EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, JUNE 27, 2008 James E. Rankin: (202) 606-5301 (Personal Income)BEA 08-31 Michael Armah: (202) 606-5302 (Personal Outlays) PERSONAL INCOME AND OUTLAYS: MAY 2008 Personal income increased $225.7 billion, or 1.9 percent, and disposable personal income (DPI) increased $600.3 billion, or 5.7 percent, in May, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $77.4 billion, or 0.8 percent. In April, personal income increased $33.5 billion, or 0.3 percent, DPI increased $39.8 billion, or 0.4 percent, and PCE increased $41.1 billion, or 0.4 percent, based on revised estimates. Real disposable income increased 5.3 percent in May, compared with an increase of 0.1 percent in April. Real PCE increased 0.4 percent, compared with an increase of 0.2 percent. 2008 Jan. Feb. Mar. Apr. May (Percent change from preceding month) Personal income, current dollars 0.2 0.5 0.3 0.3 1.9 Disposable personal income: Current dollars 0.4 0.5 0.3 0.4 5.7 Chained (2000) dollars 0.1 0.3 0.0 0.1 5.3 Personal consumption expenditures: Current dollars 0.5 0.1 0.5 0.4 0.8 Chained (2000) dollars 0.2 -0.1 0.2 0.2 0.4 The May and April changes in disposable personal income (DPI) -- personal income less personal current taxes -- were boosted as a result of provisions of the Economic Stimulus Act of 2008. The federal government issued rebate payments of $48.1 billion in May ($577.1 billion at an annual rate) and $1.9 billion in April ($23.3 billion at an annual rate). These payments reduced personal current taxes and increased government social benefit payments. As a result, disposable personal income increased substantially. Excluding these special factors, which are discussed more fully below, disposable personal income increased $46.4 billion or 0.4 percent in May, after increasing $16.6 billion, or 0.2 percent, in April. Wages and salaries Private wage and salary disbursements increased $15.9 billion in May, in contrast to a decrease of $9.6 billion in April. Goods-producing industries' payrolls increased $1.7 billion, in contrast to a decrease of $6.8 billion; manufacturing payrolls increased $1.1 billion, in contrast to a decrease of $2.7 billion. Services-producing industries' payrolls increased $14.3 billion, in contrast to a decrease of $2.9 billion. Government wage and salary disbursements increased $3.7 billion, compared with an increase of $4.0 billion. Other personal income Supplements to wages and salaries increased $4.3 billion in May, the same increase as in April. Proprietors' income increased $6.4 billion in May, compared with an increase of $4.3 billion in April. Farm proprietors' income increased $3.0 billion, compared with an increase of $2.1 billion. Nonfarm proprietors' income increased $3.4 billion, compared with an increase of $2.2 billion. Rental income of persons increased $10.0 billion, compared with an increase of $9.8 billion. Personal income receipts on assets (personal interest income plus personal dividend income) increased $1.0 billion, compared with an increase of $0.6 billion. Personal current transfer receipts increased $186.8 billion in May, compared with an increase of $19.3 billion in April. Provisions of the Economic Stimulus Act of 2008 boosted the level of personal current transfer receipts by $179.6 billion at an annual rate in May and $7.8 billion at an annual rate in April. The increase reflected payments to individuals who either paid no income tax or whose payment exceeded the amount of income tax paid (see box below). Contributions for government social insurance -- a subtraction in calculating personal income -- increased $2.4 billion in May, in contrast to a decrease of $0.9 billion in April. Personal current taxes and disposable personal income Personal current taxes decreased $374.5 billion in May, compared with a decrease of $6.4 billion in April. A reduction in federal income taxes accounted for the decreases in May and in April. Provisions of the Economic Stimulus Act of 2008 reduced the level of personal current taxes by $397.5 billion at an annual rate in May and $15.5 billion at an annual rate in April. The reduction in current personal taxes reflected rebate payments to eligible individual taxpayers (see box below). Disposable personal income (DPI) -- personal income less personal current taxes -- increased $600.3 billion, or 5.7 percent, in May, compared with an increase of $39.8 billion, or 0.4 percent, in April. Personal outlays and personal saving Personal outlays -- PCE, personal interest payments, and personal current transfer payments increased $84.3 billion in May, compared with an increase of $47.9 billion in April. PCE increased $77.4 billion, compared with an increase of $41.1 billion. Personal saving -- DPI less personal outlays -- was $555.7 billion in May, compared with $39.7 billion in April. Personal saving as a percentage of disposable personal income was 5.0 percent in May, compared with 0.4 percent in April. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods. For more information, see the FAQs on "Personal Saving" on BEA's Web site. For a comparison of personal saving in BEA's national income and product accounts with personal saving in the Federal Reserve Board's flow of funds accounts and data on changes in net worth (which help finance consumption), go to http://www.bea.gov/bea/dn/nipaweb/Nipa-Frb.asp. Real DPI and real PCE Real DPI -- DPI adjusted to remove price changes -- increased 5.3 percent in May, compared with an increase of 0.1 percent in April. Real PCE -- PCE adjusted to remove price changes -- increased 0.4 percent in May, compared with an increase of 0.2 percent in April. Purchases of durable goods increased 0.1 percent, compared with an increase of less than 0.1 percent. Purchases of nondurable goods increased 0.4 percent in May, the same increase as in April. Purchases of services increased 0.4 percent in May, compared with an increase of 0.1 percent in April. The price index for PCE increased 0.4 percent in May, compared with an increase of 0.2 percent in April. Prices, excluding food and energy, increased 0.1 percent in May, the same increase as in April. Revisions Estimates have been revised for January through April. Changes in personal income, current- dollar and chained (2000) dollar DPI, and current-dollar and chained (2000) dollar PCE for March and April -- revised and as published in last month's release -- are shown below. Change from preceding month March April Previous Revised Previous Revised Previous Revised Previous Revised (Billions of dollars) (Percent) (Billions of dollars) (Percent) Personal Income: Current dollars...................... 44.7 40.9 0.4 0.3 20.1 33.5 0.2 0.3 Disposable personal income: Current dollars...................... 35.4 31.8 0.3 0.3 23.4 39.8 0.2 0.4 Chained (2000) dollars............... 2.7 -1.0 0.0 0.0 -1.0 13.0 0.0 0.1 Personal consumption expenditures: Current dollars...................... 41.7 54.8 0.4 0.5 21.4 41.1 0.2 0.4 Chained (2000) dollars............... 9.1 19.4 0.1 0.2 -1.7 14.8 0.0 0.2 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 2008. The majority of rebates will be sent during the initial round of payments, which began April 28, 2008, and will continue on a weekly basis through mid-July 2008. In the NIPAs, rebates for residents of the 50 states and the District of Columbia will be 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 will be 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) will be treated as a government social benefit payment to persons in the NIPAs. Annual Revision of the National Income and Product Accounts As part of the annual revision of the national income and product accounts, revised estimates of personal income and outlays covering January 2005 through May 2008 will be released along with preliminary estimates for June 2008 on August 4. An article describing the revision will appear in the August 2008 issue of the Survey of Current Business. 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 --August 4, 2008 at 8:30 A.M. EDT for Personal Income and Outlays for June. Table 1.--Personal Income and Its Disposition (Months) [Billions of dollars; months seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- Oct 07 Nov 07 Dec 07 Jan 08\r\ Feb 08\r\ Mar 08\r\ Apr 08\r\ May 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 11,831.4 11,875.8 11,935.6 11,961.1 12,017.2 12,058.1 12,091.6 12,317.3 Compensation of employees, received...... 7,946.3 7,986.8 8,022.1 8,069.0 8,098.8 8,134.2 8,132.9 8,156.8 Wage and salary disbursements.......... 6,435.2 6,470.0 6,500.0 6,534.4 6,558.3 6,587.9 6,582.2 6,601.9 Private industries................... 5,354.2 5,385.7 5,411.1 5,435.0 5,453.8 5,480.1 5,470.5 5,486.4 Goods-producing industries......... 1,224.1 1,233.0 1,233.7 1,234.9 1,236.5 1,241.7 1,234.9 1,236.6 Manufacturing.................... 756.5 762.8 762.3 763.7 764.9 767.8 765.1 766.2 Services-producing industries...... 4,130.1 4,152.7 4,177.4 4,200.1 4,217.4 4,238.4 4,235.5 4,249.8 Trade, transportation, and utilities....................... 1,042.0 1,045.3 1,053.2 1,054.7 1,054.8 1,059.1 1,056.8 1,056.3 Other services-producing industries...................... 3,088.2 3,107.5 3,124.2 3,145.4 3,162.5 3,179.3 3,178.8 3,193.5 Government........................... 1,080.9 1,084.3 1,088.9 1,099.4 1,104.4 1,107.8 1,111.8 1,115.5 Supplements to wages and salaries...... 1,511.1 1,516.8 1,522.1 1,534.6 1,540.5 1,546.3 1,550.6 1,554.9 Employer contributions for employee pension and insurance funds......... 1,030.7 1,034.3 1,037.7 1,044.1 1,048.5 1,052.5 1,057.4 1,060.8 Employer contributions for government social insurance.................... 480.4 482.5 484.3 490.6 492.0 493.8 493.2 494.1 Proprietors' income with inventory valuation and capital consumption adjustments............................. 1,050.6 1,059.8 1,057.4 1,062.4 1,055.1 1,050.0 1,054.3 1,060.7 Farm................................... 42.1 43.7 45.7 41.4 37.9 32.7 34.8 37.8 Nonfarm................................ 1,008.5 1,016.1 1,011.7 1,021.1 1,017.2 1,017.3 1,019.5 1,022.9 Rental income of persons with capital consumption adjustment.................. 74.0 77.8 81.6 81.3 80.8 80.7 90.5 100.5 Personal income receipts on assets....... 1,996.5 1,999.9 2,003.1 2,003.3 2,004.5 2,005.3 2,005.9 2,006.9 Personal interest income............... 1,177.0 1,173.2 1,169.4 1,165.3 1,161.1 1,156.9 1,153.1 1,149.2 Personal dividend income............... 819.5 826.6 833.7 838.1 843.4 848.4 852.8 857.6 Personal current transfer receipts....... 1,754.0 1,746.0 1,769.5 1,757.5 1,793.6 1,807.4 1,826.7 2,013.5 Government social benefits to persons.. 1,725.9 1,717.9 1,741.4 1,729.4 1,765.5 1,779.2 1,798.5 1,985.2 Old-age, survivors, disability, and health insurance benefits........... 1,035.8 1,027.1 1,045.3 1,031.0 1,064.3 1,074.8 1,071.7 1,080.9 Government unemployment insurance benefits............................ 31.5 32.3 33.3 33.4 34.6 35.7 37.1 38.1 Other................................ 658.5 658.5 662.7 665.0 666.6 668.7 689.7 866.2 Other current transfer receipts, from business (net)........................ 28.1 28.1 28.2 28.1 28.1 28.2 28.2 28.3 Less: Contributions for government social insurance............................... 989.9 994.4 998.2 1,012.5 1,015.7 1,019.5 1,018.6 1,021.0 Less: Personal current taxes............... 1,504.3 1,513.0 1,520.8 1,506.4 1,514.4 1,523.5 1,517.1 1,142.6 Equals: Disposable personal income......... 10,327.1 10,362.9 10,414.7 10,454.7 10,502.8 10,534.6 10,574.4 11,174.7 Less: Personal outlays..................... 10,280.9 10,373.0 10,392.8 10,437.0 10,437.0 10,486.8 10,534.7 10,619.0 Personal consumption expenditures........ 9,865.9 9,960.7 9,983.2 10,032.0 10,037.1 10,091.9 10,133.0 10,210.4 Durable goods.......................... 1,092.8 1,083.0 1,071.7 1,066.5 1,069.4 1,060.6 1,057.5 1,055.6 Nondurable goods....................... 2,868.4 2,920.2 2,924.8 2,943.8 2,936.8 2,969.1 2,989.3 3,024.7 Services............................... 5,904.7 5,957.5 5,986.7 6,021.7 6,030.8 6,062.2 6,086.3 6,130.1 Personal interest payments\1\............ 275.6 272.5 269.5 263.9 258.4 252.8 259.2 265.6 Personal current transfer payments....... 139.4 139.7 140.1 141.1 141.6 142.0 142.5 143.0 To government.......................... 88.1 88.5 88.9 89.3 89.7 90.2 90.7 91.2 To the rest of the world (net)......... 51.2 51.2 51.2 51.8 51.8 51.8 51.8 51.8 Equals: Personal saving.................... 46.2 -10.1 21.9 17.7 65.8 47.9 39.7 555.7 Personal saving as a percentage of disposable personal income.............. .4 -.1 .2 .2 .6 .5 .4 5.0 Addenda: Disposable personal income: Total, billions of chained (2000) dollars\2\............................ 8,721.7 8,697.1 8,716.5 8,724.4 8,751.9 8,750.9 8,763.9 9,224.1 Per capita: Current dollars...................... 34,084 34,175 34,320 34,428 34,564 34,646 34,752 36,696 Chained (2000) dollars............... 28,785 28,682 28,724 28,730 28,802 28,780 28,801 30,290 Population (midperiod, thousands)\3\..... 302,989 303,228 303,457 303,670 303,866 304,068 304,287 304,523 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised 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] ----------------------------------------------------------------------------------------------------------------------------------- 2006 2007 IV 06 I 07 II 07 III 07 IV 07 I 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 10,983.4 11,665.6 11,200.2 11,469.2 11,577.3 11,735.0 11,880.9 12,012.1 Compensation of employees, received...... 7,440.8 7,858.6 7,599.9 7,764.9 7,801.9 7,882.7 7,985.0 8,100.7 Wage and salary disbursements.......... 6,018.2 6,366.1 6,153.0 6,294.4 6,318.9 6,382.7 6,468.4 6,560.2 Private industries................... 4,997.6 5,298.3 5,115.7 5,242.7 5,256.9 5,309.8 5,383.7 5,456.3 Goods-producing industries......... 1,166.8 1,217.3 1,191.4 1,208.9 1,212.6 1,217.5 1,230.3 1,237.7 Manufacturing.................... 731.0 756.2 743.3 755.4 754.1 754.7 760.5 765.5 Services-producing industries...... 3,830.8 4,081.0 3,924.4 4,033.9 4,044.3 4,092.3 4,153.4 4,218.6 Trade, transportation, and utilities....................... 985.1 1,033.5 1,002.2 1,020.0 1,033.7 1,033.3 1,046.8 1,056.2 Other services-producing industries...................... 2,845.7 3,047.5 2,922.2 3,013.8 3,010.6 3,059.0 3,106.6 3,162.4 Government........................... 1,020.6 1,067.8 1,037.2 1,051.7 1,061.9 1,072.9 1,084.7 1,103.9 Supplements to wages and salaries...... 1,422.6 1,492.5 1,446.9 1,470.5 1,483.0 1,500.0 1,516.6 1,540.5 Employer contributions for employee pension and insurance funds......... 970.7 1,016.8 986.7 999.2 1,010.9 1,022.7 1,034.3 1,048.3 Employer contributions for government social insurance.................... 451.8 475.8 460.2 471.3 472.1 477.3 482.4 492.1 Proprietors' income with inventory valuation and capital consumption adjustments............................. 1,006.7 1,042.6 1,009.8 1,027.4 1,038.4 1,048.7 1,055.9 1,055.9 Farm................................... 19.4 36.2 23.9 29.1 33.1 38.6 43.8 37.3 Nonfarm................................ 987.4 1,006.4 985.8 998.3 1,005.3 1,010.0 1,012.1 1,018.5 Rental income of persons with capital consumption adjustment.................. 54.5 65.4 50.9 53.2 62.1 68.4 77.8 80.9 Personal income receipts on assets....... 1,796.5 1,947.2 1,836.6 1,882.9 1,930.0 1,976.2 1,999.8 2,004.4 Personal interest income............... 1,100.2 1,154.7 1,102.8 1,126.1 1,148.4 1,171.1 1,173.2 1,161.1 Personal dividend income............... 696.3 792.5 733.8 756.8 781.6 805.0 826.6 843.3 Personal current transfer receipts....... 1,612.5 1,731.7 1,647.7 1,710.7 1,717.1 1,742.3 1,756.5 1,786.2 Government social benefits to persons.. 1,585.3 1,703.8 1,618.0 1,683.1 1,689.4 1,714.4 1,728.4 1,758.0 Old-age, survivors, disability, and health insurance benefits........... 946.4 1,022.5 972.0 999.4 1,020.1 1,034.6 1,036.1 1,056.7 Government unemployment insurance benefits............................ 29.9 31.9 30.3 31.8 31.7 31.7 32.4 34.6 Other................................ 609.0 649.4 615.7 651.8 637.6 648.1 659.9 666.8 Other current transfer receipts, from business (net)........................ 27.2 27.9 29.7 27.6 27.8 28.0 28.1 28.1 Less: Contributions for government social insurance............................... 927.6 979.9 944.6 969.8 972.2 983.2 994.1 1,015.9 Less: Personal current taxes............... 1,354.3 1,483.7 1,401.0 1,454.7 1,477.6 1,489.8 1,512.7 1,514.8 Equals: Disposable personal income......... 9,629.1 10,181.9 9,799.2 10,014.5 10,099.7 10,245.2 10,368.2 10,497.4 Less: Personal outlays..................... 9,590.3 10,134.1 9,757.2 9,917.5 10,069.2 10,200.9 10,348.9 10,453.6 Personal consumption expenditures........ 9,224.5 9,734.2 9,373.7 9,540.5 9,674.0 9,785.7 9,936.6 10,053.7 Durable goods.......................... 1,048.9 1,078.2 1,056.5 1,074.0 1,074.7 1,081.6 1,082.5 1,065.5 Nondurable goods....................... 2,688.0 2,833.2 2,705.4 2,759.4 2,822.7 2,846.3 2,904.5 2,949.9 Services............................... 5,487.6 5,822.8 5,611.8 5,707.1 5,776.5 5,857.8 5,949.7 6,038.2 Personal interest payments\1\............ 238.0 262.8 251.6 243.3 259.5 275.8 272.5 258.4 Personal current transfer payments....... 127.8 137.1 131.8 133.7 135.7 139.3 139.7 141.6 To government.......................... 78.9 86.1 81.2 83.4 85.3 87.1 88.5 89.7 To the rest of the world (net)......... 48.9 51.1 50.6 50.4 50.5 52.2 51.2 51.8 Equals: Personal saving.................... 38.8 47.8 42.0 97.0 30.5 44.4 19.3 43.8 Personal saving as a percentage of disposable personal income.............. .4 .5 .4 1.0 .3 .4 .2 .4 Addenda: Disposable personal income: Total, billions of chained (2000) dollars\2\............................ 8,396.9 8,658.6 8,510.7 8,623.9 8,607.1 8,692.1 8,711.7 8,742.4 Per capita: Current dollars...................... 32,183 33,705 32,626 33,270 33,480 33,874 34,193 34,546 Chained (2000) dollars............... 28,064 28,663 28,336 28,650 28,532 28,739 28,730 28,770 Population (midperiod, thousands)\3\..... 299,199 302,087 300,351 301,004 301,667 302,452 303,225 303,868 ----------------------------------------------------------------------------------------------------------------------------------- r Revised 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] ----------------------------------------------------------------------------------------------------------------------------------- Oct 07 Nov 07 Dec 07 Jan 08\r\ Feb 08\r\ Mar 08\r\ Apr 08\r\ May 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 45.9 44.4 59.8 25.5 56.1 40.9 33.5 225.7 Compensation of employees, received...... 28.2 40.5 35.3 46.9 29.8 35.4 -1.3 23.9 Wage and salary disbursements.......... 22.3 34.8 30.0 34.4 23.9 29.6 -5.7 19.7 Private industries................... 18.5 31.5 25.4 23.9 18.8 26.3 -9.6 15.9 Goods-producing industries......... 4.5 8.9 .7 1.2 1.6 5.2 -6.8 1.7 Manufacturing.................... 2.3 6.3 -.5 1.4 1.2 2.9 -2.7 1.1 Services-producing industries...... 14.1 22.6 24.7 22.7 17.3 21.0 -2.9 14.3 Trade, transportation, and utilities....................... 5.1 3.3 7.9 1.5 .1 4.3 -2.3 -.5 Other services-producing industries...................... 9.1 19.3 16.7 21.2 17.1 16.8 -.5 14.7 Government........................... 3.7 3.4 4.6 10.5 5.0 3.4 4.0 3.7 Supplements to wages and salaries...... 5.9 5.7 5.3 12.5 5.9 5.8 4.3 4.3 Employer contributions for employee pension and insurance funds......... 4.5 3.6 3.4 6.4 4.4 4.0 4.9 3.4 Employer contributions for government social insurance.................... 1.4 2.1 1.8 6.3 1.4 1.8 -.6 .9 Proprietors' income with inventory valuation and capital consumption adjustments............................. 6.7 9.2 -2.4 5.0 -7.3 -5.1 4.3 6.4 Farm................................... 1.1 1.6 2.0 -4.3 -3.5 -5.2 2.1 3.0 Nonfarm................................ 5.6 7.6 -4.4 9.4 -3.9 .1 2.2 3.4 Rental income of persons with capital consumption adjustment.................. 3.9 3.8 3.8 -.3 -.5 -.1 9.8 10.0 Personal income receipts on assets....... 3.3 3.4 3.2 .2 1.2 .8 .6 1.0 Personal interest income............... -3.8 -3.8 -3.8 -4.1 -4.2 -4.2 -3.8 -3.9 Personal dividend income............... 7.1 7.1 7.1 4.4 5.3 5.0 4.4 4.8 Personal current transfer receipts....... 6.9 -8.0 23.5 -12.0 36.1 13.8 19.3 186.8 Government social benefits to persons.. 6.9 -8.0 23.5 -12.0 36.1 13.7 19.3 186.7 Old-age, survivors, disability, and health insurance benefits........... -1.6 -8.7 18.2 -14.3 33.3 10.5 -3.1 9.2 Government unemployment insurance benefits............................ .0 .8 1.0 .1 1.2 1.1 1.4 1.0 Other................................ 8.3 .0 4.2 2.3 1.6 2.1 21.0 176.5 Other current transfer receipts, from business (net)........................ .1 .0 .1 -.1 .0 .1 .0 .1 Less: Contributions for government social insurance............................... 3.0 4.5 3.8 14.3 3.2 3.8 -.9 2.4 Less: Personal current taxes............... 8.0 8.7 7.8 -14.4 8.0 9.1 -6.4 -374.5 Equals: Disposable personal income......... 37.9 35.8 51.8 40.0 48.1 31.8 39.8 600.3 Less: Personal outlays..................... 30.3 92.1 19.8 44.2 .0 49.8 47.9 84.3 Personal consumption expenditures........ 33.9 94.8 22.5 48.8 5.1 54.8 41.1 77.4 Durable goods.......................... -2.9 -9.8 -11.3 -5.2 2.9 -8.8 -3.1 -1.9 Nondurable goods....................... 14.4 51.8 4.6 19.0 -7.0 32.3 20.2 35.4 Services............................... 22.4 52.8 29.2 35.0 9.1 31.4 24.1 43.8 Personal interest payments\1\............ -3.1 -3.1 -3.0 -5.6 -5.5 -5.6 6.4 6.4 Personal current transfer payments....... -.6 .3 .4 1.0 .5 .4 .5 .5 To government.......................... .3 .4 .4 .4 .4 .5 .5 .5 To the rest of the world (net)......... -1.0 .0 .0 .6 .0 .0 .0 .0 Equals: Personal saving.................... 7.7 -56.3 32.0 -4.2 48.1 -17.9 -8.2 516.0 Addendum: Real disposable personal income, billions of chained (2000) dollars\2\............ 8.2 -24.6 19.4 7.9 27.5 -1.0 13.0 460.2 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised 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] ----------------------------------------------------------------------------------------------------------------------------------- 2006 2007 IV 06 I 07 II 07 III 07 IV 07 I 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 682.3 682.2 169.3 269.0 108.1 157.7 145.9 131.2 Compensation of employees, received...... 416.2 417.8 157.4 165.0 37.0 80.8 102.3 115.7 Wage and salary disbursements.......... 350.3 347.9 137.2 141.4 24.5 63.8 85.7 91.8 Private industries................... 310.7 300.7 126.9 127.0 14.2 52.9 73.9 72.6 Goods-producing industries......... 68.1 50.5 32.9 17.5 3.7 4.9 12.8 7.4 Manufacturing.................... 26.9 25.2 19.0 12.1 -1.3 .6 5.8 5.0 Services-producing industries...... 242.5 250.2 94.1 109.5 10.4 48.0 61.1 65.2 Trade, transportation, and utilities....................... 48.1 48.4 16.4 17.8 13.7 -.4 13.5 9.4 Other services-producing industries...................... 194.5 201.8 77.7 91.6 -3.2 48.4 47.6 55.8 Government........................... 39.7 47.2 10.2 14.5 10.2 11.0 11.8 19.2 Supplements to wages and salaries...... 65.8 69.9 20.2 23.6 12.5 17.0 16.6 23.9 Employer contributions for employee pension and insurance funds......... 43.0 46.1 11.3 12.5 11.7 11.8 11.6 14.0 Employer contributions for government social insurance.................... 22.7 24.0 8.9 11.1 .8 5.2 5.1 9.7 Proprietors' income with inventory valuation and capital consumption adjustments............................. 36.8 35.9 6.2 17.6 11.0 10.3 7.2 .0 Farm................................... -11.4 16.8 5.8 5.2 4.0 5.5 5.2 -6.5 Nonfarm................................ 48.3 19.0 .3 12.5 7.0 4.7 2.1 6.4 Rental income of persons with capital consumption adjustment.................. 11.6 10.9 -2.0 2.3 8.9 6.3 9.4 3.1 Personal income receipts on assets....... 178.7 150.7 8.5 46.3 47.1 46.2 23.6 4.6 Personal interest income............... 81.3 54.5 -16.9 23.3 22.3 22.7 2.1 -12.1 Personal dividend income............... 97.4 96.2 25.4 23.0 24.8 23.4 21.6 16.7 Personal current transfer receipts....... 91.8 119.2 17.1 63.0 6.4 25.2 14.2 29.7 Government social benefits to persons.. 102.2 118.5 14.8 65.1 6.3 25.0 14.0 29.6 Old-age, survivors, disability, and health insurance benefits........... 101.1 76.1 15.9 27.4 20.7 14.5 1.5 20.6 Government unemployment insurance benefits............................ -1.4 2.0 .3 1.5 -.1 .0 .7 2.2 Other................................ 2.6 40.4 -1.4 36.1 -14.2 10.5 11.8 6.9 Other current transfer receipts, from business (net)........................ -10.4 .7 2.3 -2.1 .2 .2 .1 .0 Less: Contributions for government social insurance............................... 52.8 52.3 17.8 25.2 2.4 11.0 10.9 21.8 Less: Personal current taxes............... 145.2 129.4 45.8 53.7 22.9 12.2 22.9 2.1 Equals: Disposable personal income......... 537.1 552.8 123.4 215.3 85.2 145.5 123.0 129.2 Less: Personal outlays..................... 542.9 543.8 80.1 160.3 151.7 131.7 148.0 104.7 Personal consumption expenditures........ 516.7 509.7 68.0 166.8 133.5 111.7 150.9 117.1 Durable goods.......................... 25.0 29.3 2.7 17.5 .7 6.9 .9 -17.0 Nondurable goods....................... 171.8 145.2 -27.0 54.0 63.3 23.6 58.2 45.4 Services............................... 319.8 335.2 92.3 95.3 69.4 81.3 91.9 88.5 Personal interest payments\1\............ 20.3 24.8 9.3 -8.3 16.2 16.3 -3.3 -14.1 Personal current transfer payments....... 6.0 9.3 2.7 1.9 2.0 3.6 .4 1.9 To government.......................... 4.4 7.2 1.6 2.2 1.9 1.8 1.4 1.2 To the rest of the world (net)......... 1.6 2.2 1.1 -.2 .1 1.7 -1.0 .6 Equals: Personal saving.................... -5.8 9.0 43.4 55.0 -66.5 13.9 -25.1 24.5 Addendum: Real disposable personal income, billions of chained (2000) dollars\2\............ 249.0 261.7 126.2 113.2 -16.8 85.0 19.6 30.7 ----------------------------------------------------------------------------------------------------------------------------------- r Revised 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] ----------------------------------------------------------------------------------------------------------------------------------- Oct 07 Nov 07 Dec 07 Jan 08\r\ Feb 08\r\ Mar 08\r\ Apr 08\r\ May 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Based on current-dollar measures ---------------------------------------------------------------------------------------- Personal income............................ .4 .4 .5 .2 .5 .3 .3 1.9 Compensation of employees, received...... .4 .5 .4 .6 .4 .4 .0 .3 Wage and salary disbursements.......... .3 .5 .5 .5 .4 .5 -.1 .3 Supplements to wages and salaries...... .4 .4 .4 .8 .4 .4 .3 .3 Proprietors' income with inventory valuation and capital consumption adjustments............................. .6 .9 -.2 .5 -.7 -.5 .4 .6 Rental income of persons with capital consumption adjustment.................. 5.5 5.2 5.0 -.4 -.6 -.2 12.2 11.1 Personal income receipts on assets....... .2 .2 .2 .0 .1 .0 .0 .0 Personal interest income............... -.3 -.3 -.3 -.4 -.4 -.4 -.3 -.3 Personal dividend income............... .9 .9 .8 .5 .6 .6 .5 .6 Personal current transfer receipts....... .4 -.5 1.3 -.7 2.1 .8 1.1 10.2 Less: Contributions for government social insurance............................... .3 .5 .4 1.4 .3 .4 -.1 .2 Less: Personal current taxes............... .5 .6 .5 -.9 .5 .6 -.4 -24.7 Equals: Disposable personal income......... .4 .3 .5 .4 .5 .3 .4 5.7 Addenda: Personal consumption expenditures........ .3 1.0 .2 .5 .1 .5 .4 .8 Durable goods.......................... -.3 -.9 -1.0 -.5 .3 -.8 -.3 -.2 Nondurable goods....................... .5 1.8 .2 .7 -.2 1.1 .7 1.2 Services............................... .4 .9 .5 .6 .2 .5 .4 .7 ---------------------------------------------------------------------------------------- Based on chained (2000) dollar measures ---------------------------------------------------------------------------------------- Real disposable personal income.......... .1 -.3 .2 .1 .3 .0 .1 5.3 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised Table 6.--Personal Income and Its Disposition, Percent Change from Preceding Period (Years and Quarters) [Quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2006 2007 IV 06 I 07 II 07 III 07 IV 07 I 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Based on current-dollar measures ---------------------------------------------------------------------------------------- Personal income............................ 6.6 6.2 6.3 10.0 3.8 5.6 5.1 4.5 Compensation of employees, received...... 5.9 5.6 8.7 9.0 1.9 4.2 5.3 5.9 Wage and salary disbursements.......... 6.2 5.8 9.4 9.5 1.6 4.1 5.5 5.8 Supplements to wages and salaries...... 4.8 4.9 5.8 6.7 3.4 4.7 4.5 6.4 Proprietors' income with inventory valuation and capital consumption adjustments............................. 3.8 3.6 2.5 7.2 4.4 4.0 2.8 .0 Rental income of persons with capital consumption adjustment.................. 27.2 19.9 -14.0 19.2 85.9 47.1 67.1 17.2 Personal income receipts on assets....... 11.0 8.4 1.9 10.5 10.4 9.9 4.9 .9 Personal interest income............... 8.0 5.0 -5.9 8.7 8.2 8.2 .7 -4.1 Personal dividend income............... 16.3 13.8 15.1 13.1 13.8 12.5 11.2 8.3 Personal current transfer receipts....... 6.0 7.4 4.3 16.2 1.5 6.0 3.3 6.9 Less: Contributions for government social insurance............................... 6.0 5.6 7.9 11.1 1.0 4.6 4.5 9.0 Less: Personal current taxes............... 12.0 9.6 14.2 16.2 6.5 3.3 6.3 .5 Equals: Disposable personal income......... 5.9 5.7 5.2 9.1 3.4 5.9 4.9 5.1 Addenda: Personal consumption expenditures........ 5.9 5.5 3.0 7.3 5.7 4.7 6.3 4.8 Durable goods.......................... 2.4 2.8 1.0 6.8 .3 2.6 .3 -6.1 Nondurable goods....................... 6.8 5.4 -3.9 8.2 9.5 3.4 8.4 6.4 Services............................... 6.2 6.1 6.9 7.0 5.0 5.7 6.4 6.1 ---------------------------------------------------------------------------------------- Based on chained (2000) dollar measures ---------------------------------------------------------------------------------------- Real disposable personal income.......... 3.1 3.1 6.2 5.4 -.8 4.0 .9 1.4 ----------------------------------------------------------------------------------------------------------------------------------- r Revised Table 7.--Real Personal Consumption Expenditures by Major Type of Product (Months) ----------------------------------------------------------------------------------------------------------------------------------- Oct 07 Nov 07 Dec 07 Jan 08\r\ Feb 08\r\ Mar 08\r\ Apr 08\r\ May 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Billions of chained (2000) dollars, seasonally adjusted at annual rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 8,332.2 8,359.6 8,355.3 8,371.7 8,363.8 8,383.2 8,398.0 8,428.1 Durable goods............................ 1,257.2 1,248.6 1,238.7 1,231.3 1,233.4 1,222.7 1,222.7 1,224.1 Nondurable goods......................... 2,406.0 2,407.6 2,398.8 2,399.0 2,395.3 2,415.1 2,424.1 2,433.0 Services................................. 4,698.5 4,728.7 4,739.9 4,760.2 4,755.0 4,761.4 4,766.9 4,785.8 ---------------------------------------------------------------------------------------- Change from preceding period in billions of chained (2000) dollars, seasonally adjusted at annual rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 5.8 27.4 -4.3 16.4 -7.9 19.4 14.8 30.1 Durable goods............................ -4.0 -8.6 -9.9 -7.4 2.1 -10.7 .0 1.4 Nondurable goods......................... 4.0 1.6 -8.8 .2 -3.7 19.8 9.0 8.9 Services................................. 4.7 30.2 11.2 20.3 -5.2 6.4 5.5 18.9 ---------------------------------------------------------------------------------------- Percent change from preceding period in chained (2000) dollars, seasonally adjusted at monthly rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... .1 .3 -.1 .2 -.1 .2 .2 .4 Durable goods............................ -.3 -.7 -.8 -.6 .2 -.9 .0 .1 Nondurable goods......................... .2 .1 -.4 .0 -.2 .8 .4 .4 Services................................. .1 .6 .2 .4 -.1 .1 .1 .4 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised Table 8.--Real Personal Consumption Expenditures by Major Type of Product (Years and Quarters) [Quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2006 2007 IV 06 I 07 II 07 III 07 IV 07 I 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Billions of chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 8,044.1 8,277.8 8,141.2 8,215.7 8,244.3 8,302.2 8,349.1 8,372.9 Durable goods............................ 1,180.5 1,235.4 1,197.6 1,223.2 1,228.4 1,241.9 1,248.1 1,229.1 Nondurable goods......................... 2,337.7 2,392.8 2,368.8 2,386.6 2,383.8 2,396.8 2,404.2 2,403.2 Services................................. 4,545.5 4,674.8 4,595.5 4,630.7 4,656.7 4,689.5 4,722.4 4,758.9 ---------------------------------------------------------------------------------------- Change from preceding period in billions of chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 240.5 233.7 77.4 74.5 28.6 57.9 46.9 23.8 Durable goods............................ 43.1 54.9 11.3 25.6 5.2 13.5 6.2 -19.0 Nondurable goods......................... 82.3 55.1 24.9 17.8 -2.8 13.0 7.4 -1.0 Services................................. 118.2 129.3 41.5 35.2 26.0 32.8 32.9 36.5 ---------------------------------------------------------------------------------------- Percent change from preceding period in chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 3.1 2.9 3.9 3.7 1.4 2.8 2.3 1.1 Durable goods............................ 3.8 4.7 3.9 8.8 1.7 4.5 2.0 -6.0 Nondurable goods......................... 3.6 2.4 4.3 3.0 -.5 2.2 1.2 -.2 Services................................. 2.7 2.8 3.7 3.1 2.3 2.8 2.8 3.1 ----------------------------------------------------------------------------------------------------------------------------------- r Revised Table 9.--Price Indexes for Personal Consumption Expenditures: Level and Percent Change From Preceding Period (Months) ----------------------------------------------------------------------------------------------------------------------------------- Oct 07 Nov 07 Dec 07 Jan 08\r\ Feb 08\r\ Mar 08\r\ Apr 08\r\ May 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Chain-type price indexes (2000=100), seasonally adjusted ---------------------------------------------------------------------------------------- Personal consumption expenditures (PCE).... 118.412 119.158 119.488 119.837 120.011 120.388 120.664 121.151 Durable goods............................ 86.927 86.736 86.514 86.611 86.697 86.735 86.484 86.232 Nondurable goods......................... 119.219 121.286 121.923 122.709 122.606 122.938 123.315 124.323 Services................................. 125.680 125.995 126.312 126.507 126.841 127.327 127.686 128.097 Addenda: PCE excluding food and energy............ 115.188 115.403 115.618 115.870 116.034 116.255 116.415 116.546 Market-based PCE\1\...................... 116.665 117.498 117.853 118.227 118.366 118.706 118.999 119.562 Market-based PCE excluding food and energy\1\........................... 112.338 112.554 112.778 113.039 113.158 113.301 113.459 113.611 ---------------------------------------------------------------------------------------- Percent change from preceding period in price indexes, seasonally adjusted at monthly rates ---------------------------------------------------------------------------------------- PCE........................................ .3 .6 .3 .3 .1 .3 .2 .4 Durable goods............................ .1 -.2 -.3 .1 .1 .0 -.3 -.3 Nondurable goods......................... .3 1.7 .5 .6 -.1 .3 .3 .8 Services................................. .3 .3 .3 .2 .3 .4 .3 .3 Addenda: PCE excluding food and energy............ .2 .2 .2 .2 .1 .2 .1 .1 Market-based PCE\1\...................... .3 .7 .3 .3 .1 .3 .2 .5 Market-based PCE excluding food and energy\1\........................... .2 .2 .2 .2 .1 .1 .1 .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 ----------------------------------------------------------------------------------------------------------------------------------- Oct 07 Nov 07 Dec 07 Jan 08\r\ Feb 08\r\ Mar 08\r\ Apr 08\r\ May 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Disposable personal income................. 2.8 2.2 2.1 1.6 1.4 1.1 1.9 7.3 Personal consumption expenditures.......... 2.7 2.8 2.2 2.0 1.6 2.1 1.9 2.2 Durable goods............................ 5.8 4.6 2.3 .5 1.0 -.1 .2 -1.5 Nondurable goods......................... 2.1 1.9 .4 .5 .4 1.1 1.9 2.0 Services................................. 2.4 2.9 3.1 3.0 2.3 2.9 2.3 3.1 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised Table 11.--Price Indexes for Personal Consumption Expenditures: Percent Change From Month One Year Ago ----------------------------------------------------------------------------------------------------------------------------------- Oct 07 Nov 07 Dec 07 Jan 08\r\ Feb 08\r\ Mar 08\r\ Apr 08\r\ May 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal consumption expenditures (PCE).... 3.0 3.6 3.5 3.5 3.4 3.3 3.2 3.1 Durable goods............................ -1.8 -1.7 -1.6 -1.3 -1.3 -1.2 -1.2 -1.4 Nondurable goods......................... 4.4 6.6 6.3 6.8 6.3 5.4 5.0 4.5 Services................................. 3.2 3.2 3.2 2.9 2.9 3.1 3.2 3.3 Addenda: PCE excluding food and energy............ 2.0 2.1 2.2 2.0 2.0 2.1 2.1 2.1 Market-based PCE\1\...................... 3.0 3.7 3.6 3.7 3.5 3.2 3.2 3.1 Market-based PCE excluding food and energy\1\........................... 1.7 1.9 2.0 1.8 1.7 1.8 1.9 1.9 ----------------------------------------------------------------------------------------------------------------------------------- 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.