EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, WEDNESDAY, NOVEMBER 26, 2008 James E. Rankin: (202) 606-5301 (Personal Income)BEA 08-52 Brendan Leary: (202) 606-5302 (Personal Outlays) PERSONAL INCOME AND OUTLAYS: OCTOBER 2008 Personal income increased $42.4 billion, or 0.3 percent, and disposable personal income (DPI) increased $45.1 billion, or 0.4 percent, in October, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) decreased $102.8 billion, or 1.0 percent. In September, personal income increased $8.0 billion, or 0.1 percent, DPI increased $11.6 billion, or 0.1 percent, and PCE decreased $33.7 billion, or 0.3 percent, based on revised estimates. Real DPI increased 1.0 percent in October, compared with an increase of less than 0.1 percent in September. Real PCE decreased 0.5 percent, compared with a decrease of 0.4 percent. 2008 June July Aug. Sept. Oct. (Percent change from preceding month) Personal income, current dollars 0.1 -0.8 0.3 0.1 0.3 Disposable personal income: Current dollars -1.8 -1.0 -1.1 0.1 0.4 Chained (2000) dollars -2.6 -1.6 -1.1 0.0 1.0 Personal consumption expenditures: Current dollars 0.5 -0.1 -0.1 -0.3 -1.0 Chained (2000) dollars -0.2 -0.6 -0.1 -0.4 -0.5 The October and September changes in personal income were effected by Hurricane Ike, which struck the Gulf Coast region, especially impacting coastal Texas and Louisiana, on September 13, 2008. In September, rental income of persons was reduced by about $27 billion (at an annual rate), proprietors' income was reduced by about $9 billion (at an annual rate) to reflect uninsured losses of residential and business property, and "other current transfer receipts from business (net)" was boosted by about $27 billion (at an annual rate) to reflect insurance benefits paid to persons. The net effect of these adjustments was to lower September personal income $8.5 billion. Because other effects of the hurricane were embedded in BEA's source data and could not be separately identified, BEA did not attempt to quantify their impact. Wages and salaries Private wage and salary disbursements increased $3.9 billion in October, in contrast to a decrease of $6.6 billion in September. Goods-producing industries' payrolls decreased $1.7 billion, compared with a decrease of $3.9 billion; manufacturing payrolls decreased $0.6 billion, compared with a decrease of $3.0 billion. Services-producing industries' payrolls increased $5.6 billion, in contrast to a decrease of $2.6 billion. Government wage and salary disbursements increased $4.5 billion, compared with an increase of $2.6 billion. Other personal income Supplements to wages and salaries increased $2.5 billion in October, compared with an increase of $0.5 billion in September. Proprietors' income increased $1.7 billion in October, in contrast to a decrease of $6.9 billion in September. Farm proprietors' income decreased $6.9 billion, compared with a decrease of $2.6 billion. Nonfarm proprietors' income increased $8.7 billion, in contrast to a decrease of $4.3 billion. Changes in nonfarm proprietors' income reflected the impact of Hurricane Ike, which subtracted $8.8 billion (at an annual rate) in September. Rental income of persons increased $30.6 billion in October, in contrast to a decrease of $24.6 billion in September. Changes in rental income reflected the impact of the hurricane, which subtracted $26.6 billion (at an annual rate) in September. Personal income receipts on assets (personal interest income plus personal dividend income) increased $7.4 billion in October, compared with an increase of $2.2 billion in September. Personal current transfer receipts decreased $7.7 billion in October, in contrast to an increase of $39.6 billion in September. Changes in personal current transfer receipts primarily reflected the impact of net insurance settlements associated with the hurricane, which added $26.9 billion (at an annual rate) in September. Contributions for government social insurance -- a subtraction in calculating personal income -- increased $0.3 billion in October, in contrast to a decrease of $1.1 billion in September. Personal current taxes and disposable personal income Personal current taxes decreased $2.6 billion in October, compared with a decrease of $3.6 billion in September. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $45.1 billion, or 0.4 percent, in October, compared with an increase of $11.6 billion, or 0.1 percent, in September. Personal outlays and personal saving Personal outlays -- PCE, personal interest payments, and personal current transfer payments decreased $105.1 billion in October, compared with a decrease of $34.2 billion in September. PCE decreased $102.8 billion, compared with a decrease of $33.7 billion. Personal saving -- DPI less personal outlays -- was $260.9 billion in October, compared with $110.8 billion in September. Personal saving as a percentage of disposable personal income was 2.4 percent in October, compared with 1.0 percent in September. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods. For more information, see the FAQs on "Personal Saving" on BEA's Web site. For a comparison of personal saving in BEA's national income and product accounts with personal saving in the Federal Reserve Board's flow of funds accounts and data on changes in net worth (which help finance consumption), go to http://www.bea.gov/bea/dn/nipaweb/Nipa-Frb.asp. Real DPI and real PCE Real DPI -- DPI adjusted to remove price changes -- increased 1.0 percent in October, compared with an increase of less than 0.1 percent in September. Real PCE -- PCE adjusted to remove price changes -- decreased 0.5 percent in October, compared with a decrease of 0.4 percent in September. Purchases of durable goods decreased 3.8 percent, compared with a decrease of 3.6 percent. Purchases of motor vehicles and parts accounted for most of the decreases in durable goods in October and September. Purchases of nondurable goods decreased 0.6 percent in October, the same decrease as in September. Purchases of services increased 0.2 percent in October, the same increase as in September. PCE price index -- The price index for PCE decreased 0.6 percent in October, in contrast to an increase of 0.1 percent in September. Prices, excluding food and energy, decreased less than 0.1 percent, in contrast to an increase of 0.2 percent. Revisions For April through June, the revisions to wages and salaries reflected the incorporation of newly available BLS tabulations of second-quarter private wages and salaries from the quarterly census of employment and wages. Wages and salaries were revised down for all three months. Revisions to personal current taxes and to contributions for government social insurance reflected the revisions to wages and salaries. Changes in personal income, current-dollar and chained (2000) dollar DPI, and current-dollar and chained (2000) dollar PCE for August and September -- revised and as published in last month's release -- are shown below. Change from preceding month August September Previous Revised Previous Revised Previous Revised Previous Revised (Billions of dollars) (Percent) (Billions of dollars) (Percent) Personal Income: Current dollars...................... 44.8 30.5 0.4 0.3 24.5 8.0 0.2 0.1 Disposable personal income: Current dollars...................... -107.7 -119.7 -1.0 -1.1 25.7 11.6 0.2 0.1 Chained (2000) dollars............... -89.3 -97.4 -1.0 -1.1 11.7 0.8 0.1 0.0 Personal consumption expenditures: Current dollars...................... 4.5 -13.1 0.0 -0.1 -33.6 -33.7 -0.3 -0.3 Chained (2000) dollars............... 1.9 -10.6 0.0 -0.1 -36.0 -35.7 -0.4 -0.4 This news release presents revised estimates of wages and salaries, personal taxes, and contributions for government social insurance for April through June 2008 (second quarter). These estimates reflect newly available second-quarter wage and salary tabulations from the quarterly census of employment and wages from the Bureau of Labor Statistics. BEA's national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. * * * Next release -- December 24, 2008, at 8:30 A.M. EST for Personal Income and Outlays for November. Table 1.--Personal Income and Its Disposition (Months) [Billions of dollars; months seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- Mar 08 Apr 08\r\ May 08\r\ Jun 08\r\ Jul 08\r\ Aug 08\r\ Sep 08\r\ Oct 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 11,999.0 12,003.1 12,219.8 12,233.6 12,133.8 12,164.3 12,172.3 12,214.7 Compensation of employees, received...... 8,039.4 8,018.1 8,033.1 8,049.3 8,067.9 8,091.8 8,088.3 8,099.2 Wage and salary disbursements.......... 6,545.7 6,519.1 6,530.9 6,543.8 6,559.4 6,580.7 6,576.7 6,585.1 Private industries................... 5,432.2 5,401.1 5,407.3 5,415.4 5,425.1 5,442.1 5,435.5 5,439.4 Goods-producing industries......... 1,221.2 1,211.3 1,212.4 1,214.6 1,217.4 1,221.1 1,217.2 1,215.5 Manufacturing.................... 750.0 744.5 744.9 745.6 746.3 744.5 741.5 740.9 Services-producing industries...... 4,211.0 4,189.8 4,194.9 4,200.9 4,207.7 4,220.9 4,218.3 4,223.9 Trade, transportation, and utilities....................... 1,053.9 1,047.9 1,047.1 1,050.3 1,048.9 1,049.1 1,046.7 1,043.8 Other services-producing industries...................... 3,157.1 3,141.9 3,147.8 3,150.6 3,158.8 3,171.8 3,171.5 3,180.1 Government........................... 1,113.4 1,118.1 1,123.6 1,128.4 1,134.3 1,138.6 1,141.2 1,145.7 Supplements to wages and salaries...... 1,493.7 1,498.9 1,502.1 1,505.5 1,508.5 1,511.1 1,511.6 1,514.1 Employer contributions for employee pension and insurance funds......... 1,015.7 1,021.5 1,024.4 1,027.4 1,029.8 1,031.3 1,032.6 1,034.9 Employer contributions for government social insurance.................... 478.0 477.4 477.7 478.2 478.8 479.8 479.1 479.1 Proprietors' income with inventory valuation and capital consumption adjustments............................. 1,071.4 1,071.2 1,076.1 1,083.5 1,089.9 1,079.4 1,072.5 1,074.2 Farm................................... 41.0 39.4 38.4 36.1 34.9 32.4 29.8 22.9 Nonfarm................................ 1,030.4 1,031.9 1,037.7 1,047.4 1,055.0 1,047.0 1,042.7 1,051.4 Rental income of persons with capital consumption adjustment.................. 40.5 49.1 58.3 68.3 70.1 71.9 47.3 77.9 Personal income receipts on assets....... 2,051.7 2,051.8 2,052.3 2,052.8 2,054.7 2,056.7 2,058.9 2,066.3 Personal interest income............... 1,217.2 1,213.0 1,208.7 1,204.5 1,211.5 1,218.5 1,225.5 1,228.4 Personal dividend income............... 834.5 838.8 843.6 848.3 843.2 838.2 833.4 837.9 Personal current transfer receipts....... 1,791.3 1,807.5 1,995.3 1,976.0 1,848.9 1,864.3 1,903.9 1,896.2 Government social benefits to persons.. 1,758.9 1,775.1 1,962.9 1,943.5 1,816.4 1,831.7 1,844.4 1,863.5 Old-age, survivors, disability, and health insurance benefits........... 1,042.5 1,041.0 1,051.8 1,057.0 1,067.4 1,067.5 1,072.0 1,074.5 Government unemployment insurance benefits............................ 39.3 40.6 41.5 42.0 47.6 62.4 67.5 68.4 Other................................ 677.1 693.5 869.6 844.5 701.5 701.9 704.9 720.6 Other current transfer receipts, from business (net)........................ 32.4 32.4 32.4 32.4 32.5 32.6 59.5 32.7 Less: Contributions for government social insurance............................... 995.3 994.5 995.4 996.3 997.7 999.8 998.7 999.0 Less: Personal current taxes............... 1,540.2 1,527.5 1,147.9 1,363.0 1,374.6 1,524.8 1,521.2 1,518.6 Equals: Disposable personal income......... 10,458.8 10,475.6 11,071.9 10,870.6 10,759.2 10,639.5 10,651.1 10,696.2 Less: Personal outlays..................... 10,436.3 10,474.2 10,544.3 10,595.9 10,588.0 10,574.5 10,540.3 10,435.2 Personal consumption expenditures........ 10,039.7 10,073.5 10,144.2 10,196.4 10,189.5 10,176.4 10,142.7 10,039.9 Durable goods.......................... 1,065.3 1,063.2 1,065.5 1,049.1 1,016.8 1,033.8 994.6 954.4 Nondurable goods....................... 2,970.2 2,990.4 3,025.4 3,063.0 3,068.4 3,042.0 3,029.2 2,952.2 Services............................... 6,004.2 6,019.9 6,053.3 6,084.2 6,104.3 6,100.6 6,118.8 6,133.3 Personal interest payments\1\............ 255.6 254.7 253.8 252.9 252.0 251.1 250.3 247.6 Personal current transfer payments....... 141.0 146.1 146.4 146.7 146.5 146.9 147.3 147.8 To government.......................... 83.1 83.4 83.7 84.0 84.4 84.8 85.3 85.8 To the rest of the world (net)......... 57.9 62.7 62.7 62.7 62.1 62.1 62.1 62.1 Equals: Personal saving.................... 22.5 1.4 527.5 274.7 171.3 65.0 110.8 260.9 Personal saving as a percentage of disposable personal income.............. .2 .0 4.8 2.5 1.6 .6 1.0 2.4 Addenda: Disposable personal income: Total, billions of chained (2000) dollars\2\............................ 8,673.8 8,667.3 9,119.1 8,885.5 8,744.2 8,646.8 8,647.6 8,733.5 Per capita: Current dollars...................... 34,396 34,427 36,358 35,668 35,272 34,848 34,854 34,972 Chained (2000) dollars............... 28,526 28,484 29,946 29,154 28,666 28,321 28,298 28,555 Population (midperiod, thousands)\3\..... 304,068 304,287 304,521 304,775 305,039 305,311 305,589 305,851 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the second 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 II 07 III 07 IV 07 I 08 II 08\r\ III 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 10,993.9 11,663.2 11,577.5 11,730.4 11,872.1 11,960.5 12,152.2 12,156.8 Compensation of employees, received...... 7,432.6 7,818.6 7,760.1 7,839.3 7,941.0 8,009.7 8,033.5 8,082.7 Wage and salary disbursements.......... 6,027.2 6,362.0 6,310.7 6,377.7 6,465.5 6,518.0 6,531.3 6,572.3 Private industries................... 5,004.2 5,286.7 5,242.5 5,297.0 5,373.4 5,408.3 5,407.9 5,434.2 Goods-producing industries......... 1,167.2 1,205.4 1,200.7 1,204.3 1,218.2 1,217.7 1,212.7 1,218.6 Manufacturing.................... 731.2 746.0 744.0 743.4 750.2 748.4 745.0 744.1 Services-producing industries...... 3,837.1 4,081.3 4,041.9 4,092.6 4,155.3 4,190.5 4,195.2 4,215.6 Trade, transportation, and utilities....................... 986.7 1,035.2 1,036.5 1,035.3 1,048.3 1,050.4 1,048.4 1,048.2 Other services-producing industries...................... 2,850.4 3,046.1 3,005.4 3,057.4 3,106.9 3,140.2 3,146.7 3,167.4 Government........................... 1,023.0 1,075.2 1,068.1 1,080.8 1,092.1 1,109.7 1,123.4 1,138.0 Supplements to wages and salaries...... 1,405.3 1,456.6 1,449.4 1,461.6 1,475.5 1,491.7 1,502.2 1,510.4 Employer contributions for employee pension and insurance funds......... 956.8 991.9 987.7 996.5 1,005.9 1,015.3 1,024.4 1,031.2 Employer contributions for government social insurance.................... 448.5 464.7 461.7 465.1 469.6 476.4 477.8 479.2 Proprietors' income with inventory valuation and capital consumption adjustments............................. 1,014.7 1,056.2 1,050.2 1,063.8 1,073.8 1,071.7 1,076.9 1,080.6 Farm................................... 16.2 44.0 42.3 47.4 47.1 41.6 38.0 32.4 Nonfarm................................ 998.6 1,012.2 1,007.9 1,016.4 1,026.7 1,030.1 1,039.0 1,048.2 Rental income of persons with capital consumption adjustment.................. 44.3 40.0 44.6 41.8 38.6 39.1 58.6 63.1 Personal income receipts on assets....... 1,824.8 2,000.1 1,982.5 2,030.9 2,056.2 2,054.1 2,052.3 2,056.8 Personal interest income............... 1,125.4 1,214.3 1,206.1 1,236.2 1,242.7 1,224.6 1,208.7 1,218.5 Personal dividend income............... 699.4 785.8 776.5 794.7 813.5 829.5 843.6 838.3 Personal current transfer receipts....... 1,603.0 1,713.3 1,699.2 1,720.6 1,737.8 1,778.1 1,926.3 1,872.4 Government social benefits to persons.. 1,578.1 1,681.4 1,667.5 1,688.0 1,704.7 1,745.8 1,893.9 1,830.9 Old-age, survivors, disability, and health insurance benefits........... 938.9 999.4 997.5 1,008.8 1,009.6 1,032.4 1,050.0 1,068.9 Government unemployment insurance benefits............................ 29.9 32.3 31.2 32.5 34.3 38.2 41.4 59.2 Other................................ 609.3 649.6 638.8 646.7 660.9 675.3 802.5 702.8 Other current transfer receipts, from business (net)........................ 24.9 31.9 31.7 32.5 33.1 32.2 32.4 41.5 Less: Contributions for government social insurance............................... 925.5 965.1 959.1 966.0 975.3 992.2 995.4 998.7 Less: Personal current taxes............... 1,353.2 1,492.8 1,489.4 1,501.6 1,520.5 1,535.0 1,346.1 1,473.5 Equals: Disposable personal income......... 9,640.7 10,170.5 10,088.0 10,228.8 10,351.5 10,425.5 10,806.0 10,683.3 Less: Personal outlays..................... 9,570.0 10,113.1 10,056.9 10,182.0 10,309.2 10,404.9 10,538.2 10,567.6 Personal consumption expenditures........ 9,207.2 9,710.2 9,657.5 9,765.6 9,892.7 10,002.3 10,138.0 10,169.5 Durable goods.......................... 1,052.1 1,082.8 1,085.3 1,086.2 1,083.0 1,071.0 1,059.3 1,015.1 Nondurable goods....................... 2,685.2 2,833.0 2,817.7 2,846.6 2,906.2 2,950.7 3,026.2 3,046.5 Services............................... 5,469.9 5,794.4 5,754.4 5,832.8 5,903.5 5,980.6 6,052.5 6,107.9 Personal interest payments\1\............ 235.4 265.4 262.6 278.2 276.7 261.7 253.8 251.1 Personal current transfer payments....... 127.4 137.5 136.9 138.1 139.8 140.8 146.4 146.9 To government.......................... 76.2 81.2 80.8 81.8 82.5 82.9 83.7 84.8 To the rest of the world (net)......... 51.1 56.3 56.0 56.3 57.3 57.9 62.7 62.1 Equals: Personal saving.................... 70.7 57.4 31.1 46.8 42.4 20.6 267.9 115.7 Personal saving as a percentage of disposable personal income.............. .7 .6 .3 .5 .4 .2 2.5 1.1 Addenda: Disposable personal income: Total, billions of chained (2000) dollars\2\............................ 8,407.0 8,644.0 8,604.5 8,671.1 8,683.1 8,667.9 8,891.0 8,679.5 Per capita: Current dollars...................... 32,222 33,667 33,441 33,820 34,138 34,309 35,485 34,991 Chained (2000) dollars............... 28,098 28,614 28,523 28,669 28,636 28,525 29,196 28,428 Population (midperiod, thousands)\3\..... 299,199 302,087 301,667 302,452 303,225 303,868 304,528 305,313 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the second 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] ----------------------------------------------------------------------------------------------------------------------------------- Mar 08 Apr 08\r\ May 08\r\ Jun 08\r\ Jul 08\r\ Aug 08\r\ Sep 08\r\ Oct 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 46.6 4.1 216.7 13.8 -99.8 30.5 8.0 42.4 Compensation of employees, received...... 34.2 -21.3 15.0 16.2 18.6 23.9 -3.5 10.9 Wage and salary disbursements.......... 32.7 -26.6 11.8 12.9 15.6 21.3 -4.0 8.4 Private industries................... 29.3 -31.1 6.2 8.1 9.7 17.0 -6.6 3.9 Goods-producing industries......... 5.3 -9.9 1.1 2.2 2.8 3.7 -3.9 -1.7 Manufacturing.................... 2.8 -5.5 .4 .7 .7 -1.8 -3.0 -.6 Services-producing industries...... 24.0 -21.2 5.1 6.0 6.8 13.2 -2.6 5.6 Trade, transportation, and utilities....................... 6.5 -6.0 -.8 3.2 -1.4 .2 -2.4 -2.9 Other services-producing industries...................... 17.5 -15.2 5.9 2.8 8.2 13.0 -.3 8.6 Government........................... 3.3 4.7 5.5 4.8 5.9 4.3 2.6 4.5 Supplements to wages and salaries...... 1.4 5.2 3.2 3.4 3.0 2.6 .5 2.5 Employer contributions for employee pension and insurance funds......... -.5 5.8 2.9 3.0 2.4 1.5 1.3 2.3 Employer contributions for government social insurance.................... 1.9 -.6 .3 .5 .6 1.0 -.7 .0 Proprietors' income with inventory valuation and capital consumption adjustments............................. 2.3 -.2 4.9 7.4 6.4 -10.5 -6.9 1.7 Farm................................... -1.1 -1.6 -1.0 -2.3 -1.2 -2.5 -2.6 -6.9 Nonfarm................................ 3.4 1.5 5.8 9.7 7.6 -8.0 -4.3 8.7 Rental income of persons with capital consumption adjustment.................. 1.7 8.6 9.2 10.0 1.8 1.8 -24.6 30.6 Personal income receipts on assets....... -2.5 .1 .5 .5 1.9 2.0 2.2 7.4 Personal interest income............... -7.4 -4.2 -4.3 -4.2 7.0 7.0 7.0 2.9 Personal dividend income............... 4.9 4.3 4.8 4.7 -5.1 -5.0 -4.8 4.5 Personal current transfer receipts....... 14.7 16.2 187.8 -19.3 -127.1 15.4 39.6 -7.7 Government social benefits to persons.. 14.6 16.2 187.8 -19.4 -127.1 15.3 12.7 19.1 Old-age, survivors, disability, and health insurance benefits........... 11.9 -1.5 10.8 5.2 10.4 .1 4.5 2.5 Government unemployment insurance benefits............................ 1.1 1.3 .9 .5 5.6 14.8 5.1 .9 Other................................ 1.6 16.4 176.1 -25.1 -143.0 .4 3.0 15.7 Other current transfer receipts, from business (net)........................ .1 .0 .0 .0 .1 .1 26.9 -26.8 Less: Contributions for government social insurance............................... 3.8 -.8 .9 .9 1.4 2.1 -1.1 .3 Less: Personal current taxes............... 6.1 -12.7 -379.6 215.1 11.6 150.2 -3.6 -2.6 Equals: Disposable personal income......... 40.5 16.8 596.3 -201.3 -111.4 -119.7 11.6 45.1 Less: Personal outlays..................... 51.1 37.9 70.1 51.6 -7.9 -13.5 -34.2 -105.1 Personal consumption expenditures........ 57.0 33.8 70.7 52.2 -6.9 -13.1 -33.7 -102.8 Durable goods.......................... -10.1 -2.1 2.3 -16.4 -32.3 17.0 -39.2 -40.2 Nondurable goods....................... 35.1 20.2 35.0 37.6 5.4 -26.4 -12.8 -77.0 Services............................... 32.0 15.7 33.4 30.9 20.1 -3.7 18.2 14.5 Personal interest payments\1\............ -6.1 -.9 -.9 -.9 -.9 -.9 -.8 -2.7 Personal current transfer payments....... .2 5.1 .3 .3 -.2 .4 .4 .5 To government.......................... .2 .3 .3 .3 .4 .4 .5 .5 To the rest of the world (net)......... .0 4.8 .0 .0 -.6 .0 .0 .0 Equals: Personal saving.................... -10.5 -21.1 526.1 -252.8 -103.4 -106.3 45.8 150.1 Addendum: Real disposable personal income, billions of chained (2000) dollars\2\............ 6.9 -6.5 451.8 -233.6 -141.3 -97.4 .8 85.9 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the second 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 II 07 III 07 IV 07 I 08 II 08\r\ III 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 724.1 669.3 104.5 152.9 141.7 88.4 191.7 4.6 Compensation of employees, received...... 406.8 386.0 26.1 79.2 101.7 68.7 23.8 49.2 Wage and salary disbursements.......... 355.5 334.8 16.7 67.0 87.8 52.5 13.3 41.0 Private industries................... 313.3 282.5 8.5 54.5 76.4 34.9 -.4 26.3 Goods-producing industries......... 68.0 38.2 2.3 3.6 13.9 -.5 -5.0 5.9 Manufacturing.................... 27.2 14.8 -2.4 -.6 6.8 -1.8 -3.4 -.9 Services-producing industries...... 245.4 244.2 6.3 50.7 62.7 35.2 4.7 20.4 Trade, transportation, and utilities....................... 48.5 48.5 15.7 -1.2 13.0 2.1 -2.0 -.2 Other services-producing industries...................... 196.9 195.7 -9.4 52.0 49.5 33.3 6.5 20.7 Government........................... 42.3 52.2 8.2 12.7 11.3 17.6 13.7 14.6 Supplements to wages and salaries...... 51.2 51.3 9.4 12.2 13.9 16.2 10.5 8.2 Employer contributions for employee pension and insurance funds......... 30.8 35.1 10.1 8.8 9.4 9.4 9.1 6.8 Employer contributions for government social insurance.................... 20.4 16.2 -.6 3.4 4.5 6.8 1.4 1.4 Proprietors' income with inventory valuation and capital consumption adjustments............................. 54.9 41.5 13.0 13.6 10.0 -2.1 5.2 3.7 Farm................................... -17.9 27.8 3.0 5.1 -.3 -5.5 -3.6 -5.6 Nonfarm................................ 72.9 13.6 10.0 8.5 10.3 3.4 8.9 9.2 Rental income of persons with capital consumption adjustment.................. 3.4 -4.3 9.5 -2.8 -3.2 .5 19.5 4.5 Personal income receipts on assets....... 227.9 175.3 51.6 48.4 25.3 -2.1 -1.8 4.5 Personal interest income............... 103.4 88.9 33.9 30.1 6.5 -18.1 -15.9 9.8 Personal dividend income............... 124.5 86.4 17.8 18.2 18.8 16.0 14.1 -5.3 Personal current transfer receipts....... 82.3 110.3 3.5 21.4 17.2 40.3 148.2 -53.9 Government social benefits to persons.. 96.2 103.3 2.2 20.5 16.7 41.1 148.1 -63.0 Old-age, survivors, disability, and health insurance benefits........... 94.4 60.5 15.6 11.3 .8 22.8 17.6 18.9 Government unemployment insurance benefits............................ -1.4 2.4 -.1 1.3 1.8 3.9 3.2 17.8 Other................................ 3.2 40.3 -13.3 7.9 14.2 14.4 127.2 -99.7 Other current transfer receipts, from business (net)........................ -13.9 7.0 1.3 .8 .6 -.9 .2 9.1 Less: Contributions for government social insurance............................... 51.2 39.6 -.7 6.9 9.3 16.9 3.2 3.3 Less: Personal current taxes............... 145.4 139.6 29.9 12.2 18.9 14.5 -188.9 127.4 Equals: Disposable personal income......... 578.7 529.8 74.5 140.8 122.7 74.0 380.5 -122.7 Less: Personal outlays..................... 540.5 543.1 152.7 125.1 127.2 95.7 133.3 29.4 Personal consumption expenditures........ 513.1 503.0 132.6 108.1 127.1 109.6 135.7 31.5 Durable goods.......................... 31.3 30.7 8.7 .9 -3.2 -12.0 -11.7 -44.2 Nondurable goods....................... 171.1 147.8 56.2 28.9 59.6 44.5 75.5 20.3 Services............................... 310.7 324.5 67.6 78.4 70.7 77.1 71.9 55.4 Personal interest payments\1\............ 20.4 30.0 18.6 15.6 -1.5 -15.0 -7.9 -2.7 Personal current transfer payments....... 7.0 10.1 1.6 1.2 1.7 1.0 5.6 .5 To government.......................... 3.7 5.0 1.2 1.0 .7 .4 .8 1.1 To the rest of the world (net)......... 3.2 5.2 .3 .3 1.0 .6 4.8 -.6 Equals: Personal saving.................... 38.2 -13.3 -78.2 15.7 -4.4 -21.8 247.3 -152.2 Addendum: Real disposable personal income, billions of chained (2000) dollars\2\............ 285.6 237.0 -13.2 66.6 12.0 -15.2 223.1 -211.5 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the second 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] ----------------------------------------------------------------------------------------------------------------------------------- Mar 08 Apr 08\r\ May 08\r\ Jun 08\r\ Jul 08\r\ Aug 08\r\ Sep 08\r\ Oct 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Based on current-dollar measures ---------------------------------------------------------------------------------------- Personal income............................ .4 .0 1.8 .1 -.8 .3 .1 .3 Compensation of employees, received...... .4 -.3 .2 .2 .2 .3 .0 .1 Wage and salary disbursements.......... .5 -.4 .2 .2 .2 .3 -.1 .1 Supplements to wages and salaries...... .1 .4 .2 .2 .2 .2 .0 .2 Proprietors' income with inventory valuation and capital consumption adjustments............................. .2 .0 .5 .7 .6 -1.0 -.6 .2 Rental income of persons with capital consumption adjustment.................. 4.6 21.0 18.9 17.0 2.6 2.6 -34.2 64.7 Personal income receipts on assets....... -.1 .0 .0 .0 .1 .1 .1 .4 Personal interest income............... -.6 -.3 -.3 -.4 .6 .6 .6 .2 Personal dividend income............... .6 .5 .6 .6 -.6 -.6 -.6 .5 Personal current transfer receipts....... .8 .9 10.4 -1.0 -6.4 .8 2.1 -.4 Less: Contributions for government social insurance............................... .4 -.1 .1 .1 .1 .2 -.1 .0 Less: Personal current taxes............... .4 -.8 -24.9 18.7 .9 10.9 -.2 -.2 Equals: Disposable personal income......... .4 .2 5.7 -1.8 -1.0 -1.1 .1 .4 Addenda: Personal consumption expenditures........ .6 .3 .7 .5 -.1 -.1 -.3 -1.0 Durable goods.......................... -.9 -.2 .2 -1.5 -3.1 1.7 -3.8 -4.0 Nondurable goods....................... 1.2 .7 1.2 1.2 .2 -.9 -.4 -2.5 Services............................... .5 .3 .6 .5 .3 -.1 .3 .2 ---------------------------------------------------------------------------------------- Based on chained (2000) dollar measures ---------------------------------------------------------------------------------------- Real disposable personal income.......... .1 -.1 5.2 -2.6 -1.6 -1.1 .0 1.0 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the second 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 II 07 III 07 IV 07 I 08 II 08\r\ III 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Based on current-dollar measures ---------------------------------------------------------------------------------------- Personal income............................ 7.1 6.1 3.7 5.4 4.9 3.0 6.6 .2 Compensation of employees, received...... 5.8 5.2 1.4 4.1 5.3 3.5 1.2 2.5 Wage and salary disbursements.......... 6.3 5.6 1.1 4.3 5.6 3.3 .8 2.5 Supplements to wages and salaries...... 3.8 3.7 2.7 3.4 3.9 4.5 2.8 2.2 Proprietors' income with inventory valuation and capital consumption adjustments............................. 5.7 4.1 5.1 5.3 3.8 -.8 2.0 1.4 Rental income of persons with capital consumption adjustment.................. 8.3 -9.6 161.0 -22.7 -27.3 5.3 401.3 34.7 Personal income receipts on assets....... 14.3 9.6 11.1 10.1 5.1 -.4 -.3 .9 Personal interest income............... 10.1 7.9 12.1 10.4 2.1 -5.7 -5.1 3.3 Personal dividend income............... 21.7 12.4 9.7 9.8 9.8 8.1 7.0 -2.5 Personal current transfer receipts....... 5.4 6.9 .8 5.1 4.1 9.6 37.8 -10.7 Less: Contributions for government social insurance............................... 5.9 4.3 -.3 2.9 3.9 7.1 1.3 1.3 Less: Personal current taxes............... 12.0 10.3 8.5 3.3 5.1 3.9 -40.8 43.6 Equals: Disposable personal income......... 6.4 5.5 3.0 5.7 4.9 2.9 15.4 -4.5 Addenda: Personal consumption expenditures........ 5.9 5.5 5.7 4.6 5.3 4.5 5.5 1.2 Durable goods.......................... 3.1 2.9 3.3 .3 -1.2 -4.3 -4.3 -15.7 Nondurable goods....................... 6.8 5.5 8.4 4.2 8.7 6.3 10.6 2.7 Services............................... 6.0 5.9 4.8 5.6 4.9 5.3 4.9 3.7 ---------------------------------------------------------------------------------------- Based on chained (2000) dollar measures ---------------------------------------------------------------------------------------- Real disposable personal income.......... 3.5 2.8 -.6 3.1 .6 -.7 10.7 -9.2 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the second quarter of 2008. Table 7.--Real Personal Consumption Expenditures by Major Type of Product (Months) ----------------------------------------------------------------------------------------------------------------------------------- Mar 08 Apr 08 May 08 Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\r\ Oct 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Billions of chained (2000) dollars, seasonally adjusted at annual rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 8,326.2 8,334.6 8,355.1 8,334.4 8,281.1 8,270.5 8,234.8 8,197.6 Durable goods............................ 1,229.5 1,230.8 1,237.1 1,217.0 1,178.6 1,200.6 1,157.1 1,113.3 Nondurable goods......................... 2,410.1 2,419.0 2,427.3 2,415.9 2,392.0 2,378.1 2,363.3 2,348.1 Services................................. 4,707.3 4,705.7 4,712.8 4,717.9 4,716.3 4,705.4 4,715.0 4,723.6 ---------------------------------------------------------------------------------------- Change from preceding period in billions of chained (2000) dollars, seasonally adjusted at annual rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 21.6 8.4 20.5 -20.7 -53.3 -10.6 -35.7 -37.2 Durable goods............................ -12.3 1.3 6.3 -20.1 -38.4 22.0 -43.5 -43.8 Nondurable goods......................... 21.8 8.9 8.3 -11.4 -23.9 -13.9 -14.8 -15.2 Services................................. 7.7 -1.6 7.1 5.1 -1.6 -10.9 9.6 8.6 ---------------------------------------------------------------------------------------- Percent change from preceding period in chained (2000) dollars, seasonally adjusted at monthly rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... .3 .1 .2 -.2 -.6 -.1 -.4 -.5 Durable goods............................ -1.0 .1 .5 -1.6 -3.1 1.9 -3.6 -3.8 Nondurable goods......................... .9 .4 .3 -.5 -1.0 -.6 -.6 -.6 Services................................. .2 .0 .2 .1 .0 -.2 .2 .2 ----------------------------------------------------------------------------------------------------------------------------------- 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 II 07 III 07 IV 07 I 08 II 08 III 08\r\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Billions of chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 8,029.0 8,252.8 8,237.3 8,278.5 8,298.2 8,316.1 8,341.3 8,262.1 Durable goods............................ 1,185.1 1,242.4 1,242.3 1,249.4 1,250.6 1,237.0 1,228.3 1,178.8 Nondurable goods......................... 2,335.3 2,392.6 2,391.5 2,398.6 2,400.2 2,397.9 2,420.7 2,377.8 Services................................. 4,529.9 4,646.2 4,632.7 4,659.8 4,676.1 4,704.3 4,712.1 4,712.2 ---------------------------------------------------------------------------------------- Change from preceding period in billions of chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 237.3 223.8 40.1 41.2 19.7 17.9 25.2 -79.2 Durable goods............................ 50.7 57.3 15.0 7.1 1.2 -13.6 -8.7 -49.5 Nondurable goods......................... 82.6 57.3 11.4 7.1 1.6 -2.3 22.8 -42.9 Services................................. 109.0 116.3 16.6 27.1 16.3 28.2 7.8 .1 ---------------------------------------------------------------------------------------- Percent change from preceding period in chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 3.0 2.8 2.0 2.0 1.0 .9 1.2 -3.7 Durable goods............................ 4.5 4.8 5.0 2.3 .4 -4.3 -2.8 -15.2 Nondurable goods......................... 3.7 2.5 1.9 1.2 .3 -.4 3.9 -6.9 Services................................. 2.5 2.6 1.4 2.4 1.4 2.4 .7 .0 ----------------------------------------------------------------------------------------------------------------------------------- r Revised Table 9.--Price Indexes for Personal Consumption Expenditures: Level and Percent Change From Preceding Period (Months) ----------------------------------------------------------------------------------------------------------------------------------- Mar 08 Apr 08 May 08 Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\r\ Oct 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Chain-type price indexes (2000=100), seasonally adjusted ---------------------------------------------------------------------------------------- Personal consumption expenditures (PCE).... 120.585 120.869 121.419 122.346 123.050 123.050 123.173 122.479 Durable goods............................ 86.636 86.382 86.123 86.205 86.264 86.110 85.957 85.727 Nondurable goods......................... 123.245 123.625 124.646 126.793 128.285 127.923 128.186 125.733 Services................................. 127.557 127.934 128.451 128.967 129.435 129.657 129.779 129.849 Addenda: PCE excluding food and energy............ 116.357 116.532 116.742 117.072 117.323 117.549 117.748 117.735 Market-based PCE\1\...................... 118.701 119.003 119.578 120.574 121.374 121.323 121.438 120.648 Market-based PCE excluding food and energy\1\........................... 113.134 113.309 113.482 113.775 114.053 114.266 114.470 114.481 ---------------------------------------------------------------------------------------- Percent change from preceding period in price indexes, seasonally adjusted at monthly rates ---------------------------------------------------------------------------------------- PCE........................................ .3 .2 .5 .8 .6 .0 .1 -.6 Durable goods............................ .0 -.3 -.3 .1 .1 -.2 -.2 -.3 Nondurable goods......................... .3 .3 .8 1.7 1.2 -.3 .2 -1.9 Services................................. .4 .3 .4 .4 .4 .2 .1 .1 Addenda: PCE excluding food and energy............ .2 .2 .2 .3 .2 .2 .2 .0 Market-based PCE\1\...................... .3 .3 .5 .8 .7 .0 .1 -.7 Market-based PCE excluding food and energy\1\........................... .1 .2 .2 .3 .2 .2 .2 .0 ----------------------------------------------------------------------------------------------------------------------------------- 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 ----------------------------------------------------------------------------------------------------------------------------------- Mar 08 Apr 08\r\ May 08\r\ Jun 08\r\ Jul 08\r\ Aug 08\r\ Sep 08\r\ Oct 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Disposable personal income................. .4 .7 6.1 3.2 1.1 -.4 -.5 .5 Personal consumption expenditures.......... 1.5 1.3 1.4 1.1 .2 -.2 -.6 -.9 Durable goods............................ -.3 -.1 -1.7 -1.6 -4.4 -4.4 -8.2 -11.4 Nondurable goods......................... .9 1.5 1.4 .7 -.6 -.5 -1.5 -2.0 Services................................. 2.2 1.5 2.0 1.7 1.4 .7 1.2 1.5 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the second quarter of 2008. Table 11.--Price Indexes for Personal Consumption Expenditures: Percent Change From Month One Year Ago ----------------------------------------------------------------------------------------------------------------------------------- Mar 08 Apr 08 May 08 Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\r\ Oct 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal consumption expenditures (PCE).... 3.4 3.4 3.5 4.1 4.5 4.4 4.1 3.2 Durable goods............................ -1.2 -1.2 -1.3 -1.3 -1.1 -.9 -.9 -1.2 Nondurable goods......................... 5.6 5.5 5.6 7.2 8.2 8.0 7.7 5.2 Services................................. 3.3 3.3 3.4 3.5 3.7 3.6 3.3 3.1 Addenda: PCE excluding food and energy............ 2.2 2.2 2.2 2.3 2.4 2.4 2.3 2.1 Market-based PCE\1\...................... 3.3 3.3 3.5 4.1 4.7 4.6 4.3 3.4 Market-based PCE excluding food and energy\1\........................... 1.7 1.8 1.9 2.0 2.1 2.2 2.2 2.0 ----------------------------------------------------------------------------------------------------------------------------------- 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.