EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, AUGUST 28, 2009 James E. Rankin: (202) 606-5301 (Personal Income) BEA 09-38 Brendan Leary: (202) 606-5302 (Personal Outlays) PERSONAL INCOME AND OUTLAYS: JULY 2009 Personal income increased $3.8 billion, or less than 0.1 percent, and disposable personal income (DPI) decreased $4.6 billion, or less than 0.1 percent, in July, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $25.0 billion, or 0.2 percent. In June, personal income decreased $133.4 billion, or 1.1 percent, DPI decreased $119.9 billion, or 1.1 percent, and PCE increased $60.9 billion, or 0.6 percent, based on revised estimates. Real disposable income decreased 0.1 percent in July, compared with a decrease of 1.6 percent in June. Real PCE increased 0.2 percent, compared with an increase of 0.1 percent. 2009 Mar. Apr. May June July (Percent change from preceding month) Personal income, current dollars -0.5 0.3 1.4 -1.1 0.0 Disposable personal income: Current dollars -0.2 0.9 1.7 -1.1 0.0 Chained (2005) dollars -0.1 0.8 1.6 -1.6 -0.1 Personal consumption expenditures: Current dollars -0.3 -0.1 0.1 0.6 0.2 Chained (2005) dollars -0.2 -0.2 0.1 0.1 0.2 The pattern of recent changes in personal income reflected selected provisions of the American Recovery and Reinvestment Act of 2009. These provisions boosted personal current transfer receipts in May much more than in June. Excluding these receipts, which are discussed more fully below, personal income increased $9.4 billion, or 0.1 percent, in July, increased $18.6 billion, or 0.2 percent, in June, and increased $9.6 billion, or 0.1 percent, in May. Excluding these receipts, real DPI decreased less than 0.1 percent in July, following a decrease of 0.2 percent in June, and an increase of 0.1 percent in May. Wages and salaries Private wage and salary disbursements increased $6.7 billion in July, in contrast to a decrease of $24.5 billion in June. Goods-producing industries' payrolls increased $1.4 billion, in contrast to a decrease of $10.0 billion; manufacturing payrolls increased $5.0 billion, in contrast to a decrease of $5.9 billion. Services-producing industries' payrolls increased $5.3 billion, in contrast to a decrease of $14.5 billion. Government wage and salary disbursements increased $2.1 billion compared with an increase of $3.5 billion. Other personal income Supplements to wages and salaries increased $1.8 billion in July, compared with an increase of $0.3 billion in June. Proprietors' income increased $5.8 billion in July, compared with an increase of $4.6 billion in June. Farm proprietors' income decreased $2.0 billion, in contrast to an increase of $1.9 billion. Nonfarm proprietors' income increased $7.8 billion, compared with an increase of $2.6 billion. Rental income of persons increased $8.7 billion in July, compared with an increase of $5.4 billion in June. Personal income receipts on assets (personal interest income plus personal dividend income) decreased $17.3 billion, compared with a decrease of $2.7 billion. Personal current transfer receipts decreased $3.3 billion in July, compared with a decrease of $122.3 billion in June. The June change reflected one-time payments of $250 to eligible individuals receiving veteran benefits, which boosted the level of personal current transfer receipts by $5.6 billion at an annual rate in June. The May change had reflected one-time payments of $250 to eligible individuals receiving social security, supplemental security income, and railroad retirement benefits, which boosted personal current transfers by $157.6 billion in May. Contributions for government social insurance -- a subtraction in calculating personal income -- increased $0.8 billion in July, in contrast to a decrease of $2.7 billion in June. Personal current taxes and disposable personal income Personal current taxes increased $8.4 billion in July, in contrast to a decrease of $13.4 billion in June. Disposable personal income (DPI) -- personal income less personal current taxes -- decreased $4.6 billion, or less than 0.1 percent, in July, compared with a decrease of $119.9 billion, or 1.1 percent in June. Personal outlays and personal saving Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $23.8 billion in July, compared with an increase of $54.5 billion in June. PCE increased $25.0 billion, compared with an increase of $60.9 billion. Personal saving -- DPI less personal outlays – was $458.5 billion in July, compared with $486.8 billion in June. Personal saving as a percentage of disposable personal income was 4.2 percent in July, compared with 4.5 percent in June. 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, go to http://www.bea.gov/national/nipaweb/Nipa-Frb.asp. Real DPI, real PCE and PCE price index Real DPI -- DPI adjusted to remove price changes -- decreased 0.1 percent in July, compared with a decrease of 1.6 percent in June. Real PCE -- PCE adjusted to remove price changes -- increased 0.2 percent in July, compared with an increase of 0.1 percent in June. Purchases of durable goods increased 1.8 percent, compared with an increase of 0.8 percent. Purchases of motor vehicles and parts more than accounted for the increase in July and accounted for most of the increase in June. Motor vehicle spending in July was impacted by the federal CARS program (popularly called “cash for clunkers”). See the Personal Income and Outlays technical note for more information. Purchases of nondurable goods decreased 0.3 percent in July, the same decrease as in June. Purchases of services increased 0.1 percent, the same increase as in June. PCE price index -- The price index for PCE increased less than 0.1 percent in July, compared with an increase of 0.5 percent in June. The PCE price index, excluding food and energy, increased 0.1 percent, compared with an increase of 0.2 percent. Revisions Estimates of personal income and DPI have been revised for January through June; estimates of PCE have been revised for April through June. Changes in personal income, current-dollar and chained (2005) dollar DPI, and current-dollar and chained (2005) dollar PCE for May and June -- revised and as published in last month's release -- are shown below. For January through June, the revision to wages and salaries reflected the incorporation of the most recently available BLS tabulations for first-quarter private wages and salaries from the quarterly census of employment and wages. Wages and salaries were revised down in all six months. 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...................... 155.1 167.2 1.3 1.4 -159.8 -133.4 -1.3 -1.1 Disposable personal income: Current Dollars...................... 168.7 179.0 1.6 1.7 -143.8 -119.9 -1.3 -1.1 Chained (2005) dollars............... 149.8 158.4 1.5 1.6 -186.7 -164.5 -1.8 -1.6 Personal consumption expenditures: Current dollars..................... 9.0 12.4 0.1 0.1 41.4 60.9 0.4 0.6 Chained (2005) dollars.............. 3.2 5.5 0.0 0.1 -12.0 6.2 -0.1 0.1 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 – October 1, 2009 at 8:30 A.M. EDT for Personal Income and Outlays for August. - 5 - -more- ________________________ NOTE. - - Monthly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified. Month-to-month dollar changes are differences between these published estimates. Month-to-month percent changes are calculated from unrounded data and are not annualized. “Real” estimates are in chained (2005) dollars. This news release is available on BEA’s Web site at www.bea.gov/newsreleases/rels.htm. -more- Table 1. Personal Income and Its Disposition (Months) [Billions of dollars; months seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- Dec 08 Jan 09\r\ Feb 09\r\ Mar 09\r\ Apr 09\r\ May 09\r\ Jun 09\r\ Jul 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 12,196.6 12,038.3 11,937.1 11,882.7 11,919.8 12,087.0 11,953.6 11,957.4 Compensation of employees, received...... 8,021.2 7,863.0 7,798.4 7,756.0 7,737.2 7,731.5 7,710.7 7,721.2 Wage and salary disbursements.......... 6,514.0 6,362.2 6,301.0 6,260.3 6,241.4 6,234.5 6,213.4 6,222.3 Private industries................... 5,358.0 5,193.2 5,129.4 5,085.5 5,060.8 5,049.5 5,025.0 5,031.7 Goods-producing industries......... 1,176.4 1,125.6 1,105.5 1,090.7 1,078.7 1,067.5 1,057.5 1,058.9 Manufacturing.................... 721.7 690.4 680.4 672.1 667.2 659.5 653.6 658.6 Services-producing industries...... 4,181.6 4,067.6 4,023.9 3,994.8 3,982.1 3,982.0 3,967.5 3,972.8 Trade, transportation, and utilities....................... 1,033.4 1,011.5 1,002.8 992.7 990.2 991.6 986.2 985.7 Other services-producing industries...................... 3,148.2 3,056.1 3,021.1 3,002.1 2,991.9 2,990.4 2,981.2 2,987.1 Government........................... 1,156.0 1,169.0 1,171.5 1,174.8 1,180.6 1,185.0 1,188.5 1,190.6 Supplements to wages and salaries...... 1,507.2 1,500.9 1,497.4 1,495.7 1,495.8 1,496.9 1,497.2 1,499.0 Employer contributions for employee pension and insurance funds......... 1,035.2 1,036.7 1,037.8 1,038.9 1,040.3 1,041.8 1,043.4 1,045.0 Employer contributions for government social insurance.................... 472.0 464.2 459.6 456.8 455.5 455.2 453.8 453.9 Proprietors' income with inventory valuation and capital consumption adjustments............................. 1,069.9 1,050.2 1,036.2 1,027.1 1,026.6 1,028.5 1,033.1 1,038.9 Farm................................... 36.7 31.0 26.1 25.0 27.9 30.5 32.4 30.4 Nonfarm................................ 1,033.2 1,019.2 1,010.1 1,002.1 998.8 998.1 1,000.7 1,008.5 Rental income of persons with capital consumption adjustment.................. 238.9 242.2 245.9 249.7 254.1 259.4 264.8 273.5 Personal income receipts on assets....... 1,942.8 1,894.0 1,845.5 1,797.1 1,794.3 1,791.5 1,788.8 1,771.5 Personal interest income............... 1,278.9 1,261.0 1,243.4 1,225.8 1,234.8 1,243.7 1,252.7 1,249.5 Personal dividend income............... 663.9 633.0 602.1 571.2 559.5 547.8 536.1 522.1 Personal current transfer receipts....... 1,913.8 1,966.0 1,979.7 2,016.2 2,068.4 2,236.2 2,113.9 2,110.6 Government social benefits to persons.. 1,881.0 1,933.5 1,947.2 1,983.6 2,035.8 2,203.5 2,081.1 2,077.9 Old-age, survivors, disability, and health insurance benefits........... 1,090.2 1,120.4 1,129.1 1,136.0 1,148.4 1,145.7 1,159.1 1,158.9 Government unemployment insurance benefits............................ 83.9 87.8 92.4 108.3 113.9 121.6 130.0 127.5 Other................................ 706.9 725.3 725.7 739.3 773.4 936.2 792.0 791.5 Other current transfer receipts, from business (net)........................ 32.8 32.5 32.5 32.6 32.6 32.7 32.7 32.8 Less: Contributions for government social insurance, domestic..................... 990.0 977.1 968.6 963.3 960.9 960.2 957.5 958.3 Less: Personal current taxes............... 1,416.3 1,215.9 1,189.5 1,156.4 1,096.3 1,084.4 1,071.0 1,079.4 Equals: Disposable personal income......... 10,780.2 10,822.4 10,747.7 10,726.3 10,823.5 11,002.5 10,882.6 10,878.0 Less: Personal outlays..................... 10,270.6 10,347.8 10,386.0 10,353.1 10,335.1 10,341.2 10,395.7 10,419.5 Personal consumption expenditures........ 9,897.0 9,972.7 10,011.3 9,978.9 9,968.0 9,980.4 10,041.3 10,066.3 Goods.................................. 3,114.1 3,183.0 3,219.7 3,190.3 3,166.9 3,179.5 3,227.3 3,234.4 Durable goods........................ 1,005.5 1,031.2 1,030.2 1,014.3 1,000.8 1,011.9 1,020.3 1,033.9 Nondurable goods..................... 2,108.6 2,151.8 2,189.5 2,176.0 2,166.0 2,167.6 2,207.0 2,200.5 Services............................... 6,782.9 6,789.7 6,791.6 6,788.6 6,801.1 6,800.9 6,814.0 6,832.0 Personal interest payments\1\............ 221.9 221.2 220.4 219.7 213.0 206.3 199.6 198.0 Personal current transfer payments....... 151.6 153.9 154.2 154.6 154.1 154.4 154.8 155.2 To government.......................... 89.8 90.1 90.4 90.7 91.0 91.4 91.7 92.1 To the rest of the world (net)......... 61.8 63.8 63.8 63.8 63.0 63.0 63.0 63.0 Equals: Personal saving.................... 509.7 474.5 361.7 373.2 488.4 661.4 486.8 458.5 Personal saving as a percentage of disposable personal income.............. 4.7 4.4 3.4 3.5 4.5 6.0 4.5 4.2 Addenda: Personal income excluding current transfer receipts, billions of chained (2005) dollars\2\............... 9,514.1 9,302.5 9,169.3 9,094.5 9,073.6 9,067.1 9,008.2 9,011.5 Disposable personal income: Total, billions of chained (2005) dollars\2\............................ 9,974.3 9,995.3 9,897.0 9,887.0 9,968.9 10,127.3 9,962.8 9,955.2 Per capita: Current dollars...................... 35,247 35,362 35,095 35,003 35,296 35,855 35,436 35,393 Chained (2005) dollars............... 32,612 32,659 32,317 32,264 32,509 33,002 32,441 32,390 Population (midperiod, thousands)\3\..... 305,845 306,049 306,243 306,443 306,648 306,865 307,103 307,352 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2009. 1. Consists of nonmortgage interest paid by households. 2. The current-dollar measure is 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 I 08 II 08 III 08 IV 08 I 09\r\ II 09\r\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 11,894.1 12,238.8 12,142.2 12,292.9 12,286.6 12,233.5 11,952.7 11,986.8 Compensation of employees, received...... 7,862.7 8,042.4 8,017.5 8,032.8 8,069.1 8,050.3 7,805.8 7,726.4 Wage and salary disbursements.......... 6,408.9 6,545.9 6,533.0 6,539.2 6,567.7 6,543.5 6,307.8 6,229.8 Private industries................... 5,319.8 5,404.6 5,407.7 5,402.8 5,419.2 5,388.6 5,136.0 5,045.1 Goods-producing industries......... 1,212.9 1,206.5 1,217.1 1,210.6 1,206.2 1,192.2 1,107.3 1,067.9 Manufacturing.................... 753.5 742.0 750.1 745.3 740.3 732.2 681.0 660.1 Services-producing industries...... 4,106.9 4,198.1 4,190.6 4,192.2 4,213.0 4,196.5 4,028.8 3,977.2 Trade, transportation, and utilities....................... 1,044.7 1,048.3 1,055.3 1,050.7 1,047.8 1,039.4 1,002.3 989.4 Other services-producing industries...................... 3,062.2 3,149.8 3,135.3 3,141.5 3,165.2 3,157.1 3,026.5 2,987.8 Government........................... 1,089.1 1,141.3 1,125.3 1,136.4 1,148.5 1,154.9 1,171.8 1,184.7 Supplements to wages and salaries...... 1,453.8 1,496.6 1,484.5 1,493.5 1,501.4 1,506.8 1,498.0 1,496.7 Employer contributions for employee pension and insurance funds......... 993.0 1,023.9 1,014.0 1,021.7 1,026.7 1,033.2 1,037.8 1,041.8 Employer contributions for government social insurance.................... 460.8 472.7 470.5 471.8 474.7 473.6 460.2 454.8 Proprietors' income with inventory valuation and capital consumption adjustments............................. 1,096.4 1,106.3 1,115.2 1,111.9 1,114.4 1,083.6 1,037.8 1,029.4 Farm................................... 39.4 48.7 57.2 49.4 49.3 39.0 27.3 30.2 Nonfarm................................ 1,056.9 1,057.5 1,057.9 1,062.5 1,065.1 1,044.5 1,010.5 999.2 Rental income of persons with capital consumption adjustment.................. 144.9 210.4 179.9 202.8 222.2 236.7 245.9 259.4 Personal income receipts on assets....... 2,031.5 1,994.4 2,020.8 1,997.3 2,001.4 1,958.1 1,845.5 1,791.5 Personal interest income............... 1,266.4 1,308.0 1,304.6 1,306.6 1,327.8 1,292.9 1,243.4 1,243.7 Personal dividend income............... 765.1 686.4 716.2 690.7 673.7 665.2 602.1 547.8 Personal current transfer receipts....... 1,718.0 1,875.9 1,794.1 1,937.0 1,874.3 1,898.0 1,987.3 2,139.5 Government social benefits to persons.. 1,687.8 1,843.2 1,761.5 1,904.4 1,841.7 1,865.3 1,954.7 2,106.8 Old-age, survivors, disability, and health insurance benefits........... 1,003.7 1,070.3 1,049.1 1,064.5 1,080.5 1,087.0 1,128.5 1,151.1 Government unemployment insurance benefits............................ 32.3 50.6 35.7 38.7 57.7 70.3 96.2 121.9 Other................................ 651.7 722.4 676.7 801.3 703.5 708.0 730.1 833.9 Other current transfer receipts, from business (net)........................ 30.2 32.6 32.6 32.6 32.6 32.7 32.5 32.7 Less: Contributions for government social insurance, domestic..................... 959.3 990.6 985.3 988.9 994.9 993.3 969.7 959.5 Less: Personal current taxes............... 1,490.9 1,432.4 1,531.8 1,326.2 1,437.3 1,434.3 1,187.3 1,083.9 Equals: Disposable personal income......... 10,403.1 10,806.4 10,610.4 10,966.7 10,849.3 10,799.1 10,765.4 10,902.9 Less: Personal outlays..................... 10,224.3 10,520.0 10,484.1 10,592.2 10,613.6 10,389.9 10,362.3 10,357.3 Personal consumption expenditures........ 9,826.4 10,129.9 10,095.1 10,194.7 10,220.1 10,009.8 9,987.7 9,996.6 Goods.................................. 3,365.0 3,403.2 3,447.2 3,474.9 3,463.0 3,227.5 3,197.7 3,191.2 Durable goods........................ 1,160.5 1,095.2 1,145.8 1,126.5 1,088.5 1,019.9 1,025.2 1,011.0 Nondurable goods..................... 2,204.5 2,308.0 2,301.4 2,348.4 2,374.5 2,207.6 2,172.4 2,180.2 Services............................... 6,461.4 6,726.8 6,647.9 6,719.8 6,757.1 6,782.3 6,790.0 6,805.3 Personal interest payments\1\............ 256.8 237.7 239.8 243.9 238.3 228.8 220.4 206.3 Personal current transfer payments....... 141.0 152.3 149.2 153.6 155.2 151.3 154.2 154.4 To government.......................... 82.3 87.9 86.1 87.4 88.5 89.5 90.4 91.4 To the rest of the world (net)......... 58.7 64.5 63.1 66.2 66.7 61.8 63.8 63.0 Equals: Personal saving.................... 178.9 286.4 126.3 374.4 235.7 409.2 403.1 545.5 Personal saving as a percentage of disposable personal income.............. 1.7 2.7 1.2 3.4 2.2 3.8 3.7 5.0 Addenda: Personal income excluding current transfer receipts, billions of chained (2005) dollars\2\............... 9,645.4 9,504.6 9,583.9 9,498.8 9,442.0 9,494.4 9,188.7 9,049.6 Disposable personal income: Total, billions of chained (2005) dollars\2\............................ 9,860.6 9,911.3 9,826.8 10,059.0 9,838.3 9,920.4 9,926.4 10,019.6 Per capita: Current dollars...................... 34,478 35,486 34,960 36,059 35,586 35,335 35,153 35,529 Chained (2005) dollars............... 32,679 32,546 32,379 33,075 32,270 32,460 32,413 32,651 Population (midperiod, thousands)\3\..... 301,737 304,529 303,498 304,128 304,872 305,620 306,245 306,872 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2009. 1. Consists of nonmortgage interest paid by households. 2. The current-dollar measure is 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 08 Jan 09\r\ Feb 09\r\ Mar 09\r\ Apr 09\r\ May 09\r\ Jun 09\r\ Jul 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ -39.0 -158.3 -101.2 -54.4 37.1 167.2 -133.4 3.8 Compensation of employees, received...... -37.0 -158.2 -64.6 -42.4 -18.8 -5.7 -20.8 10.5 Wage and salary disbursements.......... -36.2 -151.8 -61.2 -40.7 -18.9 -6.9 -21.1 8.9 Private industries................... -37.1 -164.8 -63.8 -43.9 -24.7 -11.3 -24.5 6.7 Goods-producing industries......... -21.0 -50.8 -20.1 -14.8 -12.0 -11.2 -10.0 1.4 Manufacturing.................... -14.4 -31.3 -10.0 -8.3 -4.9 -7.7 -5.9 5.0 Services-producing industries...... -16.1 -114.0 -43.7 -29.1 -12.7 -.1 -14.5 5.3 Trade, transportation, and utilities....................... -7.4 -21.9 -8.7 -10.1 -2.5 1.4 -5.4 -.5 Other services-producing industries...................... -8.7 -92.1 -35.0 -19.0 -10.2 -1.5 -9.2 5.9 Government........................... .9 13.0 2.5 3.3 5.8 4.4 3.5 2.1 Supplements to wages and salaries...... -.7 -6.3 -3.5 -1.7 .1 1.1 .3 1.8 Employer contributions for employee pension and insurance funds......... 1.4 1.5 1.1 1.1 1.4 1.5 1.6 1.6 Employer contributions for government social insurance.................... -2.2 -7.8 -4.6 -2.8 -1.3 -.3 -1.4 .1 Proprietors' income with inventory valuation and capital consumption adjustments............................. -12.4 -19.7 -14.0 -9.1 -.5 1.9 4.6 5.8 Farm................................... -1.8 -5.7 -4.9 -1.1 2.9 2.6 1.9 -2.0 Nonfarm................................ -10.6 -14.0 -9.1 -8.0 -3.3 -.7 2.6 7.8 Rental income of persons with capital consumption adjustment.................. 1.9 3.3 3.7 3.8 4.4 5.3 5.4 8.7 Personal income receipts on assets....... -13.7 -48.8 -48.5 -48.4 -2.8 -2.8 -2.7 -17.3 Personal interest income............... -12.7 -17.9 -17.6 -17.6 9.0 8.9 9.0 -3.2 Personal dividend income............... -.9 -30.9 -30.9 -30.9 -11.7 -11.7 -11.7 -14.0 Personal current transfer receipts....... 18.0 52.2 13.7 36.5 52.2 167.8 -122.3 -3.3 Government social benefits to persons.. 17.9 52.5 13.7 36.4 52.2 167.7 -122.4 -3.2 Old-age, survivors, disability, and health insurance benefits........... 1.5 30.2 8.7 6.9 12.4 -2.7 13.4 -.2 Government unemployment insurance benefits............................ 15.9 3.9 4.6 15.9 5.6 7.7 8.4 -2.5 Other................................ .5 18.4 .4 13.6 34.1 162.8 -144.2 -.5 Other current transfer receipts, from business (net)........................ .1 -.3 .0 .1 .0 .1 .0 .1 Less: Contributions for government social insurance, domestic..................... -4.3 -12.9 -8.5 -5.3 -2.4 -.7 -2.7 .8 Less: Personal current taxes............... -15.3 -200.4 -26.4 -33.1 -60.1 -11.9 -13.4 8.4 Equals: Disposable personal income......... -23.7 42.2 -74.7 -21.4 97.2 179.0 -119.9 -4.6 Less: Personal outlays..................... -123.9 77.2 38.2 -32.9 -18.0 6.1 54.5 23.8 Personal consumption expenditures........ -116.7 75.7 38.6 -32.4 -10.9 12.4 60.9 25.0 Goods.................................. -115.7 68.9 36.7 -29.4 -23.4 12.6 47.8 7.1 Durable goods........................ -19.4 25.7 -1.0 -15.9 -13.5 11.1 8.4 13.6 Nondurable goods..................... -96.3 43.2 37.7 -13.5 -10.0 1.6 39.4 -6.5 Services............................... -1.0 6.8 1.9 -3.0 12.5 -.2 13.1 18.0 Personal interest payments\1\............ -7.5 -.7 -.8 -.7 -6.7 -6.7 -6.7 -1.6 Personal current transfer payments....... .3 2.3 .3 .4 -.5 .3 .4 .4 To government.......................... .3 .3 .3 .3 .3 .4 .3 .4 To the rest of the world (net)......... .0 2.0 .0 .0 -.8 .0 .0 .0 Equals: Personal saving.................... 100.2 -35.2 -112.8 11.5 115.2 173.0 -174.6 -28.3 Addenda: Personal income excluding current transfer receipts, billions of chained (2005) dollars\2\....................... -4.5 -211.6 -133.2 -74.8 -20.9 -6.5 -58.9 3.3 Disposable personal income, billions of chained (2005) dollars\2\............ 28.4 21.0 -98.3 -10.0 81.9 158.4 -164.5 -7.6 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2009. 1. Consists of nonmortgage interest paid by households. 2. The current-dollar measure is 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 I 08 II 08 III 08 IV 08 I 09\r\ II 09\r\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 626.0 344.7 41.9 150.7 -6.3 -53.1 -280.8 34.1 Compensation of employees, received...... 387.0 179.7 38.2 15.3 36.3 -18.8 -244.5 -79.4 Wage and salary disbursements.......... 340.0 137.0 25.7 6.2 28.5 -24.2 -235.7 -78.0 Private industries................... 286.1 84.8 6.3 -4.9 16.4 -30.6 -252.6 -90.9 Goods-producing industries......... 36.9 -6.4 -8.2 -6.5 -4.4 -14.0 -84.9 -39.4 Manufacturing.................... 14.8 -11.5 -7.5 -4.8 -5.0 -8.1 -51.2 -20.9 Services-producing industries...... 249.1 91.2 14.5 1.6 20.8 -16.5 -167.7 -51.6 Trade, transportation, and utilities....................... 48.7 3.6 -1.6 -4.6 -2.9 -8.4 -37.1 -12.9 Other services-producing industries...................... 200.4 87.6 16.1 6.2 23.7 -8.1 -130.6 -38.7 Government........................... 53.9 52.2 19.5 11.1 12.1 6.4 16.9 12.9 Supplements to wages and salaries...... 46.9 42.8 12.4 9.0 7.9 5.4 -8.8 -1.3 Employer contributions for employee pension and insurance funds......... 32.9 30.9 8.8 7.7 5.0 6.5 4.6 4.0 Employer contributions for government social insurance.................... 14.1 11.9 3.6 1.3 2.9 -1.1 -13.4 -5.4 Proprietors' income with inventory valuation and capital consumption adjustments............................. -36.6 9.9 13.1 -3.3 2.5 -30.8 -45.8 -8.4 Farm................................... 10.1 9.3 9.3 -7.8 -.1 -10.3 -11.7 2.9 Nonfarm................................ -46.7 .6 3.7 4.6 2.6 -20.6 -34.0 -11.3 Rental income of persons with capital consumption adjustment.................. -1.6 65.5 11.9 22.9 19.4 14.5 9.2 13.5 Personal income receipts on assets....... 201.8 -37.1 -49.0 -23.5 4.1 -43.3 -112.6 -54.0 Personal interest income............... 138.9 41.6 -18.2 2.0 21.2 -34.9 -49.5 .3 Personal dividend income............... 62.9 -78.7 -30.8 -25.5 -17.0 -8.5 -63.1 -54.3 Personal current transfer receipts....... 113.0 157.9 40.4 142.9 -62.7 23.7 89.3 152.2 Government social benefits to persons.. 104.2 155.4 40.3 142.9 -62.7 23.6 89.4 152.1 Old-age, survivors, disability, and health insurance benefits........... 60.4 66.6 26.0 15.4 16.0 6.5 41.5 22.6 Government unemployment insurance benefits............................ 2.4 18.3 1.8 3.0 19.0 12.6 25.9 25.7 Other................................ 41.3 70.7 12.5 124.6 -97.8 4.5 22.1 103.8 Other current transfer receipts, from business (net)........................ 8.8 2.4 .2 .0 .0 .1 -.2 .2 Less: Contributions for government social insurance, domestic..................... 37.5 31.3 12.7 3.6 6.0 -1.6 -23.6 -10.2 Less: Personal current taxes............... 138.5 -58.5 9.9 -205.6 111.1 -3.0 -247.0 -103.4 Equals: Disposable personal income......... 487.4 403.3 32.0 356.3 -117.4 -50.2 -33.7 137.5 Less: Personal outlays..................... 543.6 295.7 59.1 108.1 21.4 -223.7 -27.6 -5.0 Personal consumption expenditures........ 503.7 303.5 75.9 99.6 25.4 -210.3 -22.1 8.9 Goods.................................. 143.3 38.2 -1.7 27.7 -11.9 -235.5 -29.8 -6.5 Durable goods........................ 27.5 -65.3 -26.9 -19.3 -38.0 -68.6 5.3 -14.2 Nondurable goods..................... 115.8 103.5 25.2 47.0 26.1 -166.9 -35.2 7.8 Services............................... 360.5 265.4 77.6 71.9 37.3 25.2 7.7 15.3 Personal interest payments\1\............ 26.7 -19.1 -20.9 4.1 -5.6 -9.5 -8.4 -14.1 Personal current transfer payments....... 13.0 11.3 4.2 4.4 1.6 -3.9 2.9 .2 To government.......................... 5.9 5.6 1.5 1.3 1.1 1.0 .9 1.0 To the rest of the world (net)......... 7.1 5.8 2.7 3.1 .5 -4.9 2.0 -.8 Equals: Personal saving.................... -56.1 107.5 -27.2 248.1 -138.7 173.5 -6.1 142.4 Addenda: Personal income excluding current transfer receipts, billions of chained (2005) dollars\2\....................... 240.6 -140.8 -85.7 -85.1 -56.8 52.4 -305.7 -139.1 Disposable personal income, billions of chained (2005) dollars\2\............ 209.9 50.7 -59.4 232.2 -220.7 82.1 6.0 93.2 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2009. 1. Consists of nonmortgage interest paid by households. 2. The current-dollar measure is 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 08 Jan 09\r\ Feb 09\r\ Mar 09\r\ Apr 09\r\ May 09\r\ Jun 09\r\ Jul 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Based on current-dollar measures ---------------------------------------------------------------------------------------- Personal income............................ -.3 -1.3 -.8 -.5 .3 1.4 -1.1 .0 Compensation of employees, received...... -.5 -2.0 -.8 -.5 -.2 -.1 -.3 .1 Wage and salary disbursements.......... -.6 -2.3 -1.0 -.6 -.3 -.1 -.3 .1 Supplements to wages and salaries...... .0 -.4 -.2 -.1 .0 .1 .0 .1 Proprietors' income with inventory valuation and capital consumption adjustments............................. -1.1 -1.8 -1.3 -.9 .0 .2 .4 .6 Rental income of persons with capital consumption adjustment.................. .8 1.4 1.5 1.5 1.8 2.1 2.1 3.3 Personal income receipts on assets....... -.7 -2.5 -2.6 -2.6 -.2 -.2 -.2 -1.0 Personal interest income............... -1.0 -1.4 -1.4 -1.4 .7 .7 .7 -.3 Personal dividend income............... -.1 -4.7 -4.9 -5.1 -2.1 -2.1 -2.1 -2.6 Personal current transfer receipts....... .9 2.7 .7 1.8 2.6 8.1 -5.5 -.2 Less: Contributions for government social insurance, domestic..................... -.4 -1.3 -.9 -.6 -.2 -.1 -.3 .1 Less: Personal current taxes............... -1.1 -14.2 -2.2 -2.8 -5.2 -1.1 -1.2 .8 Equals: Disposable personal income......... -.2 .4 -.7 -.2 .9 1.7 -1.1 .0 Addenda: Personal consumption expenditures........ -1.2 .8 .4 -.3 -.1 .1 .6 .2 Goods.................................. -3.6 2.2 1.2 -.9 -.7 .4 1.5 .2 Durable goods........................ -1.9 2.6 -.1 -1.5 -1.3 1.1 .8 1.3 Nondurable goods..................... -4.4 2.0 1.7 -.6 -.5 .1 1.8 -.3 Services............................... .0 .1 .0 .0 .2 .0 .2 .3 ---------------------------------------------------------------------------------------- Based on chained (2005) dollar measures ---------------------------------------------------------------------------------------- Real personal income excluding current transfer receipts....................... .0 -2.2 -1.4 -.8 -.2 -.1 -.6 .0 Real disposable personal income.......... .3 .2 -1.0 -.1 .8 1.6 -1.6 -.1 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2009. Table 6. Personal Income and Its Disposition, Percent Change from Preceding Period (Years and Quarters) [Quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2007 2008 I 08 II 08 III 08 IV 08 I 09\r\ II 09\r\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Based on current-dollar measures ---------------------------------------------------------------------------------------- Personal income............................ 5.6 2.9 1.4 5.1 -.2 -1.7 -8.9 1.1 Compensation of employees, received...... 5.2 2.3 1.9 .8 1.8 -.9 -11.6 -4.0 Wage and salary disbursements.......... 5.6 2.1 1.6 .4 1.8 -1.5 -13.6 -4.9 Supplements to wages and salaries...... 3.3 2.9 3.4 2.4 2.1 1.4 -2.3 -.4 Proprietors' income with inventory valuation and capital consumption adjustments............................. -3.2 .9 4.9 -1.2 .9 -10.6 -15.9 -3.2 Rental income of persons with capital consumption adjustment.................. -1.1 45.2 31.3 61.7 44.0 28.8 16.4 23.9 Personal income receipts on assets....... 11.0 -1.8 -9.1 -4.6 .8 -8.4 -21.1 -11.2 Personal interest income............... 12.3 3.3 -5.4 .6 6.6 -10.1 -14.5 .1 Personal dividend income............... 9.0 -10.3 -15.5 -13.5 -9.5 -5.0 -32.8 -31.5 Personal current transfer receipts....... 7.0 9.2 9.5 35.9 -12.3 5.1 20.2 34.3 Less: Contributions for government social insurance, domestic..................... 4.1 3.3 5.4 1.4 2.4 -.6 -9.2 -4.1 Less: Personal current taxes............... 10.2 -3.9 2.6 -43.8 38.0 -.8 -53.1 -30.5 Equals: Disposable personal income......... 4.9 3.9 1.2 14.1 -4.2 -1.8 -1.2 5.2 Addenda: Personal consumption expenditures........ 5.4 3.1 3.1 4.0 1.0 -8.0 -.9 .4 Goods.................................. 4.4 1.1 -.2 3.3 -1.4 -24.5 -3.7 -.8 Durable goods........................ 2.4 -5.6 -8.9 -6.6 -12.8 -22.9 2.1 -5.4 Nondurable goods..................... 5.5 4.7 4.5 8.4 4.5 -25.3 -6.2 1.4 Services............................... 5.9 4.1 4.8 4.4 2.2 1.5 .5 .9 ---------------------------------------------------------------------------------------- Based on chained (2005) dollar measures ---------------------------------------------------------------------------------------- Real personal income excluding current transfer receipts....................... 2.6 -1.5 -.9 -.9 -.6 .6 -3.2 -1.5 Real disposable personal income.......... 2.2 .5 -2.4 9.8 -8.5 3.4 .2 3.8 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2009. Table 7. Real Personal Consumption Expenditures by Major Type of Product (Months) ----------------------------------------------------------------------------------------------------------------------------------- Dec 08 Jan 09 Feb 09 Mar 09 Apr 09\r\ May 09\r\ Jun 09\r\ Jul 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Billions of chained (2005) dollars, seasonally adjusted at annual rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 9,157.1 9,210.6 9,218.9 9,198.1 9,181.0 9,186.5 9,192.7 9,212.4 Goods.................................... 3,073.5 3,128.8 3,141.3 3,119.2 3,095.1 3,106.3 3,107.6 3,120.1 Durable goods.......................... 1,066.2 1,094.7 1,091.8 1,075.2 1,059.5 1,072.9 1,081.2 1,100.9 Nondurable goods....................... 2,000.3 2,028.0 2,042.5 2,035.9 2,026.8 2,025.6 2,019.6 2,014.5 Services................................. 6,077.0 6,078.3 6,074.9 6,074.9 6,080.3 6,075.5 6,080.3 6,087.9 ---------------------------------------------------------------------------------------- Change from preceding period in billions of chained (2005) dollars, seasonally adjusted at annual rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... -61.3 53.5 8.3 -20.8 -17.1 5.5 6.2 19.7 Goods.................................... -57.8 55.3 12.5 -22.1 -24.1 11.2 1.3 12.5 Durable goods.......................... -16.5 28.5 -2.9 -16.6 -15.7 13.4 8.3 19.7 Nondurable goods....................... -40.6 27.7 14.5 -6.6 -9.1 -1.2 -6.0 -5.1 Services................................. -6.6 1.3 -3.4 .0 5.4 -4.8 4.8 7.6 ---------------------------------------------------------------------------------------- Percent change from preceding period in chained (2005) dollars, seasonally adjusted at monthly rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... -.7 .6 .1 -.2 -.2 .1 .1 .2 Goods.................................... -1.8 1.8 .4 -.7 -.8 .4 .0 .4 Durable goods.......................... -1.5 2.7 -.3 -1.5 -1.5 1.3 .8 1.8 Nondurable goods....................... -2.0 1.4 .7 -.3 -.5 -.1 -.3 -.3 Services................................. -.1 .0 -.1 .0 .1 -.1 .1 .1 ----------------------------------------------------------------------------------------------------------------------------------- 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 I 08 II 08 III 08 IV 08 I 09 II 09\r\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Billions of chained (2005) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 9,313.9 9,290.9 9,349.6 9,351.0 9,267.7 9,195.3 9,209.2 9,186.7 Goods.................................... 3,273.7 3,206.0 3,262.1 3,257.8 3,193.6 3,110.4 3,129.8 3,103.0 Durable goods.......................... 1,199.9 1,146.3 1,193.2 1,175.7 1,139.6 1,076.8 1,087.2 1,071.2 Nondurable goods....................... 2,074.8 2,057.3 2,070.1 2,081.4 2,051.5 2,026.1 2,035.5 2,024.0 Services................................. 6,040.8 6,083.1 6,087.1 6,092.5 6,072.4 6,080.4 6,076.0 6,078.7 ---------------------------------------------------------------------------------------- Change from preceding period in billions of chained (2005) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 240.4 -23.0 -14.0 1.4 -83.3 -72.4 13.9 -22.5 Goods.................................... 99.8 -67.7 -42.7 -4.3 -64.2 -83.2 19.4 -26.8 Durable goods.......................... 49.5 -53.6 -28.0 -17.5 -36.1 -62.8 10.4 -16.0 Nondurable goods....................... 51.2 -17.5 -15.9 11.3 -29.9 -25.4 9.4 -11.5 Services................................. 141.1 42.3 27.4 5.4 -20.1 8.0 -4.4 2.7 ---------------------------------------------------------------------------------------- Percent change from preceding period in chained (2005) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 2.6 -.2 -.6 .1 -3.5 -3.1 .6 -1.0 Goods.................................... 3.1 -2.1 -5.1 -.5 -7.7 -10.0 2.5 -3.4 Durable goods.......................... 4.3 -4.5 -8.9 -5.7 -11.7 -20.3 3.9 -5.8 Nondurable goods....................... 2.5 -.8 -3.0 2.2 -5.6 -4.9 1.9 -2.2 Services................................. 2.4 .7 1.8 .4 -1.3 .5 -.3 .2 ----------------------------------------------------------------------------------------------------------------------------------- r Revised Table 9. Price Indexes for Personal Consumption Expenditures: Level and Percent Change From Preceding Period (Months) ----------------------------------------------------------------------------------------------------------------------------------- Dec 08 Jan 09 Feb 09 Mar 09 Apr 09\r\ May 09\r\ Jun 09\r\ Jul 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Chain-type price indexes (2005=100), seasonally adjusted ---------------------------------------------------------------------------------------- Personal consumption expenditures (PCE).... 108.079 108.272 108.592 108.485 108.569 108.639 109.228 109.267 Goods.................................... 101.353 101.755 102.511 102.292 102.333 102.377 103.870 103.682 Durable goods.......................... 94.335 94.227 94.386 94.365 94.489 94.345 94.390 93.940 Nondurable goods....................... 105.449 106.126 107.207 106.883 106.879 107.021 109.290 109.242 Services................................. 111.615 111.702 111.797 111.747 111.853 111.938 112.065 112.220 Addenda: Energy goods and services\1\............. 100.514 102.273 105.708 102.315 99.926 100.158 108.548 108.145 PCE excluding food and energy\2\......... 107.878 108.010 108.202 108.307 108.583 108.690 108.858 108.967 Market-based PCE\3\...................... 107.930 108.211 108.605 108.541 108.605 108.652 109.299 109.289 Market-based PCE excluding food and energy\3\........................... 107.676 107.900 108.155 108.346 108.632 108.717 108.882 108.946 ---------------------------------------------------------------------------------------- Percent change from preceding period in price indexes, seasonally adjusted at monthly rates ---------------------------------------------------------------------------------------- PCE........................................ -.5 .2 .3 -.1 .1 .1 .5 .0 Goods.................................... -1.8 .4 .7 -.2 .0 .0 1.5 -.2 Durable goods.......................... -.4 -.1 .2 .0 .1 -.2 .0 -.5 Nondurable goods....................... -2.4 .6 1.0 -.3 .0 .1 2.1 .0 Services................................. .1 .1 .1 .0 .1 .1 .1 .1 Addenda: Energy goods and services\1\............. -9.9 1.8 3.4 -3.2 -2.3 .2 8.4 -.4 PCE excluding food and energy\2\......... .0 .1 .2 .1 .3 .1 .2 .1 Market-based PCE\3\...................... -.5 .3 .4 -.1 .1 .0 .6 .0 Market-based PCE excluding food and energy\3\........................... .1 .2 .2 .2 .3 .1 .2 .1 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised 1. Consists of gasoline and other energy goods and of electricity and gas. 2. Food consists of food and beverages purchased for off-premises consumption; food services, which include purchased meals and beverages, are not classified as food. 3. 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, financial services furnished without payment) and the final consumption expenses of nonprofit institutions serving households. Table 10. Real Disposable Personal Income and Real Personal Consumption Expenditures: Percent Change From Month One Year Ago ----------------------------------------------------------------------------------------------------------------------------------- Dec 08 Jan 09\r\ Feb 09\r\ Mar 09\r\ Apr 09\r\ May 09\r\ Jun 09\r\ Jul 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- Disposable personal income................. 1.0 1.5 .7 .8 1.6 -1.8 -.9 .6 Personal consumption expenditures.......... -2.2 -1.6 -1.3 -1.7 -1.9 -1.7 -1.6 -.8 Goods.................................... -6.8 -4.4 -3.2 -4.6 -5.2 -4.8 -4.3 -2.5 Durable goods.......................... -11.9 -9.1 -8.5 -9.1 -10.2 -9.0 -7.4 -3.3 Nondurable goods....................... -4.3 -2.1 -.5 -2.4 -2.7 -2.7 -2.9 -2.2 Services................................. .2 -.1 -.3 -.2 -.3 -.2 -.2 .1 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2009. Table 11. Price Indexes for Personal Consumption Expenditures: Percent Change From Month One Year Ago ----------------------------------------------------------------------------------------------------------------------------------- Dec 08 Jan 09 Feb 09 Mar 09 Apr 09\r\ May 09\r\ Jun 09\r\ Jul 09\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal consumption expenditures (PCE).... .6 .5 .6 .2 .1 -.3 -.4 -.8 Goods.................................... -3.5 -3.5 -2.9 -3.5 -3.5 -3.7 -3.5 -4.5 Durable goods.......................... -1.6 -1.8 -1.7 -1.8 -1.6 -1.5 -1.4 -1.9 Nondurable goods....................... -4.3 -4.3 -3.5 -4.2 -4.3 -4.8 -4.5 -5.6 Services................................. 2.6 2.5 2.4 2.0 1.8 1.5 1.2 1.0 Addenda: Energy goods and services\1\............. -23.5 -22.8 -20.6 -24.8 -26.1 -27.7 -26.2 -29.0 PCE excluding food and energy\2\......... 1.8 1.7 1.8 1.7 1.7 1.6 1.5 1.4 Market-based PCE\3\...................... .6 .6 .7 .4 .2 -.1 -.2 -.8 Market-based PCE excluding food and energy\3\........................... 2.1 2.1 2.1 2.1 2.2 2.1 2.0 1.8 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised 1. Consists of gasoline and other energy goods and of electricity and gas. 2. Food consists of food and beverages purchased for off-premises consumption; food services, which include purchased meals and beverages, are not classified as food. 3. 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, financial services furnished without payment) and the final consumption expenses of nonprofit institutions serving households.