EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, AUGUST 29, 2008 James E. Rankin: (202) 606-5301 (Personal Income) BEA 08-39 Brendan Leary: (202) 606-5302 (Personal Outlays) PERSONAL INCOME AND OUTLAYS: JULY 2008 Personal income decreased $89.9 billion, or 0.7 percent, in July, in contrast to an increase of $7.4 billion, or 0.1 percent, in June and an increase of $218.0 billion, or 1.8 percent, in May. Disposable personal income (DPI) decreased $114.7 billion, or 1.1 percent, in July, compared with a decrease of $208.0 billion, or 1.9 percent, in June and an increase of $595.9 billion, or 5.7 percent in May. Personal consumption expenditures (PCE) increased $24.1 billion, or 0.2 percent, in July, compared with an increase of $65.5 billion, or 0.6 percent, in June. The pattern of changes in income reflects the pattern of payments associated with the Economic Stimulus Act of 2008 (see page 2). Real DPI decreased 1.7 percent in July, compared with a decrease of 2.6 percent in June. Real PCE decreased 0.4 percent, compared with a decrease of 0.1 percent. 2008 Mar. Apr. May June July (Percent change from preceding month) Personal income, current dollars 0.4 0.2 1.8 0.1 -0.7 Disposable personal income: Current dollars 0.4 0.3 5.7 -1.9 -1.1 Chained (2000) dollars 0.1 0.1 5.2 -2.6 -1.7 Personal consumption expenditures: Current dollars 0.6 0.4 0.8 0.6 0.2 Chained (2000) dollars 0.3 0.1 0.3 -0.1 -0.4 In April, May, June, and July, changes in disposable personal income (DPI) -- personal income less personal current taxes -- were affected by the Economic Stimulus Act of 2008. The federal government issued rebate payments of $1.9 billion in April ($23.3 billion at an annual rate), of $48.1 billion in May ($577.1 billion at an annual rate), of $27.9 billion in June ($334.4 billion at an annual rate), and of $13.7 billion in July ($164.1 billion at an annual rate). These rebates increased government social benefit payments and reduced personal current taxes. The rebates boosted the change in DPI $23.3 billion in April and $553.8 billion in May, and reduced the change in DPI by $242.7 billion in June and by $170.3 billion in July. Excluding these rebate payments, which are discussed more fully below, DPI increased $55.6 billion, or 0.5 percent, in July, increased $34.7 billion, or 0.3 percent, in June, and increased $42.1 billion, or 0.4 percent, in May. Wages and salaries Private wage and salary disbursements increased $13.2 billion in July, compared with an increase of $7.9 billion in June. Goods-producing industries' payrolls increased $4.6 billion, compared with an increase of $1.8 billion; manufacturing payrolls increased $0.7 billion, compared with an increase of $1.7 billion. Services-producing industries' payrolls increased $8.6 billion, compared with an increase of $6.0 billion. Government wage and salary disbursements increased $4.3 billion, compared with an increase of $6.1 billion. Other personal income Supplements to wages and salaries increased $3.8 billion in July, compared with an increase of $3.3 billion in June. Proprietors' income increased $4.4 billion in July, compared with an increase of $7.6 billion in June. Farm proprietors' income decreased $2.3 billion, compared with a decrease of $2.0 billion. Nonfarm proprietors' income increased $6.8 billion, compared with an increase of $9.6 billion. Rental income of persons increased $4.4 billion in July, compared with an increase of $7.4 billion in June. Personal income receipts on assets (personal interest income plus personal dividend income) increased $18.4 billion, in contrast to a decrease of $4.2 billion. Personal current transfer receipts decreased $136.6 billion in July, compared with a decrease of $19.6 billion in June. The July and June changes reflected provisions of the Economic Stimulus Act of 2008, which boosted the level of personal current transfer receipts by $4.2 billion (at an annual rate) in July, by $149.4 billion in June, and by $179.6 billion in May. These personal current transfer receipts reflected payments to individuals who either paid no income tax or whose payment exceeded the amount of income tax paid (see box on page 6). Contributions for government social insurance -- a subtraction in calculating personal income -- increased $1.7 billion in July, compared with an increase of $1.1 billion in June. Personal current taxes and disposable personal income Personal current taxes increased $24.7 billion in July, compared with an increase of $215.5 billion in June. Provisions of the Economic Stimulus Act of 2008 reduced the level of personal current taxes by $159.9 billion (at an annual rate) in July, by $185.0 billion in June, and by $397.5 billion in May. The reductions in current personal taxes reflected rebate payments to eligible individual taxpayers (see box below). Disposable personal income (DPI) -- personal income less personal current taxes -- decreased 114.7 billion, or 1.1 percent, in July, compared with a decrease of $208.0 billion, or 1.9 percent, in June. Personal outlays and personal saving Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $24.4 billion in July, compared with an increase of $63.2 billion in June. PCE increased $24.1 billion, compared with an increase of $65.5 billion. Personal saving -- DPI less personal outlays -- was $133.8 billion in July, compared with $272.9 billion in June. Personal saving as a percentage of disposable personal income was 1.2 percent in July, compared with 2.5 percent in June. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods. For more information, see the FAQs on "Personal Saving" on BEA's Web site. For a comparison of personal saving in BEA's national income and product accounts with personal saving in the Federal Reserve Board's flow of funds accounts, go to http://www.bea.gov/bea/dn/nipaweb/Nipa-Frb.asp. Real DPI and real PCE Real DPI -- DPI adjusted to remove price changes -- decreased 1.7 percent in July, compared with a decrease of 2.6 percent in June. Real PCE -- PCE adjusted to remove price changes -- decreased 0.4 percent in July, compared with a decrease of 0.1 percent in June. Purchases of durable goods decreased 1.6 percent, compared with a decrease of 1.4 percent. Purchases of motor vehicles and parts accounted for most of the decrease in July and about one-half the decrease in June. Purchases of nondurable goods decreased 0.9 percent in July, compared with a decrease of 0.3 percent in June. Purchases of services increased less than 0.1 percent, compared with an increase of 0.2 percent. PCE price index -- The price index for PCE increased 0.6 percent in July, compared with an increase of 0.7 percent in June. The PCE price index, excluding food and energy, increased 0.3 percent in July, the same increase as in June. Revisions Estimates for personal income and DPI have been revised for January through June; estimates for PCE have been revised for April through June. Changes in personal income, current-dollar and chained (2000) dollar DPI, and current-dollar and chained (2000) dollar PCE for May and June -- revised and as published in last month's release -- are shown below. For January through June, the revisions to wages and salaries reflect the incorporation of the newly available BLS tabulations of first-quarter private wages and salaries from the quarterly census of employment and wages. Revisions to personal current taxes and to contributions for government social insurance reflect the revisions to wages and salaries. Change from preceding month May June Previous Revised Previous Revised Previous Revised Previous Revised (Billions of dollars) (Percent) (Billions of dollars) (Percent) Personal Income: Current dollars...................... 219.3 218.0 1.8 1.8 6.8 7.4 0.1 0.1 Disposable personal income: Current dollars...................... 595.4 595.9 5.7 5.7 -210.3 -208.0 -1.9 -1.9 Chained (2000) dollars............... 451.4 452.7 5.2 5.2 -240.7 -237.7 -2.6 -2.6 Personal consumption expenditures: Current dollars...................... 76.5 76.8 0.8 0.8 57.1 65.5 0.6 0.6 Chained (2000) dollars............... 25.6 26.5 0.3 0.3 -16.2 -8.3 -0.2 -0.1 This news release presents revised estimates of wages and salaries, personal taxes, and contributions for government social insurance for January through March 2008 (first quarter). These estimates reflect newly available first-quarter wage and salary tabulations from the quarterly census of employment and wages from the Bureau of Labor Statistics. Economic Stimulus Act of 2008 The Economic Stimulus Act of 2008 provides rebate payments to eligible individual taxpayers as well as tax reductions for businesses. For individuals, the amount of the rebate is determined by information reported on tax filings for 2007 and is based on filing status, level of adjusted gross income, and the number of qualifying children. According to the Joint Committee on Taxation and the Congressional Budget Office, rebates to individuals are expected to total $106.7 billion for fiscal year 2008. The majority of rebates were sent during the initial round of payments, which began April 28, 2008, and continued on a weekly basis through mid-July 2008. In the NIPAs, rebates for residents of the 50 states and the District of Columbia are recorded as either an offset to personal current taxes or as a social benefit payment to persons. Rebates for individuals with tax liabilities that exceed the rebate amount are treated as an offset to personal current taxes in the NIPAs. Rebates for individuals who pay no income taxes (or for whom the rebate would exceed the amount of the income taxes they do pay) are treated as a government social benefit payment to persons in the NIPAs. BEA's national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. * * * Next release -- September 29, 2008, at 8:30 A.M. EDT for Personal Income and Outlays for August. Table 1.--Personal Income and Its Disposition (Months) [Billions of dollars; months seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- Dec 07 Jan 08\r\ Feb 08\r\ Mar 08\r\ Apr 08\r\ May 08\r\ Jun 08\r\ Jul 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 11,924.0 11,930.0 11,952.4 11,999.0 12,026.4 12,244.4 12,251.8 12,161.9 Compensation of employees, received...... 7,973.9 7,984.6 8,005.2 8,039.4 8,049.1 8,073.4 8,090.6 8,111.8 Wage and salary disbursements.......... 6,493.1 6,495.4 6,513.0 6,545.7 6,549.7 6,570.2 6,584.1 6,601.6 Private industries................... 5,398.0 5,389.7 5,402.9 5,432.2 5,431.7 5,446.5 5,454.4 5,467.6 Goods-producing industries......... 1,220.2 1,216.0 1,215.9 1,221.2 1,214.2 1,216.4 1,218.2 1,222.8 Manufacturing.................... 751.0 747.9 747.2 750.0 747.2 748.7 750.4 751.1 Services-producing industries...... 4,177.7 4,173.6 4,187.0 4,211.0 4,217.4 4,230.2 4,236.2 4,244.8 Trade, transportation, and utilities....................... 1,054.9 1,049.8 1,047.4 1,053.9 1,049.1 1,048.2 1,049.6 1,049.3 Other services-producing industries...................... 3,122.8 3,123.8 3,139.6 3,157.1 3,168.3 3,182.0 3,186.6 3,195.5 Government........................... 1,095.1 1,105.7 1,110.1 1,113.4 1,118.1 1,123.6 1,129.7 1,134.0 Supplements to wages and salaries...... 1,480.8 1,489.3 1,492.3 1,493.7 1,499.4 1,503.2 1,506.5 1,510.3 Employer contributions for employee pension and insurance funds......... 1,009.9 1,014.0 1,016.2 1,015.7 1,021.5 1,024.4 1,027.2 1,030.2 Employer contributions for government social insurance.................... 470.9 475.2 476.1 478.0 477.9 478.8 479.3 480.1 Proprietors' income with inventory valuation and capital consumption adjustments............................. 1,074.3 1,074.5 1,069.1 1,071.4 1,071.2 1,076.6 1,084.2 1,088.6 Farm................................... 47.3 41.7 42.1 41.0 39.8 39.2 37.2 34.9 Nonfarm................................ 1,027.0 1,032.8 1,027.0 1,030.4 1,031.4 1,037.3 1,046.9 1,053.7 Rental income of persons with capital consumption adjustment.................. 37.2 38.1 38.8 40.5 46.6 53.4 60.8 65.2 Personal income receipts on assets....... 2,059.4 2,056.4 2,054.2 2,051.7 2,047.2 2,043.0 2,038.8 2,057.2 Personal interest income............... 1,239.4 1,232.0 1,224.6 1,217.2 1,208.3 1,199.4 1,190.5 1,204.0 Personal dividend income............... 820.0 824.4 829.6 834.5 838.8 843.6 848.3 853.2 Personal current transfer receipts....... 1,757.3 1,766.3 1,776.6 1,791.3 1,807.5 1,995.3 1,975.7 1,839.1 Government social benefits to persons.. 1,724.2 1,734.2 1,744.3 1,758.9 1,775.1 1,962.9 1,943.3 1,806.6 Old-age, survivors, disability, and health insurance benefits........... 1,019.3 1,024.1 1,030.6 1,042.5 1,041.0 1,051.8 1,057.0 1,067.5 Government unemployment insurance benefits............................ 36.9 37.0 38.2 39.3 40.6 41.5 42.0 43.3 Other................................ 667.9 673.1 675.5 677.1 693.5 869.5 844.3 695.8 Other current transfer receipts, from business (net)........................ 33.2 32.1 32.3 32.4 32.4 32.4 32.4 32.5 Less: Contributions for government social insurance............................... 978.1 989.8 991.5 995.3 995.2 997.2 998.3 1,000.0 Less: Personal current taxes............... 1,525.7 1,530.6 1,534.1 1,540.2 1,532.0 1,154.2 1,369.7 1,394.4 Equals: Disposable personal income......... 10,398.3 10,399.4 10,418.3 10,458.8 10,494.3 11,090.2 10,882.2 10,767.5 Less: Personal outlays..................... 10,355.4 10,393.1 10,385.2 10,436.3 10,471.6 10,546.1 10,609.3 10,633.7 Personal consumption expenditures........ 9,941.4 9,984.6 9,982.7 10,039.7 10,077.0 10,153.8 10,219.3 10,243.4 Durable goods.......................... 1,074.0 1,072.5 1,075.4 1,065.3 1,062.8 1,065.7 1,051.5 1,036.0 Nondurable goods....................... 2,933.8 2,946.9 2,935.1 2,970.2 2,990.8 3,025.6 3,070.3 3,080.2 Services............................... 5,933.7 5,965.3 5,972.2 6,004.2 6,023.4 6,062.5 6,097.4 6,127.2 Personal interest payments\1\............ 274.0 267.9 261.7 255.6 253.0 250.3 247.7 247.6 Personal current transfer payments....... 139.9 140.6 140.8 141.0 141.7 142.0 142.3 142.7 To government.......................... 82.6 82.7 82.9 83.1 83.4 83.7 84.0 84.4 To the rest of the world (net)......... 57.3 57.9 57.9 57.9 58.3 58.3 58.3 58.3 Equals: Personal saving.................... 42.9 6.3 33.0 22.5 22.7 544.1 272.9 133.8 Personal saving as a percentage of disposable personal income.............. .4 .1 .3 .2 .2 4.9 2.5 1.2 Addenda: Disposable personal income: Total, billions of chained (2000) dollars\2\............................ 8,689.0 8,662.8 8,666.9 8,673.8 8,682.5 9,135.2 8,897.5 8,748.3 Per capita: Current dollars...................... 34,266 34,246 34,286 34,396 34,488 36,419 35,705 35,298 Chained (2000) dollars............... 28,633 28,527 28,522 28,526 28,534 29,999 29,194 28,679 Population (midperiod, thousands)\3\..... 303,457 303,670 303,866 304,068 304,287 304,521 304,776 305,043 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. 1. Consists of nonmortgage interest paid by households. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. 3. Population is the total population of the United States, including the Armed Forces overseas and the institutionalized population. The monthly estimate is the average of estimates for the first of the month and the first of the following month; the annual and quarterly estimates are averages of the monthly estimates. Table 2.--Personal Income and Its Disposition (Years and Quarters) [Billions of dollars; quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2006 2007 I 07 II 07 III 07 IV 07 I 08\r\ II 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 10,993.9 11,663.2 11,473.0 11,577.5 11,730.4 11,872.1 11,960.5 12,174.2 Compensation of employees, received...... 7,432.6 7,818.6 7,734.0 7,760.1 7,839.3 7,941.0 8,009.7 8,071.0 Wage and salary disbursements.......... 6,027.2 6,362.0 6,294.0 6,310.7 6,377.7 6,465.5 6,518.0 6,568.0 Private industries................... 5,004.2 5,286.7 5,234.0 5,242.5 5,297.0 5,373.4 5,408.3 5,444.2 Goods-producing industries......... 1,167.2 1,205.4 1,198.4 1,200.7 1,204.3 1,218.2 1,217.7 1,216.3 Manufacturing.................... 731.2 746.0 746.4 744.0 743.4 750.2 748.4 748.8 Services-producing industries...... 3,837.1 4,081.3 4,035.6 4,041.9 4,092.6 4,155.3 4,190.5 4,227.9 Trade, transportation, and utilities....................... 986.7 1,035.2 1,020.8 1,036.5 1,035.3 1,048.3 1,050.4 1,049.0 Other services-producing industries...................... 2,850.4 3,046.1 3,014.8 3,005.4 3,057.4 3,106.9 3,140.2 3,179.0 Government........................... 1,023.0 1,075.2 1,059.9 1,068.1 1,080.8 1,092.1 1,109.7 1,123.8 Supplements to wages and salaries...... 1,405.3 1,456.6 1,440.0 1,449.4 1,461.6 1,475.5 1,491.7 1,503.0 Employer contributions for employee pension and insurance funds......... 956.8 991.9 977.6 987.7 996.5 1,005.9 1,015.3 1,024.4 Employer contributions for government social insurance.................... 448.5 464.7 462.3 461.7 465.1 469.6 476.4 478.7 Proprietors' income with inventory valuation and capital consumption adjustments............................. 1,014.7 1,056.2 1,037.2 1,050.2 1,063.8 1,073.8 1,071.7 1,077.3 Farm................................... 16.2 44.0 39.3 42.3 47.4 47.1 41.6 38.7 Nonfarm................................ 998.6 1,012.2 997.9 1,007.9 1,016.4 1,026.7 1,030.1 1,038.6 Rental income of persons with capital consumption adjustment.................. 44.3 40.0 35.1 44.6 41.8 38.6 39.1 53.6 Personal income receipts on assets....... 1,824.8 2,000.1 1,930.9 1,982.5 2,030.9 2,056.2 2,054.1 2,043.0 Personal interest income............... 1,125.4 1,214.3 1,172.2 1,206.1 1,236.2 1,242.7 1,224.6 1,199.4 Personal dividend income............... 699.4 785.8 758.7 776.5 794.7 813.5 829.5 843.6 Personal current transfer receipts....... 1,603.0 1,713.3 1,695.7 1,699.2 1,720.6 1,737.8 1,778.1 1,926.2 Government social benefits to persons.. 1,578.1 1,681.4 1,665.3 1,667.5 1,688.0 1,704.7 1,745.8 1,893.8 Old-age, survivors, disability, and health insurance benefits........... 938.9 999.4 981.9 997.5 1,008.8 1,009.6 1,032.4 1,050.0 Government unemployment insurance benefits............................ 29.9 32.3 31.3 31.2 32.5 34.3 38.2 41.4 Other................................ 609.3 649.6 652.1 638.8 646.7 660.9 675.3 802.4 Other current transfer receipts, from business (net)........................ 24.9 31.9 30.4 31.7 32.5 33.1 32.2 32.4 Less: Contributions for government social insurance............................... 925.5 965.1 959.8 959.1 966.0 975.3 992.2 996.9 Less: Personal current taxes............... 1,353.2 1,492.8 1,459.5 1,489.4 1,501.6 1,520.5 1,535.0 1,352.0 Equals: Disposable personal income......... 9,640.7 10,170.5 10,013.5 10,088.0 10,228.8 10,351.5 10,425.5 10,822.2 Less: Personal outlays..................... 9,570.0 10,113.1 9,904.2 10,056.9 10,182.0 10,309.2 10,404.9 10,542.3 Personal consumption expenditures........ 9,207.2 9,710.2 9,524.9 9,657.5 9,765.6 9,892.7 10,002.3 10,150.0 Durable goods.......................... 1,052.1 1,082.8 1,076.6 1,085.3 1,086.2 1,083.0 1,071.0 1,060.0 Nondurable goods....................... 2,685.2 2,833.0 2,761.5 2,817.7 2,846.6 2,906.2 2,950.7 3,028.9 Services............................... 5,469.9 5,794.4 5,686.8 5,754.4 5,832.8 5,903.5 5,980.6 6,061.1 Personal interest payments\1\............ 235.4 265.4 244.0 262.6 278.2 276.7 261.7 250.3 Personal current transfer payments....... 127.4 137.5 135.3 136.9 138.1 139.8 140.8 142.0 To government.......................... 76.2 81.2 79.6 80.8 81.8 82.5 82.9 83.7 To the rest of the world (net)......... 51.1 56.3 55.7 56.0 56.3 57.3 57.9 58.3 Equals: Personal saving.................... 70.7 57.4 109.3 31.1 46.8 42.4 20.6 279.9 Personal saving as a percentage of disposable personal income.............. .7 .6 1.1 .3 .5 .4 .2 2.6 Addenda: Disposable personal income: Total, billions of chained (2000) dollars\2\............................ 8,407.0 8,644.0 8,617.7 8,604.5 8,671.1 8,683.1 8,667.9 8,905.4 Per capita: Current dollars...................... 32,222 33,667 33,267 33,441 33,820 34,138 34,309 35,538 Chained (2000) dollars............... 28,098 28,614 28,630 28,523 28,669 28,636 28,525 29,243 Population (midperiod, thousands)\3\..... 299,199 302,087 301,004 301,667 302,452 303,225 303,868 304,528 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. 1. Consists of nonmortgage interest paid by households. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. 3. Population is the total population of the United States, including the Armed Forces overseas and the institutionalized population. The monthly estimate is the average of estimates for the first of the month and the first of the following month; the annual and quarterly estimates are averages of the monthly estimates. Table 3.--Personal Income and Its Disposition, Change from Preceding Period (Months) [Billions of dollars; months seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- Dec 07 Jan 08\r\ Feb 08\r\ Mar 08\r\ Apr 08\r\ May 08\r\ Jun 08\r\ Jul 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 52.7 6.0 22.4 46.6 27.4 218.0 7.4 -89.9 Compensation of employees, received...... 28.7 10.7 20.6 34.2 9.7 24.3 17.2 21.2 Wage and salary disbursements.......... 23.7 2.3 17.6 32.7 4.0 20.5 13.9 17.5 Private industries................... 20.2 -8.3 13.2 29.3 -.5 14.8 7.9 13.2 Goods-producing industries......... -2.4 -4.2 -.1 5.3 -7.0 2.2 1.8 4.6 Manufacturing.................... -3.0 -3.1 -.7 2.8 -2.8 1.5 1.7 .7 Services-producing industries...... 22.5 -4.1 13.4 24.0 6.4 12.8 6.0 8.6 Trade, transportation, and utilities....................... 7.7 -5.1 -2.4 6.5 -4.8 -.9 1.4 -.3 Other services-producing industries...................... 14.8 1.0 15.8 17.5 11.2 13.7 4.6 8.9 Government........................... 3.5 10.6 4.4 3.3 4.7 5.5 6.1 4.3 Supplements to wages and salaries...... 5.1 8.5 3.0 1.4 5.7 3.8 3.3 3.8 Employer contributions for employee pension and insurance funds......... 4.1 4.1 2.2 -.5 5.8 2.9 2.8 3.0 Employer contributions for government social insurance.................... 1.0 4.3 .9 1.9 -.1 .9 .5 .8 Proprietors' income with inventory valuation and capital consumption adjustments............................. -4.7 .2 -5.4 2.3 -.2 5.4 7.6 4.4 Farm................................... .2 -5.6 .4 -1.1 -1.2 -.6 -2.0 -2.3 Nonfarm................................ -5.0 5.8 -5.8 3.4 1.0 5.9 9.6 6.8 Rental income of persons with capital consumption adjustment.................. -1.6 .9 .7 1.7 6.1 6.8 7.4 4.4 Personal income receipts on assets....... 3.1 -3.0 -2.2 -2.5 -4.5 -4.2 -4.2 18.4 Personal interest income............... -3.5 -7.4 -7.4 -7.4 -8.9 -8.9 -8.9 13.5 Personal dividend income............... 6.6 4.4 5.2 4.9 4.3 4.8 4.7 4.9 Personal current transfer receipts....... 29.4 9.0 10.3 14.7 16.2 187.8 -19.6 -136.6 Government social benefits to persons.. 29.3 10.0 10.1 14.6 16.2 187.8 -19.6 -136.7 Old-age, survivors, disability, and health insurance benefits........... 16.5 4.8 6.5 11.9 -1.5 10.8 5.2 10.5 Government unemployment insurance benefits............................ 4.1 .1 1.2 1.1 1.3 .9 .5 1.3 Other................................ 8.7 5.2 2.4 1.6 16.4 176.0 -25.2 -148.5 Other current transfer receipts, from business (net)........................ .1 -1.1 .2 .1 .0 .0 .0 .1 Less: Contributions for government social insurance............................... 2.2 11.7 1.7 3.8 -.1 2.0 1.1 1.7 Less: Personal current taxes............... 3.8 4.9 3.5 6.1 -8.2 -377.8 215.5 24.7 Equals: Disposable personal income......... 48.9 1.1 18.9 40.5 35.5 595.9 -208.0 -114.7 Less: Personal outlays..................... 19.2 37.7 -7.9 51.1 35.3 74.5 63.2 24.4 Personal consumption expenditures........ 21.8 43.2 -1.9 57.0 37.3 76.8 65.5 24.1 Durable goods.......................... -10.8 -1.5 2.9 -10.1 -2.5 2.9 -14.2 -15.5 Nondurable goods....................... 9.7 13.1 -11.8 35.1 20.6 34.8 44.7 9.9 Services............................... 23.0 31.6 6.9 32.0 19.2 39.1 34.9 29.8 Personal interest payments\1\............ -2.8 -6.1 -6.2 -6.1 -2.6 -2.7 -2.6 -.1 Personal current transfer payments....... .1 .7 .2 .2 .7 .3 .3 .4 To government.......................... .1 .1 .2 .2 .3 .3 .3 .4 To the rest of the world (net)......... .0 .6 .0 .0 .4 .0 .0 .0 Equals: Personal saving.................... 29.7 -36.6 26.7 -10.5 .2 521.4 -271.2 -139.1 Addendum: Real disposable personal income, billions of chained (2000) dollars\2\............ 17.0 -26.2 4.1 6.9 8.7 452.7 -237.7 -149.2 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. 1. Consists of nonmortgage interest paid by households. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. Table 4.--Personal Income and Its Disposition, Change from Preceding Period (Years and Quarters) [Billions of dollars; quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2006 2007 I 07 II 07 III 07 IV 07 I 08\r\ II 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 724.1 669.3 248.3 104.5 152.9 141.7 88.4 213.7 Compensation of employees, received...... 406.8 386.0 147.9 26.1 79.2 101.7 68.7 61.3 Wage and salary disbursements.......... 355.5 334.8 131.8 16.7 67.0 87.8 52.5 50.0 Private industries................... 313.3 282.5 113.7 8.5 54.5 76.4 34.9 35.9 Goods-producing industries......... 68.0 38.2 15.5 2.3 3.6 13.9 -.5 -1.4 Manufacturing.................... 27.2 14.8 8.2 -2.4 -.6 6.8 -1.8 .4 Services-producing industries...... 245.4 244.2 98.1 6.3 50.7 62.7 35.2 37.4 Trade, transportation, and utilities....................... 48.5 48.5 16.3 15.7 -1.2 13.0 2.1 -1.4 Other services-producing industries...................... 196.9 195.7 81.9 -9.4 52.0 49.5 33.3 38.8 Government........................... 42.3 52.2 18.0 8.2 12.7 11.3 17.6 14.1 Supplements to wages and salaries...... 51.2 51.3 16.1 9.4 12.2 13.9 16.2 11.3 Employer contributions for employee pension and insurance funds......... 30.8 35.1 9.5 10.1 8.8 9.4 9.4 9.1 Employer contributions for government social insurance.................... 20.4 16.2 6.5 -.6 3.4 4.5 6.8 2.3 Proprietors' income with inventory valuation and capital consumption adjustments............................. 54.9 41.5 14.8 13.0 13.6 10.0 -2.1 5.6 Farm................................... -17.9 27.8 15.6 3.0 5.1 -.3 -5.5 -2.9 Nonfarm................................ 72.9 13.6 -.8 10.0 8.5 10.3 3.4 8.5 Rental income of persons with capital consumption adjustment.................. 3.4 -4.3 -3.1 9.5 -2.8 -3.2 .5 14.5 Personal income receipts on assets....... 227.9 175.3 42.3 51.6 48.4 25.3 -2.1 -11.1 Personal interest income............... 103.4 88.9 26.6 33.9 30.1 6.5 -18.1 -25.2 Personal dividend income............... 124.5 86.4 15.7 17.8 18.2 18.8 16.0 14.1 Personal current transfer receipts....... 82.3 110.3 65.9 3.5 21.4 17.2 40.3 148.1 Government social benefits to persons.. 96.2 103.3 62.2 2.2 20.5 16.7 41.1 148.0 Old-age, survivors, disability, and health insurance benefits........... 94.4 60.5 22.7 15.6 11.3 .8 22.8 17.6 Government unemployment insurance benefits............................ -1.4 2.4 .9 -.1 1.3 1.8 3.9 3.2 Other................................ 3.2 40.3 38.5 -13.3 7.9 14.2 14.4 127.1 Other current transfer receipts, from business (net)........................ -13.9 7.0 3.7 1.3 .8 .6 -.9 .2 Less: Contributions for government social insurance............................... 51.2 39.6 19.4 -.7 6.9 9.3 16.9 4.7 Less: Personal current taxes............... 145.4 139.6 59.9 29.9 12.2 18.9 14.5 -183.0 Equals: Disposable personal income......... 578.7 529.8 188.4 74.5 140.8 122.7 74.0 396.7 Less: Personal outlays..................... 540.5 543.1 165.2 152.7 125.1 127.2 95.7 137.4 Personal consumption expenditures........ 513.1 503.0 167.9 132.6 108.1 127.1 109.6 147.7 Durable goods.......................... 31.3 30.7 18.4 8.7 .9 -3.2 -12.0 -11.0 Nondurable goods....................... 171.1 147.8 57.7 56.2 28.9 59.6 44.5 78.2 Services............................... 310.7 324.5 91.8 67.6 78.4 70.7 77.1 80.5 Personal interest payments\1\............ 20.4 30.0 -6.1 18.6 15.6 -1.5 -15.0 -11.4 Personal current transfer payments....... 7.0 10.1 3.4 1.6 1.2 1.7 1.0 1.2 To government.......................... 3.7 5.0 1.4 1.2 1.0 .7 .4 .8 To the rest of the world (net)......... 3.2 5.2 1.9 .3 .3 1.0 .6 .4 Equals: Personal saving.................... 38.2 -13.3 23.2 -78.2 15.7 -4.4 -21.8 259.3 Addendum: Real disposable personal income, billions of chained (2000) dollars\2\............ 285.6 237.0 91.5 -13.2 66.6 12.0 -15.2 237.5 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. 1. Consists of nonmortgage interest paid by households. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. Table 5.--Personal Income and Its Disposition, Percent Change from Preceding Period (Months) [Months seasonally adjusted at monthly rates] ----------------------------------------------------------------------------------------------------------------------------------- Dec 07 Jan 08\r\ Feb 08\r\ Mar 08\r\ Apr 08\r\ May 08\r\ Jun 08\r\ Jul 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Based on current-dollar measures ---------------------------------------------------------------------------------------- Personal income............................ .4 .1 .2 .4 .2 1.8 .1 -.7 Compensation of employees, received...... .4 .1 .3 .4 .1 .3 .2 .3 Wage and salary disbursements.......... .4 .0 .3 .5 .1 .3 .2 .3 Supplements to wages and salaries...... .3 .6 .2 .1 .4 .3 .2 .2 Proprietors' income with inventory valuation and capital consumption adjustments............................. -.4 .0 -.5 .2 .0 .5 .7 .4 Rental income of persons with capital consumption adjustment.................. -4.2 2.5 1.8 4.6 14.9 14.6 13.8 7.2 Personal income receipts on assets....... .1 -.1 -.1 -.1 -.2 -.2 -.2 .9 Personal interest income............... -.3 -.6 -.6 -.6 -.7 -.7 -.7 1.1 Personal dividend income............... .8 .5 .6 .6 .5 .6 .6 .6 Personal current transfer receipts....... 1.7 .5 .6 .8 .9 10.4 -1.0 -6.9 Less: Contributions for government social insurance............................... .2 1.2 .2 .4 .0 .2 .1 .2 Less: Personal current taxes............... .3 .3 .2 .4 -.5 -24.7 18.7 1.8 Equals: Disposable personal income......... .5 .0 .2 .4 .3 5.7 -1.9 -1.1 Addenda: Personal consumption expenditures........ .2 .4 .0 .6 .4 .8 .6 .2 Durable goods.......................... -1.0 -.1 .3 -.9 -.2 .3 -1.3 -1.5 Nondurable goods....................... .3 .4 -.4 1.2 .7 1.2 1.5 .3 Services............................... .4 .5 .1 .5 .3 .6 .6 .5 ---------------------------------------------------------------------------------------- Based on chained (2000) dollar measures ---------------------------------------------------------------------------------------- Real disposable personal income.......... .2 -.3 .0 .1 .1 5.2 -2.6 -1.7 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. Table 6.--Personal Income and Its Disposition, Percent Change from Preceding Period (Years and Quarters) [Quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2006 2007 I 07 II 07 III 07 IV 07 I 08\r\ II 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Based on current-dollar measures ---------------------------------------------------------------------------------------- Personal income............................ 7.1 6.1 9.1 3.7 5.4 4.9 3.0 7.3 Compensation of employees, received...... 5.8 5.2 8.0 1.4 4.1 5.3 3.5 3.1 Wage and salary disbursements.......... 6.3 5.6 8.8 1.1 4.3 5.6 3.3 3.1 Supplements to wages and salaries...... 3.8 3.7 4.6 2.7 3.4 3.9 4.5 3.1 Proprietors' income with inventory valuation and capital consumption adjustments............................. 5.7 4.1 5.9 5.1 5.3 3.8 -.8 2.1 Rental income of persons with capital consumption adjustment.................. 8.3 -9.6 -28.9 161.0 -22.7 -27.3 5.3 252.2 Personal income receipts on assets....... 14.3 9.6 9.3 11.1 10.1 5.1 -.4 -2.1 Personal interest income............... 10.1 7.9 9.6 12.1 10.4 2.1 -5.7 -8.0 Personal dividend income............... 21.7 12.4 8.7 9.7 9.8 9.8 8.1 7.0 Personal current transfer receipts....... 5.4 6.9 17.2 .8 5.1 4.1 9.6 37.7 Less: Contributions for government social insurance............................... 5.9 4.3 8.5 -.3 2.9 3.9 7.1 1.9 Less: Personal current taxes............... 12.0 10.3 18.3 8.5 3.3 5.1 3.9 -39.8 Equals: Disposable personal income......... 6.4 5.5 7.9 3.0 5.7 4.9 2.9 16.1 Addenda: Personal consumption expenditures........ 5.9 5.5 7.4 5.7 4.6 5.3 4.5 6.0 Durable goods.......................... 3.1 2.9 7.1 3.3 .3 -1.2 -4.3 -4.1 Nondurable goods....................... 6.8 5.5 8.8 8.4 4.2 8.7 6.3 11.0 Services............................... 6.0 5.9 6.7 4.8 5.6 4.9 5.3 5.5 ---------------------------------------------------------------------------------------- Based on chained (2000) dollar measures ---------------------------------------------------------------------------------------- Real disposable personal income.......... 3.5 2.8 4.4 -.6 3.1 .6 -.7 11.4 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. Table 7.--Real Personal Consumption Expenditures by Major Type of Product (Months) ----------------------------------------------------------------------------------------------------------------------------------- Dec 07 Jan 08 Feb 08 Mar 08 Apr 08\r\ May 08\r\ Jun 08\r\ Jul 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Billions of chained (2000) dollars, seasonally adjusted at annual rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 8,307.2 8,317.3 8,304.6 8,326.2 8,337.3 8,363.8 8,355.5 8,322.5 Durable goods............................ 1,243.0 1,239.7 1,241.8 1,229.5 1,230.3 1,237.3 1,219.8 1,200.8 Nondurable goods......................... 2,400.4 2,395.4 2,388.3 2,410.1 2,419.3 2,427.4 2,421.3 2,400.5 Services................................. 4,689.6 4,706.2 4,699.6 4,707.3 4,708.3 4,720.8 4,730.7 4,732.5 ---------------------------------------------------------------------------------------- Change from preceding period in billions of chained (2000) dollars, seasonally adjusted at annual rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... -4.6 10.1 -12.7 21.6 11.1 26.5 -8.3 -33.0 Durable goods............................ -9.5 -3.3 2.1 -12.3 .8 7.0 -17.5 -19.0 Nondurable goods......................... -4.8 -5.0 -7.1 21.8 9.2 8.1 -6.1 -20.8 Services................................. 6.7 16.6 -6.6 7.7 1.0 12.5 9.9 1.8 ---------------------------------------------------------------------------------------- Percent change from preceding period in chained (2000) dollars, seasonally adjusted at monthly rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... -.1 .1 -.2 .3 .1 .3 -.1 -.4 Durable goods............................ -.8 -.3 .2 -1.0 .1 .6 -1.4 -1.6 Nondurable goods......................... -.2 -.2 -.3 .9 .4 .3 -.3 -.9 Services................................. .1 .4 -.1 .2 .0 .3 .2 .0 ----------------------------------------------------------------------------------------------------------------------------------- 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 I 07 II 07 III 07 IV 07 I 08 II 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Billions of chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 8,029.0 8,252.8 8,197.2 8,237.3 8,278.5 8,298.2 8,316.1 8,352.2 Durable goods............................ 1,185.1 1,242.4 1,227.3 1,242.3 1,249.4 1,250.6 1,237.0 1,229.1 Nondurable goods......................... 2,335.3 2,392.6 2,380.1 2,391.5 2,398.6 2,400.2 2,397.9 2,422.6 Services................................. 4,529.9 4,646.2 4,616.1 4,632.7 4,659.8 4,676.1 4,704.3 4,719.9 ---------------------------------------------------------------------------------------- Change from preceding period in billions of chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 237.3 223.8 77.3 40.1 41.2 19.7 17.9 36.1 Durable goods............................ 50.7 57.3 26.6 15.0 7.1 1.2 -13.6 -7.9 Nondurable goods......................... 82.6 57.3 20.3 11.4 7.1 1.6 -2.3 24.7 Services................................. 109.0 116.3 34.6 16.6 27.1 16.3 28.2 15.6 ---------------------------------------------------------------------------------------- Percent change from preceding period in chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 3.0 2.8 3.9 2.0 2.0 1.0 .9 1.7 Durable goods............................ 4.5 4.8 9.2 5.0 2.3 .4 -4.3 -2.5 Nondurable goods......................... 3.7 2.5 3.5 1.9 1.2 .3 -.4 4.2 Services................................. 2.5 2.6 3.1 1.4 2.4 1.4 2.4 1.3 ----------------------------------------------------------------------------------------------------------------------------------- r Revised Table 9.--Price Indexes for Personal Consumption Expenditures: Level and Percent Change From Preceding Period (Months) ----------------------------------------------------------------------------------------------------------------------------------- Dec 07 Jan 08 Feb 08 Mar 08 Apr 08\r\ May 08\r\ Jun 08\r\ Jul 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Chain-type price indexes (2000=100), seasonally adjusted ---------------------------------------------------------------------------------------- Personal consumption expenditures (PCE).... 119.678 120.052 120.212 120.585 120.873 121.407 122.312 123.087 Durable goods............................ 86.398 86.508 86.598 86.636 86.382 86.123 86.204 86.276 Nondurable goods......................... 122.229 123.030 122.903 123.245 123.631 124.651 126.813 128.321 Services................................. 126.534 126.760 127.083 127.557 127.938 128.427 128.897 129.476 Addenda: PCE excluding food and energy............ 115.706 115.975 116.141 116.357 116.532 116.720 117.016 117.336 Market-based PCE\1\...................... 117.865 118.262 118.392 118.701 119.016 119.590 120.588 121.385 Market-based PCE excluding food and energy\1\........................... 112.624 112.900 113.029 113.134 113.320 113.487 113.775 114.030 ---------------------------------------------------------------------------------------- Percent change from preceding period in price indexes, seasonally adjusted at monthly rates ---------------------------------------------------------------------------------------- PCE........................................ .3 .3 .1 .3 .2 .4 .7 .6 Durable goods............................ -.2 .1 .1 .0 -.3 -.3 .1 .1 Nondurable goods......................... .5 .7 -.1 .3 .3 .8 1.7 1.2 Services................................. .2 .2 .3 .4 .3 .4 .4 .4 Addenda: PCE excluding food and energy............ .2 .2 .1 .2 .2 .2 .3 .3 Market-based PCE\1\...................... .3 .3 .1 .3 .3 .5 .8 .7 Market-based PCE excluding food and energy\1\........................... .2 .2 .1 .1 .2 .1 .3 .2 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised 1. This index is a supplemental measure that is based on household expenditures for which there are observable price measures. It excludes most implicit prices (for example, the services furnished without payment by financial intermediaries) and the expenses of nonprofit institutions. Table 10.--Real Disposable Personal Income and Real Personal Consumption Expenditures: Percent Change From Month One Year Ago ----------------------------------------------------------------------------------------------------------------------------------- Dec 07 Jan 08\r\ Feb 08\r\ Mar 08\r\ Apr 08\r\ May 08\r\ Jun 08\r\ Jul 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Disposable personal income................. 1.6 .8 .5 .4 .9 6.3 3.4 1.2 Personal consumption expenditures.......... 1.9 1.7 1.2 1.5 1.4 1.5 1.3 .7 Durable goods............................ 2.0 1.3 1.4 -.3 -.1 -1.7 -1.4 -2.6 Nondurable goods......................... 1.0 .8 .5 .9 1.6 1.4 1.0 -.3 Services................................. 2.3 2.1 1.4 2.2 1.5 2.1 2.0 1.8 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. Table 11.--Price Indexes for Personal Consumption Expenditures: Percent Change From Month One Year Ago ----------------------------------------------------------------------------------------------------------------------------------- Dec 07 Jan 08 Feb 08 Mar 08 Apr 08\r\ May 08\r\ Jun 08\r\ Jul 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal consumption expenditures (PCE).... 3.5 3.6 3.5 3.4 3.4 3.5 4.0 4.5 Durable goods............................ -1.6 -1.3 -1.4 -1.2 -1.2 -1.3 -1.3 -1.0 Nondurable goods......................... 6.0 6.5 6.1 5.6 5.5 5.6 7.3 8.2 Services................................. 3.4 3.2 3.1 3.3 3.3 3.4 3.5 3.8 Addenda: PCE excluding food and energy............ 2.3 2.2 2.1 2.2 2.2 2.2 2.3 2.4 Market-based PCE\1\...................... 3.5 3.5 3.4 3.3 3.3 3.5 4.1 4.7 Market-based PCE excluding food and energy\1\........................... 1.9 1.8 1.7 1.7 1.8 1.9 2.0 2.1 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised 1. This index is a supplemental measure that is based on household expenditures for which there are observable price measures. It excludes most implicit prices (for example, the services furnished without payment by financial intermediaries) and the expenses of nonprofit institutions.