1,520.5 1,535.0 1,346.1 1,470.7 1,492.4 Equals: Disposable personal income......... 10,170.5 10,645.8 10,228.8 10,351.5 10,425.5 10,806.0 10,699.7 10,652.0 Less: Personal outlays..................... 10,113.1 10,452.9 10,182.0 10,309.2 10,404.9 10,538.2 10,559.9 10,308.7 Personal consumption expenditures........ 9,710.2 10,056.8 9,765.6 9,892.7 10,002.3 10,138.0 10,163.5 9,923.5 Durable goods.......................... 1,082.8 1,023.2 1,086.2 1,083.0 1,071.0 1,059.3 1,016.2 946.3 Nondurable goods....................... 2,833.0 2,965.2 2,846.6 2,906.2 2,950.7 3,026.2 3,044.6 2,839.3 Services............................... 5,794.4 6,068.4 5,832.8 5,903.5 5,980.6 6,052.5 6,102.7 6,137.9 Personal interest payments\1\............ 265.4 251.4 278.2 276.7 261.7 253.8 248.9 241.0 Personal current transfer payments....... 137.5 144.7 138.1 139.8 140.8 146.4 147.5 144.2 To government.......................... 81.2 84.4 81.8 82.5 82.9 83.7 84.8 86.3 To the rest of the world (net)......... 56.3 60.3 56.3 57.3 57.9 62.7 62.7 57.9 Equals: Personal saving.................... 57.4 192.9 46.8 42.4 20.6 267.9 139.8 343.2 Personal saving as a percentage of disposable personal income.............. .6 1.8 .5 .4 .2 2.5 1.3 3.2 Addenda: Disposable personal income: Total, billions of chained (2000) dollars\2\............................ 8,644.0 8,756.4 8,671.1 8,683.1 8,667.9 8,891.0 8,696.4 8,769.6 Per capita: Current dollars...................... 33,706 34,958 33,858 34,179 34,351 35,531 35,096 34,854 Chained (2000) dollars............... 28,648 28,754 28,702 28,670 28,560 29,234 28,525 28,694 Population (midperiod, thousands)\3\..... 301,737 304,530 302,108 302,865 303,498 304,128 304,872 305,620 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third 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; months seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\r\ Oct 08\r\ Nov 08\r\ Dec 08\r\ Jan 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 13.8 -93.7 39.9 11.6 -5.7 -50.0 -24.0 44.8 Compensation of employees, received...... 16.2 23.0 31.9 -1.9 4.5 -16.9 -25.8 -2.6 Wage and salary disbursements.......... 12.9 19.7 28.7 -2.4 2.2 -17.0 -25.6 -12.9 Private industries................... 8.1 13.8 24.4 -5.9 -.4 -19.2 -27.0 -25.8 Goods-producing industries......... 2.2 -1.6 1.0 -6.0 -2.6 -8.4 -15.3 -13.0 Manufacturing.................... .7 -.3 -2.7 -3.7 -1.4 -5.8 -9.2 -9.1 Services-producing industries...... 6.0 15.3 23.4 .1 2.2 -10.8 -11.7 -12.8 Trade, transportation, and utilities....................... 3.2 -1.1 3.4 -3.4 -5.3 -5.3 -8.4 3.4 Other services-producing industries...................... 2.8 16.4 19.9 3.5 7.5 -5.3 -3.3 -16.3 Government........................... 4.8 5.9 4.3 3.5 2.6 2.2 1.4 12.9 Supplements to wages and salaries...... 3.4 3.3 3.1 .6 2.3 .1 -.2 10.2 Employer contributions for employee pension and insurance funds......... 3.0 2.4 1.5 1.3 2.4 1.7 1.7 7.0 Employer contributions for government social insurance.................... .5 .9 1.5 -.7 .0 -1.7 -1.8 3.1 Proprietors' income with inventory valuation and capital consumption adjustments............................. 7.4 6.5 -10.2 -8.0 3.6 -17.4 -7.0 -6.9 Farm................................... -2.3 -1.1 -2.5 -2.9 -2.6 -.9 -.5 .2 Nonfarm................................ 9.7 7.6 -7.7 -5.1 6.2 -16.5 -6.4 -7.1 Rental income of persons with capital consumption adjustment.................. 10.0 4.5 4.5 -21.8 30.5 2.7 4.0 -.4 Personal income receipts on assets....... .5 1.3 1.5 1.7 -28.8 -28.8 -29.0 -6.7 Personal interest income............... -4.2 6.4 6.5 6.4 -24.6 -24.7 -24.6 -7.5 Personal dividend income............... 4.7 -5.1 -5.0 -4.8 -4.0 -4.2 -4.4 .8 Personal current transfer receipts....... -19.3 -127.0 15.3 40.5 -15.9 7.5 29.9 66.6 Government social benefits to persons.. -19.4 -127.0 15.2 13.6 10.9 7.4 29.9 66.7 Old-age, survivors, disability, and health insurance benefits........... 5.2 10.4 .1 4.5 2.5 8.3 5.5 36.7 Government unemployment insurance benefits............................ .5 5.6 14.8 5.1 -2.9 -.4 23.0 13.2 Other................................ -25.1 -143.0 .4 3.9 11.4 -.6 1.5 16.8 Other current transfer receipts, from business (net)........................ .0 .1 .1 26.9 -26.8 .1 .0 -.1 Less: Contributions for government social insurance............................... .9 1.9 3.2 -1.1 -.3 -3.0 -3.8 5.1 Less: Personal current taxes............... 215.1 9.0 150.3 -4.6 -11.6 -17.4 -6.2 -138.3 Equals: Disposable personal income......... -201.3 -102.7 -110.4 16.2 5.9 -32.5 -17.8 183.0 Less: Personal outlays..................... 51.6 -10.9 -17.6 -40.1 -129.4 -82.0 -103.5 54.5 Personal consumption expenditures........ 52.2 -9.3 -16.2 -38.5 -122.1 -79.6 -101.2 56.4 Durable goods.......................... -16.4 -32.5 17.1 -35.3 -52.9 5.2 -8.1 .9 Nondurable goods....................... 37.6 5.4 -26.0 -19.5 -88.5 -90.7 -103.8 36.6 Services............................... 30.9 17.8 -7.2 16.4 19.2 5.9 10.7 19.0 Personal interest payments\1\............ -.9 -2.0 -2.0 -2.0 -2.9 -3.0 -2.9 -2.6 Personal current transfer payments....... .3 .4 .4 .5 -4.4 .6 .6 .6 To government.......................... .3 .4 .4 .5 .5 .5 .6 .7 To the rest of the world (net)......... .0 .0 .0 .0 -4.8 .0 .0 .0 Equals: Personal saving.................... -252.8 -91.8 -92.8 56.3 135.3 49.5 85.6 128.7 Addendum: Real disposable personal income, billions of chained (2000) dollars\2\............ -233.6 -131.9 -88.8 5.9 42.8 69.2 30.9 133.9 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third 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; quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2007 2008\r\ III 07 IV 07 I 08 II 08 III 08\r\ IV 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 669.3 443.7 152.9 141.7 88.4 191.7 18.2 -26.0 Compensation of employees, received...... 386.0 237.2 79.2 101.7 68.7 23.8 59.4 -5.9 Wage and salary disbursements.......... 334.8 188.8 67.0 87.8 52.5 13.3 50.5 -9.7 Private industries................... 282.5 134.6 54.5 76.4 34.9 -.4 35.6 -18.0 Goods-producing industries......... 38.2 3.8 3.6 13.9 -.5 -5.0 -1.0 -17.0 Manufacturing.................... 14.8 -4.5 -.6 6.8 -1.8 -3.4 -2.8 -11.6 Services-producing industries...... 244.2 130.8 50.7 62.7 35.2 4.7 36.6 -1.0 Trade, transportation, and utilities....................... 48.5 11.5 -1.2 13.0 2.1 -2.0 2.0 -12.9 Other services-producing industries...................... 195.7 119.3 52.0 49.5 33.3 6.5 34.8 11.7 Government........................... 52.2 54.3 12.7 11.3 17.6 13.7 14.9 8.4 Supplements to wages and salaries...... 51.3 48.4 12.2 13.9 16.2 10.5 8.9 3.7 Employer contributions for employee pension and insurance funds......... 35.1 35.0 8.8 9.4 9.4 9.1 6.8 5.5 Employer contributions for government social insurance.................... 16.2 13.4 3.4 4.5 6.8 1.4 2.1 -1.8 Proprietors' income with inventory valuation and capital consumption adjustments............................. 41.5 16.5 13.6 10.0 -2.1 5.2 3.6 -19.0 Farm................................... 27.8 -9.5 5.1 -.3 -5.5 -3.6 -5.6 -6.2 Nonfarm................................ 13.6 25.9 8.5 10.3 3.4 8.9 9.2 -12.9 Rental income of persons with capital consumption adjustment.................. -4.3 23.8 -2.8 -3.2 .5 19.5 9.9 20.6 Personal income receipts on assets....... 175.3 40.3 48.4 25.3 -2.1 -1.8 3.4 -56.1 Personal interest income............... 88.9 -8.0 30.1 6.5 -18.1 -15.9 8.7 -42.9 Personal dividend income............... 86.4 48.3 18.2 18.8 16.0 14.1 -5.3 -13.2 Personal current transfer receipts....... 110.3 156.9 21.4 17.2 40.3 148.2 -53.6 31.2 Government social benefits to persons.. 103.3 154.1 20.5 16.7 41.1 148.1 -62.7 39.9 Old-age, survivors, disability, and health insurance benefits........... 60.5 58.9 11.3 .8 22.8 17.6 18.9 13.0 Government unemployment insurance benefits............................ 2.4 20.4 1.3 1.8 3.9 3.2 17.8 12.8 Other................................ 40.3 74.9 7.9 14.2 14.4 127.2 -99.4 14.2 Other current transfer receipts, from business (net)........................ 7.0 2.8 .8 .6 -.9 .2 9.1 -8.7 Less: Contributions for government social insurance............................... 39.6 31.0 6.9 9.3 16.9 3.2 4.6 -3.3 Less: Personal current taxes............... 139.6 -31.7 12.2 18.9 14.5 -188.9 124.6 21.7 Equals: Disposable personal income......... 529.8 475.3 140.8 122.7 74.0 380.5 -106.3 -47.7 Less: Personal outlays..................... 543.1 339.8 125.1 127.2 95.7 133.3 21.7 -251.2 Personal consumption expenditures........ 503.0 346.6 108.1 127.1 109.6 135.7 25.5 -240.0 Durable goods.......................... 30.7 -59.6 .9 -3.2 -12.0 -11.7 -43.1 -69.9 Nondurable goods....................... 147.8 132.2 28.9 59.6 44.5 75.5 18.4 -205.3 Services............................... 324.5 274.0 78.4 70.7 77.1 71.9 50.2 35.2 Personal interest payments\1\............ 30.0 -14.0 15.6 -1.5 -15.0 -7.9 -4.9 -7.9 Personal current transfer payments....... 10.1 7.2 1.2 1.7 1.0 5.6 1.1 -3.3 To government.......................... 5.0 3.2 1.0 .7 .4 .8 1.1 1.5 To the rest of the world (net)......... 5.2 4.0 .3 1.0 .6 4.8 .0 -4.8 Equals: Personal saving.................... -13.3 135.5 15.7 -4.4 -21.8 247.3 -128.1 203.4 Addendum: Real disposable personal income, billions of chained (2000) dollars\2\............ 237.0 112.4 66.6 12.0 -15.2 223.1 -194.6 73.2 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third 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) [Months seasonally adjusted at monthly rates] ----------------------------------------------------------------------------------------------------------------------------------- Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\r\ Oct 08\r\ Nov 08\r\ Dec 08\r\ Jan 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Based on current-dollar measures ---------------------------------------------------------------------------------------- Personal income............................ .1 -.8 .3 .1 .0 -.4 -.2 .4 Compensation of employees, received...... .2 .3 .4 .0 .1 -.2 -.3 .0 Wage and salary disbursements.......... .2 .3 .4 .0 .0 -.3 -.4 -.2 Supplements to wages and salaries...... .2 .2 .2 .0 .2 .0 .0 .7 Proprietors' income with inventory valuation and capital consumption adjustments............................. .7 .6 -.9 -.7 .3 -1.6 -.7 -.7 Rental income of persons with capital consumption adjustment.................. 17.0 6.6 6.2 -28.1 54.8 3.1 4.6 -.4 Personal income receipts on assets....... .0 .1 .1 .1 -1.4 -1.4 -1.5 -.3 Personal interest income............... -.4 .5 .5 .5 -2.0 -2.1 -2.1 -.6 Personal dividend income............... .6 -.6 -.6 -.6 -.5 -.5 -.5 .1 Personal current transfer receipts....... -1.0 -6.4 .8 2.2 -.8 .4 1.6 3.5 Less: Contributions for government social insurance............................... .1 .2 .3 -.1 .0 -.3 -.4 .5 Less: Personal current taxes............... 18.7 .7 11.0 -.3 -.8 -1.2 -.4 -9.3 Equals: Disposable personal income......... -1.8 -.9 -1.0 .2 .1 -.3 -.2 1.7 Addenda: Personal consumption expenditures........ .5 -.1 -.2 -.4 -1.2 -.8 -1.0 .6 Durable goods.......................... -1.5 -3.1 1.7 -3.4 -5.3 .6 -.9 .1 Nondurable goods....................... 1.2 .2 -.8 -.6 -2.9 -3.1 -3.6 1.3 Services............................... .5 .3 -.1 .3 .3 .1 .2 .3 ---------------------------------------------------------------------------------------- Based on chained (2000) dollar measures ---------------------------------------------------------------------------------------- Real disposable personal income.......... -2.6 -1.5 -1.0 .1 .5 .8 .4 1.5 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third quarter of 2008. Table 6.--Personal Income and Its Disposition, Percent Change from Preceding Period (Years and Quarters) [Quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2007 2008\r\ III 07 IV 07 I 08 II 08 III 08\r\ IV 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Based on current-dollar measures ---------------------------------------------------------------------------------------- Personal income............................ 6.1 3.8 5.4 4.9 3.0 6.6 .6 -.9 Compensation of employees, received...... 5.2 3.0 4.1 5.3 3.5 1.2 3.0 -.3 Wage and salary disbursements.......... 5.6 3.0 4.3 5.6 3.3 .8 3.1 -.6 Supplements to wages and salaries...... 3.7 3.3 3.4 3.9 4.5 2.8 2.4 1.0 Proprietors' income with inventory valuation and capital consumption adjustments............................. 4.1 1.6 5.3 3.8 -.8 2.0 1.3 -6.9 Rental income of persons with capital consumption adjustment.................. -9.6 59.4 -22.7 -27.3 5.3 401.3 87.6 186.2 Personal income receipts on assets....... 9.6 2.0 10.1 5.1 -.4 -.3 .7 -10.5 Personal interest income............... 7.9 -.7 10.4 2.1 -5.7 -5.1 2.9 -13.4 Personal dividend income............... 12.4 6.1 9.8 9.8 8.1 7.0 -2.5 -6.1 Personal current transfer receipts....... 6.9 9.2 5.1 4.1 9.6 37.8 -10.7 6.8 Less: Contributions for government social insurance............................... 4.3 3.2 2.9 3.9 7.1 1.3 1.9 -1.3 Less: Personal current taxes............... 10.3 -2.1 3.3 5.1 3.9 -40.8 42.5 6.0 Equals: Disposable personal income......... 5.5 4.7 5.7 4.9 2.9 15.4 -3.9 -1.8 Addenda: Personal consumption expenditures........ 5.5 3.6 4.6 5.3 4.5 5.5 1.0 -9.1 Durable goods.......................... 2.9 -5.5 .3 -1.2 -4.3 -4.3 -15.3 -24.8 Nondurable goods....................... 5.5 4.7 4.2 8.7 6.3 10.6 2.4 -24.4 Services............................... 5.9 4.7 5.6 4.9 5.3 4.9 3.4 2.3 ---------------------------------------------------------------------------------------- Based on chained (2000) dollar measures ---------------------------------------------------------------------------------------- Real disposable personal income.......... 2.8 1.3 3.1 .6 -.7 10.7 -8.5 3.4 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third quarter of 2008. Table 7.--Real Personal Consumption Expenditures by Major Type of Product (Months) ----------------------------------------------------------------------------------------------------------------------------------- Jun 08 Jul 08 Aug 08 Sep 08 Oct 08\r\ Nov 08\r\ Dec 08\r\ Jan 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Billions of chained (2000) dollars, seasonally adjusted at annual rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 8,334.4 8,281.4 8,269.3 8,231.0 8,167.4 8,191.8 8,150.5 8,180.9 Durable goods............................ 1,217.0 1,178.5 1,200.4 1,161.4 1,102.1 1,114.1 1,109.5 1,111.8 Nondurable goods......................... 2,415.9 2,392.0 2,378.5 2,358.3 2,325.9 2,338.0 2,294.3 2,310.4 Services................................. 4,717.9 4,716.6 4,703.9 4,713.4 4,724.1 4,727.5 4,732.6 4,744.5 ---------------------------------------------------------------------------------------- Change from preceding period in billions of chained (2000) dollars, seasonally adjusted at annual rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... -20.7 -53.0 -12.1 -38.3 -63.6 24.4 -41.3 30.4 Durable goods............................ -20.1 -38.5 21.9 -39.0 -59.3 12.0 -4.6 2.3 Nondurable goods......................... -11.4 -23.9 -13.5 -20.2 -32.4 12.1 -43.7 16.1 Services................................. 5.1 -1.3 -12.7 9.5 10.7 3.4 5.1 11.9 ---------------------------------------------------------------------------------------- Percent change from preceding period in chained (2000) dollars, seasonally adjusted at monthly rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... -.2 -.6 -.1 -.5 -.8 .3 -.5 .4 Durable goods............................ -1.6 -3.2 1.9 -3.2 -5.1 1.1 -.4 .2 Nondurable goods......................... -.5 -1.0 -.6 -.8 -1.4 .5 -1.9 .7 Services................................. .1 .0 -.3 .2 .2 .1 .1 .3 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised Table 8.--Real Personal Consumption Expenditures by Major Type of Product (Years and Quarters) [Quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2007 2008\r\ III 07 IV 07 I 08 II 08 III 08 IV 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Billions of chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 8,252.8 8,272.0 8,278.5 8,298.2 8,316.1 8,341.3 8,260.6 8,169.9 Durable goods............................ 1,242.4 1,188.5 1,249.4 1,250.6 1,237.0 1,228.3 1,180.1 1,108.6 Nondurable goods......................... 2,392.6 2,378.6 2,398.6 2,400.2 2,397.9 2,420.7 2,376.3 2,319.4 Services................................. 4,646.2 4,714.0 4,659.8 4,676.1 4,704.3 4,712.1 4,711.3 4,728.1 ---------------------------------------------------------------------------------------- Change from preceding period in billions of chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 223.8 19.2 41.2 19.7 17.9 25.2 -80.7 -90.7 Durable goods............................ 57.3 -53.9 7.1 1.2 -13.6 -8.7 -48.2 -71.5 Nondurable goods......................... 57.3 -14.0 7.1 1.6 -2.3 22.8 -44.4 -56.9 Services................................. 116.3 67.8 27.1 16.3 28.2 7.8 -.8 16.8 ---------------------------------------------------------------------------------------- Percent change from preceding period in chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 2.8 .2 2.0 1.0 .9 1.2 -3.8 -4.3 Durable goods............................ 4.8 -4.3 2.3 .4 -4.3 -2.8 -14.8 -22.1 Nondurable goods......................... 2.5 -.6 1.2 .3 -.4 3.9 -7.1 -9.2 Services................................. 2.6 1.5 2.4 1.4 2.4 .7 -.1 1.4 ----------------------------------------------------------------------------------------------------------------------------------- r Revised Table 9.--Price Indexes for Personal Consumption Expenditures: Level and Percent Change From Preceding Period (Months) ----------------------------------------------------------------------------------------------------------------------------------- Jun 08 Jul 08 Aug 08 Sep 08 Oct 08\r\ Nov 08\r\ Dec 08\r\ Jan 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Chain-type price indexes (2000=100), seasonally adjusted ---------------------------------------------------------------------------------------- Personal consumption expenditures (PCE).... 122.346 123.017 123.002 123.106 122.570 121.234 120.606 120.847 Durable goods............................ 86.205 86.264 86.110 85.957 85.785 85.333 84.952 84.855 Nondurable goods......................... 126.793 128.282 127.920 128.186 126.184 121.649 119.442 120.191 Services................................. 128.967 129.379 129.574 129.661 129.776 129.805 129.891 129.966 Addenda: PCE excluding food and energy............ 117.072 117.286 117.493 117.664 117.710 117.712 117.689 117.830 Market-based PCE\1\...................... 120.574 121.348 121.292 121.406 120.803 119.240 118.515 118.781 Market-based PCE excluding food and energy\1\........................... 113.775 114.025 114.230 114.427 114.510 114.512 114.495 114.648 ---------------------------------------------------------------------------------------- Percent change from preceding period in price indexes, seasonally adjusted at monthly rates ---------------------------------------------------------------------------------------- PCE........................................ .8 .5 .0 .1 -.4 -1.1 -.5 .2 Durable goods............................ .1 .1 -.2 -.2 -.2 -.5 -.4 -.1 Nondurable goods......................... 1.7 1.2 -.3 .2 -1.6 -3.6 -1.8 .6 Services................................. .4 .3 .2 .1 .1 .0 .1 .1 Addenda: PCE excluding food and energy............ .3 .2 .2 .1 .0 .0 .0 .1 Market-based PCE\1\...................... .8 .6 .0 .1 -.5 -1.3 -.6 .2 Market-based PCE excluding food and energy\1\........................... .3 .2 .2 .2 .1 .0 .0 .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. Table 10.--Real Disposable Personal Income and Real Personal Consumption Expenditures: Percent Change From Month One Year Ago ----------------------------------------------------------------------------------------------------------------------------------- Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\r\ Oct 08\r\ Nov 08\r\ Dec 08\r\ Jan 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- Disposable personal income................. 3.2 1.3 -.2 -.2 .3 1.3 1.4 3.3 Personal consumption expenditures.......... 1.1 .2 -.2 -.6 -1.3 -1.4 -1.9 -1.6 Durable goods............................ -1.6 -4.4 -4.4 -7.8 -12.3 -11.0 -10.7 -10.3 Nondurable goods......................... .7 -.6 -.5 -1.7 -2.9 -2.8 -4.4 -3.5 Services................................. 1.7 1.4 .7 1.2 1.5 1.0 .9 .8 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third quarter of 2008. Table 11.--Price Indexes for Personal Consumption Expenditures: Percent Change From Month One Year Ago ----------------------------------------------------------------------------------------------------------------------------------- Jun 08 Jul 08 Aug 08 Sep 08 Oct 08\r\ Nov 08\r\ Dec 08\r\ Jan 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal consumption expenditures (PCE).... 4.1 4.5 4.4 4.1 3.3 1.6 .8 .7 Durable goods............................ -1.3 -1.1 -.9 -.9 -1.2 -1.5 -1.7 -1.9 Nondurable goods......................... 7.2 8.2 8.0 7.7 5.6 .1 -2.3 -2.3 Services................................. 3.5 3.7 3.5 3.2 3.0 2.8 2.7 2.5 Addenda: PCE excluding food and energy............ 2.3 2.4 2.4 2.3 2.1 1.9 1.7 1.6 Market-based PCE\1\...................... 4.1 4.6 4.6 4.3 3.5 1.5 .6 .4 Market-based PCE excluding food and energy\1\........................... 2.0 2.1 2.2 2.1 2.0 1.9 1.7 1.5 ----------------------------------------------------------------------------------------------------------------------------------- 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.