FOR WIRE TRANSMISSION: 8:30 A.M. EST, MONDAY, FEBRUARY 3, 1997 Tracey D. Schlitzer: (202) 606-5301 (Personal Income) BEA 97-03 Clinton P. McCully: 606-5302 (Personal Outlays) Recorded message: 606-5303 PERSONAL INCOME AND OUTLAYS: DECEMBER 1996 Personal income increased $55.3 billion, or 0.8 percent, and disposable personal income (DPI) increased $45.8 billion, or 0.8 percent, in December, according to the Commerce Department's Bureau of Economic Analysis (BEA). Personal consumption expenditures (PCE) increased $24.3 billion, or 0.5 percent. In November, personal income increased $39.9 billion, or 0.6 percent, DPI increased $34.2 billion, or 0.6 percent, and PCE increased $21.2 billion, or 0.4 percent, based on revised estimates. 1996 Aug. Sept. Oct. Nov. Dec. (Percent change from preceding month) Personal income, current dollars . . . 0.6 0.6 0.1 0.6 0.8 Disposable personal income: Current dollars. . . . . . . . . . . .5 .5 .1 .6 .8 Chained (1992) dollars . . . . . . . .5 .3 -.2 .4 .6 Personal consumption expenditures: Current dollars. . . . . . . . . . . .5 .1 .9 .4 .5 Chained (1992) dollars . . . . . . . .4 -.1 .5 .2 .3 Wages and salaries Private wage and salary disbursements increased $45.5 billion in December, compared with an increase of $27.4 billion in November. In December, employment, average weekly hours, and average hourly earnings all increased. Commodity-producing industries' payrolls increased $13.1 billion, compared with an increase of $4.2 billion; manufacturing payrolls increased $10.6 billion, compared with an increase of $2.9 billion. Distributive industries' payrolls increased $6.4 billion, compared with an increase of $10.0 billion. Service industries' payrolls increased $26.0 billion, compared with an increase of $13.2 billion. Government wage and salary disbursements were unchanged, in contrast to an increase of $0.3 billion. Other personal income Proprietors' income increased $1.1 billion in December, the same increase as in November. Farm proprietors' income decreased $1.7 billion, compared with a decrease of $2.0 billion. Nonfarm proprietors' income increased $2.9 billion, compared with an increase of $3.0 billion. Transfer payments increased $5.0 billion in December, compared with an increase of $7.0 billion in November. The December increase reflected retroactive social security benefit payments of $3.4 billion at an annual rate. These payments result from a recalculation of the earnings base underlying the benefits for recent retirees. Personal interest income increased $2.7 billion, compared with an increase of $2.5 billion. Personal taxes and disposable personal income Personal tax and nontax payments increased $9.6 billion in December, compared with an increase of $5.6 billion in November. Disposable personal income (DPI) -- personal income less personal tax and nontax payments -- increased $45.8 billion, or 0.8 percent, in December, compared with an increase of $34.2 billion, or 0.6 percent, in November. Personal outlays and personal saving Personal outlays -- personal consumption expenditures (PCE), interest paid by persons, and personal transfer payments to the rest of the world (net) -- increased $24.9 billion in December, compared with an increase of $22.6 billion in November. PCE increased $24.3 billion, compared with an increase of $21.2 billion. Personal saving -- disposable personal income less personal outlays -- was $310.0 billion in December, compared with $289.1 billion in November. Personal saving as a percentage of disposable personal income was 5.4 percent in December, compared with 5.1 percent in November. Chained (1992) dollar estimates Real DPI -- DPI adjusted to remove price changes -- increased 0.6 percent in December, compared with an increase of 0.4 percent in November. Real PCE -- PCE adjusted to remove price changes -- increased 0.3 percent in December, compared with an increase of 0.2 percent in November. Purchases of durable goods increased 1.0 percent, compared with an increase of 0.3 percent. Purchases of nondurable goods increased 0.3 percent in December, in contrast to a decrease of 0.3 percent in November. Purchases of services increased 0.1 percent, compared with an increase of 0.4 percent. Personal Income and outlays in 1996 Personal income increased 5.5 percent, or $337.7 billion, in 1996, compared with an increase of 6.3 percent, or $362.0 billion, in 1995 (see the table below and table 3). Disposable personal income increased 5.0 percent, compared with 6.0 percent. Personal outlays increased 4.8 percent, compared with 5.0 percent. Real disposable income increased 2.9 percent, compared with 3.5 percent. The saving rate was 4.9 percent in 1996 compared with 4.7 (see table 2). 1995 1996 (Percent change from preceding year) Personal Income 6.3 5.5 Wage and salary disbursements 5.8 5.8 Other labor income 5.4 2.9 Proprietors' income with inventory valuation and capital consumption adjustments 6.1 8.3 Farm -17.1 59.3 Nonfarm 8.0 5.0 Rental income of persons with capital consumption adjustment 4.9 4.1 Personal dividend income 7.6 7.3 Personal interest income 8.0 2.9 Transfer payments to persons 6.9 5.6 Old-age, survivors, disability, and health insurance benefits 7.3 6.3 Government unemployment insurance benefits -8.8 2.1 Other 7.4 5.1 Personal contributions for social insurance 5.9 4.4 Personal tax and nontax payments 8.6 8.8 Disposable personal income 6.0 5.0 Personal outlays 5.0 4.8 Addendum: Disposable personal income, chained (1992) dollars 3.5 2.9 Revisions Estimates have been revised for October and November. Changes in personal income, current-dollar and chained (1992) dollar DPI, and current- dollar and chained (1992) dollar PCE for October and November -- revised and as published in last month's release -- are shown below. Change from preceding month October November Previous Revised Previous Revised Previous Revised Previous Revised (Dollars) (Percent) (Dollars) (Percent) Personal income: Current dollars. . . . 2.9 5.0 0.0 0.1 32.5 39.9 0.5 0.6 Disposable personal income: Current dollars. . . . 3.8 5.3 .1 .1 28.5 34.2 .5 .6 Chained (1992) dollars -11.8 -11.8 -.2 -.2 13.8 20.0 .3 .4 Personal consumption expenditures: Current dollars. . . . 37.2 45.3 .7 .9 28.5 21.2 .5 .4 Chained (1992) dollars 19.7 25.8 .4 .5 14.8 9.2 .3 .2 * * * BEA estimates are available in several forms in addition to printed news releases. News releases are available at the time of public release through three subscription services offered by the Commerce Department's STAT-USA. Information on how to receive releases by FAX may be obtained by calling (202) 482-1986 (voice). Information about the Economic Bulletin Board (EBB) and about Internet services may be obtained at the same voice number and on-line, as follows: EBB (202) 482-3870 Internet http://www.stat-usa.gov In addition, BEA's most frequently requested statistical series are available on the Internet, as follows: The Federal Statistics Briefing Room (FSBR) on the White House web site provides summary statistics for GDP and other major aggregates on its output, income, and international statistics pages. http://www.whitehouse.gov/fsbr The FSBR provides links to BEA's web site, which provides summary tables and charts on BEA's national, international, and regional data. http://www.bea.gov BEA's web site provides links to detailed BEA databases on STAT-USA's Internet subscription service. http://www.stat-usa.gov Summary estimates are available on recorded messages at the time of public release at the following telephone numbers: (202) 606 - 5306 Gross domestic product 5303 Personal income and outlays 5362 Summary of international transactions Most of BEA's estimates and analyses appear in the Survey of Current Business, BEA's monthly journal. The Survey of Current Business is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. First class mail: annual subscription $90.00 domestic. Second class mail: annual subscription $49.00 domestic, $61.25 foreign; single issue $11.00 domestic, $13.75 foreign. In addition, the Survey of Current Business is now available on the Internet in a searchable, retrievable electronic format at least a week before the printed version. To subscribe to STAT-USA's World Wide Web system, go to http://www.stat-usa.gov. Subscriptions for single-user unlimited access to STAT-USA's Internet information are $50.00 for 3 months or $150.00 for 1 year. For further information, call (202) 482-1986. * * * Next release -- Personal Income and Outlays for January will be released on March 3, 1997, at 8:30 A.M. EST. Table 1. -- Personal Income [Billions of dollars] -------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ----------------------------------------------------------- 1995 1996 July 96 Aug. 96 Sep. 96 Oct. 96r Nov. 96r Dec. 96p -------------------------------------------------------------------------------------------------------------------------- Personal income..................... 6,115.1 6,452.8 6,463.1 6,502.5 6,538.7 6,543.7 6,583.6 6,638.9 Wage and salary disbursements..... 3,430.6 3,630.1 3,630.8 3,660.9 3,687.2 3,682.3 3,710.0 3,755.4 Private industries.............. 2,808.8 2,988.9 2,988.3 3,016.5 3,040.4 3,035.5 3,062.9 3,108.4 Commodity-producing industries 863.6 902.8 906.8 913.3 913.1 913.8 918.0 931.1 Manufacturing............... 648.4 672.6 675.4 680.7 679.5 679.7 682.6 693.2 Distributive industries....... 783.7 827.7 823.8 832.5 841.0 836.6 846.6 853.0 Service industries............ 1,161.6 1,258.5 1,257.8 1,270.7 1,286.3 1,285.1 1,298.3 1,324.3 Government...................... 621.7 641.1 642.5 644.4 646.8 646.8 647.1 647.1 Other labor income................ 424.0 436.2 437.1 438.6 440.1 441.5 442.9 444.3 Proprietors' income with IVA and CCAdj........................... 478.3 518.1 522.7 526.0 530.4 530.4 531.5 532.6 Farm............................ 29.0 46.2 50.0 52.2 53.1 50.9 48.9 47.2 Nonfarm......................... 449.3 471.9 472.7 473.7 477.3 479.5 482.5 485.4 Rental income of persons with CCAdj........................... 122.2 127.2 126.3 126.6 128.0 129.7 130.4 131.4 Personal dividend income.......... 214.8 230.6 230.8 231.5 232.3 233.3 234.7 236.5 Personal interest income.......... 717.1 738.0 740.6 743.0 745.1 747.3 749.8 752.5 Transfer payments to persons...... 1,022.6 1,080.1 1,082.5 1,085.6 1,087.3 1,090.5 1,097.5 1,102.5 Old-age, survivors, disability, and health insurance benefits. 507.4 539.2 540.2 542.3 542.8 544.5 549.0 552.5 Government unemployment insurance benefits............ 21.6 22.1 22.1 21.9 22.0 22.0 22.0 22.0 Other........................... 493.6 518.9 520.2 521.4 522.5 524.0 526.5 528.0 Less: Personal contributions for social insurance................ 294.5 307.6 307.7 309.8 311.7 311.4 313.3 316.4 -------------------------------------------------------------------------------------------------------------------------- p Preliminary. r Revised. IVA Inventory valuation adjustment CCAdj Capital consumption adjustment Source: U.S. Department of Commerce, Bureau of Economic Analysis. Table 2. -- The Disposition of Personal Income [Billions of dollars] -------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ------------------------------------------------------ 1995 1996 July 96 Aug. 96 Sep. 96 Oct. 96r Nov. 96r Dec. 96p -------------------------------------------------------------------------------------------------------------------------- Personal income....................... 6,115.1 6,452.8 6,463.1 6,502.5 6,538.7 6,543.7 6,583.6 6,638.9 Less: Personal tax and nontax payments........................... 794.3 863.8 863.9 873.3 880.4 880.2 885.8 895.4 Equals: Disposable personal income... 5,320.8 5,589.0 5,599.2 5,629.2 5,658.3 5,663.6 5,697.8 5,743.6 Less: Personal outlays............... 5,071.5 5,314.5 5,313.0 5,336.7 5,339.8 5,386.1 5,408.7 5,433.6 Personal consumption expenditures... 4,924.9 5,152.0 5,148.9 5,172.4 5,175.1 5,220.4 5,241.6 5,265.9 Interest paid by persons............ 131.7 146.3 147.9 148.2 148.6 149.1 150.4 151.1 Personal transfer payments to the rest of the world (net)........... 14.9 16.2 16.2 16.2 16.2 16.6 16.6 16.6 Equals: Personal saving.............. 249.3 274.4 286.2 292.5 318.5 277.5 289.1 310.0 Addenda: Disposable personal income: Chained (1992) dollars 1/........... 4,945.8 5,088.4 5,092.2 5,117.5 5,134.0 5,122.2 5,142.2 5,175.6 Per capita: Current dollars................... 20,224 21,052 21,082 21,178 21,270 21,274 21,387 21,544 Chained (1992) dollars............ 18,799 19,166 19,173 19,253 19,299 19,240 19,302 19,413 Population (thousands).............. 263,090 265,484 265,590 265,807 266,022 266,226 266,412 266,597 Personal saving as a percentage of disposable personal income ......... 4.7 4.9 5.1 5.2 5.6 4.9 5.1 5.4 -------------------------------------------------------------------------------------------------------------------------- p Preliminary. r Revised. 1/ Disposable personal income in chained (1992) dollars equals the current-dollar figure divided by the implicit price deflator for personal consumption expenditures. Source: U.S. Department of Commerce, Bureau of Economic Analysis. Table 3. -- Personal Income and Its Disposition, Change From Preceding Period [Billions of dollars] -------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ------------------------------------------------------ 1995 1996 July 96 Aug. 96 Sep. 96 Oct. 96r Nov. 96r Dec. 96p -------------------------------------------------------------------------------------------------------------------- Personal income....................... 362.0 337.7 2.8 39.4 36.2 5.0 39.9 55.3 Wage and salary disbursements........ 188.8 199.5 -12.3 30.1 26.3 -4.9 27.7 45.4 Private industries................ 169.5 180.1 -14.5 28.2 23.9 -4.9 27.4 45.5 Commodity-producing industries.. 38.7 39.2 0.5 6.5 -0.2 0.7 4.2 13.1 Manufacturing................. 27.3 24.2 0.3 5.3 -1.2 0.2 2.9 10.6 Distributive industries......... 44.5 44.0 -9.8 8.7 8.5 -4.4 10.0 6.4 Service industries.............. 86.4 96.9 -5.1 12.9 15.6 -1.2 13.2 26.0 Government........................ 19.2 19.4 2.2 1.9 2.4 0.0 0.3 0.0 Other labor income.................. 21.8 12.2 1.5 1.5 1.5 1.4 1.4 1.4 Proprietors' income with IVA and CCAdj............................. 27.4 39.8 3.7 3.3 4.4 0.0 1.1 1.1 Farm.............................. -6.0 17.2 2.0 2.2 0.9 -2.2 -2.0 -1.7 Nonfarm........................... 33.4 22.6 1.7 1.0 3.6 2.2 3.0 2.9 Rental income of persons with CCAdj............................. 5.6 5.0 1.7 0.3 1.4 1.7 0.7 1.0 Personal dividend income............ 15.2 15.8 0.9 0.7 0.8 1.0 1.4 1.8 Personal interest income............ 53.4 20.9 3.1 2.4 2.1 2.2 2.5 2.7 Transfer payments to persons........ 66.3 57.5 3.6 3.1 1.7 3.2 7.0 5.0 Old-age, survivors, disability, and health insurance benefits... 34.5 31.8 1.9 2.1 0.5 1.7 4.5 3.5 Government unemployment insurance benefits.............. -2.1 0.5 0.2 -0.2 0.1 0.0 0.0 0.0 Other............................. 33.9 25.3 1.5 1.2 1.1 1.5 2.5 1.5 Less: Personal contributions for social insurance.................. 16.4 13.1 -0.7 2.1 1.9 -0.3 1.9 3.1 Less: Personal tax and nontax payments............................ 62.9 69.5 0.9 9.4 7.1 -0.2 5.6 9.6 Equals: Disposable personal income.... 299.1 268.2 1.9 30.0 29.1 5.3 34.2 45.8 Less: Personal outlays................ 239.2 243.0 15.1 23.7 3.1 46.3 22.6 24.9 Personal consumption expenditures... 224.0 227.1 13.3 23.5 2.7 45.3 21.2 24.3 Interest paid by persons............ 14.5 14.6 1.7 0.3 0.4 0.5 1.3 0.7 Personal transfer payments to the rest of the world (net)........... 0.7 1.3 0.0 0.0 0.0 0.4 0.0 0.0 Equals: Personal saving............... 59.9 25.1 -13.2 6.3 26.0 -41.0 11.6 20.9 Addenda: Disposable personal income, chained (1992) dollars.......... 167.6 142.6 -8.3 25.3 16.5 -11.8 20.0 33.4 -------------------------------------------------------------------------------------------------------------------- ----------------------------------------- p Preliminary. r Revised. IVA Inventory valuation adjustment CCAdj Capital consumption adjustment Source: U.S. Department of Commerce, Bureau of Economic Analysis. Table 4. -- Personal Consumption Expenditures by Major Type of Product ------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates --------------------------------------------------------- 1995 1996 July 96 Aug. 96 Sep. 96 Oct. 96r Nov. 96r Dec. 96p ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,924.9 5,152.0 5,148.9 5,172.4 5,175.1 5,220.4 5,241.6 5,265.9 Durable goods....................... 606.4 632.2 624.7 642.8 624.0 634.1 634.4 638.1 Nondurable goods.................... 1,485.9 1,545.1 1,544.2 1,542.7 1,552.6 1,562.9 1,564.4 1,574.2 Services............................ 2,832.6 2,974.7 2,980.0 2,986.9 2,998.5 3,023.3 3,042.9 3,053.6 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,577.8 4,690.6 4,682.7 4,702.2 4,695.5 4,721.3 4,730.5 4,745.1 Durable goods....................... 579.8 611.5 605.3 623.3 606.3 616.2 618.2 624.6 Nondurable goods.................... 1,421.9 1,441.8 1,438.5 1,441.9 1,446.3 1,449.3 1,445.2 1,450.0 Services............................ 2,577.0 2,638.2 2,639.6 2,638.3 2,643.9 2,656.7 2,667.8 2,671.3 -------------------------------------------------------------------------------- Implicit price deflators (Index numbers, 1992 = 100) -------------------------------------------------------------------------------- Personal consumption expenditures..... 107.6 109.8 110.0 110.0 110.2 110.6 110.8 111.0 Durable goods....................... 104.6 103.4 103.2 103.1 102.9 102.9 102.6 102.2 Nondurable goods.................... 104.5 107.2 107.3 107.0 107.4 107.8 108.2 108.6 Services............................ 109.9 112.8 112.9 113.2 113.4 113.8 114.1 114.3 ------------------------------------------------------------------------------------------------------------------------- Change from preceding period ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 224.0 227.1 13.3 23.5 2.7 45.3 21.2 24.3 Durable goods....................... 25.5 25.8 -7.3 18.1 -18.8 10.1 0.3 3.7 Nondurable goods.................... 56.2 59.2 3.7 -1.5 9.9 10.3 1.5 9.8 Services............................ 142.3 142.1 17.0 6.9 11.6 24.8 19.6 10.7 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 104.7 112.8 3.0 19.5 -6.7 25.8 9.2 14.6 Durable goods....................... 17.8 31.7 -6.6 18.0 -17.0 9.9 2.0 6.4 Nondurable goods.................... 31.4 19.9 1.9 3.4 4.4 3.0 -4.1 4.8 Services............................ 55.6 61.2 7.4 -1.3 5.6 12.8 11.1 3.5 __________________________________________________________________________________________________________________________ Table 5. -- Percent Change From Preceding Period in Selected Series -------------------------------------------------------------------------------------------------------------------------- 1995 1996 July 96 Aug. 96 Sep. 96 Oct. 96r Nov. 96r Dec. 96p -------------------------------------------------------------------------------------------------------------------------- Based on current dollars --------------------------------------------------------------------------------- Personal income....................... 6.3 5.5 0.0 0.6 0.6 0.1 0.6 0.8 Disposable personal income............ 6.0 5.0 0.0 0.5 0.5 0.1 0.6 0.8 Personal consumption expenditures..... 4.8 4.6 0.3 0.5 0.1 0.9 0.4 0.5 Durable goods....................... 4.4 4.3 -1.2 2.9 -2.9 1.6 0.0 0.6 Nondurable goods.................... 3.9 4.0 0.2 -0.1 0.6 0.7 0.1 0.6 Services............................ 5.3 5.0 0.6 0.2 0.4 0.8 0.6 0.4 --------------------------------------------------------------------------------- Based on chained (1992) dollars --------------------------------------------------------------------------------- Disposable personal income............ 3.5 2.9 -0.2 0.5 0.3 -0.2 0.4 0.6 Personal consumption expenditures..... 2.3 2.5 0.1 0.4 -0.1 0.5 0.2 0.3 Durable goods....................... 3.2 5.5 -1.1 3.0 -2.7 1.6 0.3 1.0 Nondurable goods.................... 2.3 1.4 0.1 0.2 0.3 0.2 -0.3 0.3 Services............................ 2.2 2.4 0.3 0.0 0.2 0.5 0.4 0.1 -------------------------------------------------------------------------------------------------------------------------- ---------------------------------------- p Preliminary. r Revised. Source: U.S. Department of Commerce, Bureau of Economic Analysis.