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News Release: Personal Income and Outlays

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EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, WEDNESDAY, MARCH 1, 2006

James E. Rankin:       (202) 606-5301      (Personal Income)BEA 06-06
Michael Armah:         (202) 606-5302      (Personal Outlays)



             PERSONAL INCOME AND OUTLAYS:  JANUARY 2006

 Personal income increased $75.2 billion, or 0.7 percent, and disposable personal income
(DPI) increased $50.2 billion, or 0.5 percent, in January, according to the Bureau of Economic
Analysis.  Personal consumption expenditures (PCE) increased $76.7 billion, or 0.9 percent.  In
December, personal income increased $54.8 billion, or 0.5 percent, DPI increased $47.6 billion,
or 0.5 percent, and PCE increased $64.2 billion, or 0.7 percent, based on revised estimates.

                                                     2005                 2006
                                       Sept.    Oct.     Nov.     Dec.     Jan.
                                        (Percent change from preceding month)
Personal income, current dollars         3.1     0.6      0.3      0.5      0.7
Disposable personal income:
Current dollars                          3.4     0.5      0.3      0.5      0.5
Chained (2000) dollars                   2.5     0.4      0.7      0.5      0.1
Personal consumption expenditures:
Current dollars                          0.4     0.2      0.5      0.7      0.9
Chained (2000) dollars                  -0.5     0.1      0.9      0.7      0.4







       This news release presents revised estimates of wages and salaries, personal taxes, and contributions
for government social insurance for July through September 2005 (third quarter).  These estimates reflect
newly available third-quarter wage and salary tabulations from the quarterly census of employment and
wages from the Bureau of Labor Statistics.





 The January change in personal income was boosted by several special factors.  New
Medicare Prescription Drug Plan (Medicare Plan D) payments and cost-of-living adjustments to
several federal transfer payment programs boosted current personal transfer receipts; pay raises
for federal civilian and military personnel boosted government wage and salary disbursements.
The January change was reduced by annual adjustments to personal contributions for government
social insurance and by lump-sum social security benefit payments that had boosted December
personal income.  Excluding these special factors, personal income increased $37.6 billion, or 0.4
percent, in January, after increasing $48.3 billion, or 0.5 percent, in December.  These special
factors are discussed more fully below.

                                Compensation of employees

 Private wage and salary disbursements increased $34.2 billion in January, compared with an
increase of $24.2 billion in December.  Goods-producing industries' payrolls increased $5.2
billion, compared with an increase of $3.7 billion; manufacturing payrolls increased $1.3 billion,
compared with an increase of $0.9 billion.  Services-producing industries' payrolls increased
$29.0 billion, compared with an increase of $20.5 billion.

 Government wage and salary disbursements increased $6.6 billion in January, compared with
an increase of $1.5 billion in December.  Pay raises for civilian and military personnel added $5.4
billion to government payrolls in January.

 Employer contributions for employee pension and insurance funds increased $9.6 billion in
January, compared with an increase of $3.4 billion in December.

 Employer contributions for government social insurance increased $7.0 billion in January,
compared with an increase of $1.4 billion in December.  The January increase reflected an
increase in the tax rate paid by employers to state unemployment insurance funds and an increase
in the social security taxable wage base (from $90,000 to $94,200); together, these changes added
$4.2 billion in January.  (Changes in employer contributions for government social insurance do
not affect personal income, because employer contributions for government social insurance are
also included in total contributions for government social insurance, which is a subtraction in the
calculation of personal income.)


                        Other personal income

 Proprietors' income increased $2.7 billion in January, compared with an increase of $5.1
billion in December.  Farm proprietors' income decreased $3.2 billion, in contrast to an increase
of $2.0 billion.  Nonfarm proprietors' income increased $5.9 billion, compared with an increase
of $3.1 billion.

 Rental income of persons decreased $2.7 billion in January, compared with a decrease of
$3.0 billion in December.  Personal income receipts on assets (personal interest income plus
personal dividend income) increased $7.6 billion, compared with an increase of $16.7 billion.









 Personal current transfer receipts increased $27.9 billion in January, compared with an
increase of $8.7 billion in December.  The January change in current transfer receipts reflected
payments for the new Medicare Prescription Drug Plan (Medicare Part D) and 4.1-percent cost-
of-living adjustments to social security benefits and to several other federal transfer payment
programs; together, these changes added $49.7 billion to the January increase.  The January change
in current transfer receipts was reduced by lump-sum social security benefits payments, which had
added $6.5 billion to December benefit payments; these benefit payments resulted from a
recalculation of the earnings base underlying the benefits for recent retirees.

 Contributions for government social insurance -- a subtraction in calculating personal income
-- increased $17.6 billion in January, compared with an increase of $3.0 billion in December.  The
January increase reflected increases in both employer and personal contributions for government
social insurance.  As noted above, employer contributions were boosted $4.2 billion in January by
increases in unemployment-insurance rates and in the social security taxable wage base.  The
January increase in personal contributions for government social insurance reflected an increase
in the monthly premium paid by participants in the supplementary medical insurance program
(Medicare B) and the increase in the social security taxable wage base; together, these changes
        added $6.8 billion to January personal contributions.


        Personal current taxes and disposable personal income

 Personal current taxes increased $25.0 billion in January, compared with an increase of $7.2
billion in December.  Indexation provisions of current tax law reduced federal withheld income
taxes by $4.1 billion in January.  Federal net nonwithheld income taxes (payments of estimated
taxes plus final settlements less refunds) boosted the January increase by $5.6 billion, based on
federal budget projections for 2006.

 Disposable personal income (DPI) -- personal income less personal current taxes --
increased $50.2 billion, or 0.5 percent, in January, compared with an increase of $47.6 billion, or
0.5 percent, in December.








                Personal outlays and personal saving

 Personal outlays -- PCE, personal interest payments, and personal current transfer payments
increased $77.9 billion in January, compared with an increase of $65.6 billion in December.  PCE
increased $76.7 billion, compared with an increase of $64.2 billion.

 Personal saving -- DPI less personal outlays -- was a negative $63.3 billion in January,
compared with a negative $35.7 billion in December.  Personal saving as a percentage of
disposable personal income was a negative 0.7 percent in January, compared with a negative 0.4
percent in December.  Negative personal saving reflects personal outlays that exceed disposable
personal income.  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.

                        Real DPI and real PCE

 Real DPI -- DPI adjusted to remove price changes -- increased 0.1 percent in January,
compared with an increase of 0.5 percent in December.  In January, the smaller increase in real
DPI than in current-dollar DPI reflected an increase in the PCE implicit price deflator, which is
used to deflate DPI.  The PCE price deflator increased 0.5 percent in January; following no change
in December; most of the January increase was accounted for by increases in food and energy
prices.

 Real PCE -- PCE adjusted to remove price changes -- increased 0.4 percent in January,
compared with an increase of 0.7 percent in December.  Purchases of durable goods increased 1.3
percent, compared with an increase of 4.1 percent.  Purchases of motor vehicles and parts
decelerated sharply in January.  Purchases of nondurable goods increased 1.3 percent, compared
with an increase of 0.4 percent.  Purchases of services decreased 0.3 percent, in contrast to an
increase of 0.3 percent.


                  2005 Personal Income and Outlays

 Personal income increased 5.5 percent in 2005 (that is, from the 2004 annual level to the
2005 annual level), compared with an increase of 5.9 percent in 2004.  DPI increased 4.3 percent,
compared with an increase of 6.1 percent.  PCE increased 6.5 percent, the same increase as in
2004.

 Real DPI increased 1.5 percent in 2005, compared with an increase of 3.4 percent in 2004.
Real PCE increased 3.6 percent, compared with an increase of 3.9 percent.





                              Revisions

 Estimates have been revised for July through December.  Changes in personal income,
current-dollar and chained (2000) dollar DPI, and current-dollar and chained (2000) dollar PCE
for November and December -- revised and as published in last month's release -- are shown
below.

 For July through December, the revisions to wages and salaries reflected the incorporation of
the most recently available BLS tabulations of third-quarter private wages and salaries from the
quarterly census of employment and wages.  Wages and salaries were revised up for all six months.
Revisions to personal current taxes and to contributions for government social insurance reflected
the revisions to wages and salaries.



                                                   Change from preceding month
                                         November                                December
                        Previous  Revised   Previous  Revised   Previous  Revised   Previous  Revised
                     (Billions of dollars)     (Percent)      (Billions of dollars)     (Percent)
Personal Income:
Current dollars........... 44.6      32.0        0.4      0.3       41.1     54.8        0.4      0.5
Disposable personal income:
Current dollars........... 39.0      28.4        0.4      0.3       35.5     47.6        0.4      0.5
Chained (2000) dollars.... 64.7      58.5        0.8      0.7       33.2     42.8        0.4      0.5
Personal consumption expenditures:
Current dollars........... 48.6      45.7        0.5      0.5       80.2     64.2        0.9      0.7
Chained (2000) dollars.... 72.2      72.8        0.9      0.9       72.9     57.4        0.9      0.7





         This release also includes revised estimates of population, per capita disposable personal income (DPI),
and per capita real DPI.  The revised population estimates reflect newly available estimates from the Census
Bureau for April 2000 through January 2006.  The revised per capita estimates reflect the revisions to the
population estimates.  Estimates for the complete revision period are available on BEA's Web site at
www.bea.gov/bea/dn/nipaweb/SelectTable.asp?Selected=Y#S2.









 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 -- Personal Income and Outlays for February will be released on
March 31, 2006, at 8:30 A.M. EST.



                                      Table 1.--Personal Income and Its Disposition (Months)
                                 [Billions of dollars; months seasonally adjusted at annual rates]
-----------------------------------------------------------------------------------------------------------------------------------
                                                Jun 05  Jul 05\r\  Aug 05\r\  Sep 05\r\  Oct 05\r\  Nov 05\r\  Dec 05\r\  Jan 06\p\
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................   10,231.5   10,283.9   10,078.3   10,389.1   10,448.1   10,480.1   10,534.9   10,610.1

  Compensation of employees, received......    7,086.1    7,150.4    7,170.1    7,212.4    7,250.1    7,258.0    7,288.4    7,345.7

    Wage and salary disbursements..........    5,695.7    5,744.2    5,755.1    5,787.7    5,817.5    5,822.2    5,847.8    5,888.6
      Private industries...................    4,727.4    4,772.6    4,780.5    4,808.8    4,837.3    4,839.3    4,863.5    4,897.7
        Goods-producing industries.........    1,111.8    1,123.8    1,131.6    1,134.5    1,145.6    1,144.4    1,148.1    1,153.3
          Manufacturing....................      717.5      721.8      725.9      726.3      735.6      730.6      731.5      732.8
        Services-producing industries......    3,615.6    3,648.9    3,648.9    3,674.3    3,691.7    3,694.9    3,715.4    3,744.4
          Trade, transportation, and
           utilities.......................      955.9      963.6      961.1      963.7      967.7      971.0      975.4      978.3
          Other services-producing
           industries......................    2,659.7    2,685.2    2,687.8    2,710.6    2,724.0    2,723.9    2,740.0    2,766.1
      Government...........................      968.4      971.6      974.6      978.9      980.2      982.8      984.3      990.9

    Supplements to wages and salaries......    1,390.4    1,406.2    1,415.0    1,424.7    1,432.6    1,435.8    1,440.6    1,457.1
      Employer contributions for employee
       pension and insurance funds.........      965.6      978.5      987.0      994.8    1,000.5    1,003.6    1,007.0    1,016.6
      Employer contributions for government
       social insurance....................      424.8      427.7      428.0      429.8      432.1      432.1      433.5      440.5

  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      945.7      947.3      891.4      958.4      961.4      968.3      973.4      976.1
    Farm...................................       15.8       19.0       17.4       17.7       19.1       21.0       23.0       19.8
    Nonfarm................................      929.9      928.2      874.1      940.7      942.3      947.3      950.4      956.3

  Rental income of persons with capital
   consumption adjustment..................       99.7       96.5     -213.4       83.6       80.2       84.5       81.5       78.8

  Personal income receipts on assets.......    1,452.8    1,460.9    1,468.8    1,476.9    1,493.6    1,510.3    1,527.0    1,534.6
    Personal interest income...............      944.9      948.1      951.2      954.4      965.9      977.5      989.0      992.3
    Personal dividend income...............      507.9      512.8      517.6      522.5      527.7      532.9      538.0      542.3

  Personal current transfer receipts.......    1,514.8    1,502.4    1,635.9    1,536.0    1,545.0    1,541.5    1,550.2    1,578.1
    Government social benefits to persons..    1,485.5    1,473.1    1,478.1    1,498.5    1,504.6    1,512.1    1,520.7    1,548.8
      Old-age, survivors, disability, and
       health insurance benefits...........      845.6      847.3      851.2      851.9      854.8      855.3      865.5      908.3
      Government unemployment insurance
       benefits............................       28.1       27.9       27.6       30.0       30.7       29.6       28.8       27.2
      Other................................      611.8      597.9      599.3      616.5      619.1      627.1      626.4      613.2
    Other current transfer receipts, from
     business (net)........................       29.3       29.3      157.8       37.5       40.4       29.5       29.5       29.3

  Less: Contributions for government social
   insurance...............................      867.6      873.5      874.5      878.1      882.2      882.6      885.6      903.2

Less: Personal current taxes...............    1,216.1    1,217.2    1,219.2    1,224.8    1,236.4    1,240.1    1,247.3    1,272.3

Equals: Disposable personal income.........    9,015.4    9,066.7    8,859.2    9,164.3    9,211.6    9,240.0    9,287.6    9,337.8

Less: Personal outlays.....................    9,065.4    9,186.8    9,149.1    9,185.9    9,210.5    9,257.7    9,323.3    9,401.2

  Personal consumption expenditures........    8,737.3    8,858.0    8,819.1    8,854.8    8,876.0    8,921.7    8,985.9    9,062.6
    Durable goods..........................    1,051.2    1,130.0    1,031.7      990.9      965.5    1,000.9    1,040.3    1,054.2
    Nondurable goods.......................    2,546.8    2,566.9    2,603.6    2,644.1    2,658.9    2,633.0    2,637.5    2,697.0
    Services...............................    5,139.2    5,161.2    5,183.8    5,219.8    5,251.6    5,287.9    5,308.2    5,311.4
  Personal interest payments\1\............      208.8      209.5      210.1      210.7      211.6      212.4      213.2      213.7
  Personal current transfer payments.......      119.3      119.4      119.8      120.4      122.9      123.6      124.2      124.8
    To government..........................       74.4       75.0       75.4       76.0       76.7       77.4       78.0       78.6
    To the rest of the world (net).........       44.9       44.4       44.4       44.4       46.2       46.2       46.2       46.2

Equals: Personal saving....................      -50.0     -120.2     -289.9      -21.7        1.1      -17.7      -35.7      -63.3

  Personal saving as a percentage of
   disposable personal income..............        -.6       -1.3       -3.3        -.2         .0        -.2        -.4        -.7

Addenda:
  Disposable personal income:
    Total, billions of chained (2000)
     dollars\2\............................    8,133.0    8,155.2    7,935.0    8,131.4    8,160.3    8,218.8    8,261.6    8,266.4
    Per capita:
      Current dollars......................     30,404     30,551     29,826     30,827     30,960     31,032     31,171     31,320
      Chained (2000) dollars...............     27,428     27,480     26,715     27,352     27,427     27,602     27,728     27,726
  Population (midperiod, thousands)\3\.....    296,522    296,769    297,027    297,285    297,534    297,756    297,954    298,147
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2005.
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]
-----------------------------------------------------------------------------------------------------------------------------------
                                                  2004    2005\r\     III 04      IV 04       I 05      II 05  III 05\r\   IV 05\r\
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................    9,713.3   10,249.3    9,729.2   10,024.8   10,073.4   10,185.7   10,250.4   10,487.7

  Compensation of employees, received......    6,687.6    7,126.2    6,724.2    6,895.8    7,001.7    7,060.2    7,177.6    7,265.5

    Wage and salary disbursements..........    5,389.4    5,723.4    5,422.0    5,562.9    5,629.9    5,672.3    5,762.3    5,829.2
      Private industries...................    4,450.0    4,751.8    4,479.2    4,612.9    4,668.1    4,705.0    4,787.3    4,846.7
        Goods-producing industries.........    1,049.9    1,120.6    1,062.3    1,083.0    1,099.2    1,107.2    1,130.0    1,146.1
          Manufacturing....................      687.7      722.0      696.1      707.8      715.3      715.5      724.7      732.6
        Services-producing industries......    3,400.1    3,631.2    3,416.8    3,529.9    3,568.8    3,597.9    3,657.4    3,700.7
          Trade, transportation, and
           utilities.......................      899.7      955.8      906.3      931.1      937.8      951.1      962.8      971.4
          Other services-producing
           industries......................    2,500.4    2,675.4    2,510.5    2,598.8    2,631.0    2,646.8    2,694.5    2,729.3
      Government...........................      939.5      971.6      942.8      950.0      961.8      967.3      975.0      982.4

    Supplements to wages and salaries......    1,298.1    1,402.8    1,302.3    1,332.9    1,371.8    1,387.9    1,415.3    1,436.3
      Employer contributions for employee
       pension and insurance funds.........      895.5      976.2      897.9      919.6      950.0      964.4      986.8    1,003.7
      Employer contributions for government
       social insurance....................      402.7      426.6      404.4      413.4      421.9      423.5      428.5      432.6

  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      889.6      938.7      889.1      900.9      917.9      936.6      932.4      967.7
    Farm...................................       35.8       20.8       29.7       24.6       24.7       19.6       18.0       21.0
    Nonfarm................................      853.8      917.8      859.4      876.3      893.2      917.1      914.3      946.6

  Rental income of persons with capital
   consumption adjustment..................      134.2       73.3      122.1      128.7      118.0      104.4      -11.1       82.1

  Personal income receipts on assets.......    1,396.5    1,456.7    1,378.2    1,493.6    1,407.9    1,439.8    1,468.9    1,510.3
    Personal interest income...............      905.9      945.0      904.7      907.4      915.4      936.0      951.2      977.5
    Personal dividend income...............      490.6      511.7      473.5      586.2      492.5      503.8      517.6      532.9

  Personal current transfer receipts.......    1,427.5    1,525.5    1,441.5    1,449.2    1,488.8    1,509.6    1,558.1    1,545.6
    Government social benefits to persons..    1,394.5    1,483.9    1,397.1    1,419.5    1,459.7    1,480.4    1,483.2    1,512.5
      Old-age, survivors, disability, and
       health insurance benefits...........      789.3      844.7      793.7      805.5      828.0      842.2      850.1      858.6
      Government unemployment insurance
       benefits............................       36.0       28.9       33.3       32.4       29.4       28.0       28.5       29.7
      Other................................      569.2      610.3      570.1      581.5      602.2      610.2      604.6      624.2
    Other current transfer receipts, from
     business (net)........................       33.0       41.6       44.4       29.8       29.1       29.2       74.8       33.1

  Less: Contributions for government social
   insurance...............................      822.2      871.2      825.9      843.5      861.0      864.9      875.4      883.5

Less: Personal current taxes...............    1,049.1    1,209.8    1,058.4    1,094.3    1,171.4    1,206.0    1,220.4    1,241.3

Equals: Disposable personal income.........    8,664.2    9,039.5    8,670.9    8,930.4    8,902.0    8,979.7    9,030.0    9,246.4

Less: Personal outlays.....................    8,512.5    9,073.4    8,566.3    8,725.0    8,854.6    9,001.2    9,173.9    9,263.8

  Personal consumption expenditures........    8,214.3    8,746.2    8,263.2    8,416.1    8,535.8    8,677.0    8,844.0    8,927.9
    Durable goods..........................      987.8    1,026.5      993.8    1,008.6    1,017.3    1,035.5    1,050.9    1,002.2
    Nondurable goods.......................    2,368.3    2,564.6    2,378.4    2,437.1    2,476.6    2,533.7    2,604.9    2,643.1
    Services...............................    4,858.2    5,155.1    4,891.0    4,970.4    5,041.8    5,107.8    5,188.3    5,282.6
  Personal interest payments\1\............      186.7      206.5      190.3      196.2      198.1      205.3      210.1      212.4
  Personal current transfer payments.......      111.5      120.7      112.8      112.7      120.8      118.8      119.9      123.6
    To government..........................       68.6       74.8       69.4       71.0       72.5       73.9       75.4       77.3
    To the rest of the world (net).........       42.9       46.0       43.4       41.7       48.3       44.9       44.4       46.2

Equals: Personal saving....................      151.8      -33.9      104.6      205.4       47.4      -21.5     -143.9      -17.4

  Personal saving as a percentage of
   disposable personal income..............        1.8        -.4        1.2        2.3         .5        -.2       -1.6        -.2

Addenda:
  Disposable personal income:
    Total, billions of chained (2000)
     dollars\2\............................    8,004.3    8,121.8    7,993.3    8,169.2    8,098.1    8,102.6    8,074.2    8,213.6
    Per capita:
      Current dollars......................     29,477     30,469     29,463     30,269     30,111     30,307     30,401     31,054
      Chained (2000) dollars...............     27,232     27,376     27,160     27,689     27,391     27,347     27,183     27,586
  Population (midperiod, thousands)\3\.....    293,933    296,677    294,301    295,037    295,643    296,289    297,027    297,748
-----------------------------------------------------------------------------------------------------------------------------------
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2005.
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]
-----------------------------------------------------------------------------------------------------------------------------------
                                                Jun 05  Jul 05\r\  Aug 05\r\  Sep 05\r\  Oct 05\r\  Nov 05\r\  Dec 05\r\  Jan 06\p\
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................       50.9       52.4     -205.6      310.8       59.0       32.0       54.8       75.2

  Compensation of employees, received......       27.3       64.3       19.7       42.3       37.7        7.9       30.4       57.3

    Wage and salary disbursements..........       24.6       48.5       10.9       32.6       29.8        4.7       25.6       40.8
      Private industries...................       23.8       45.2        7.9       28.3       28.5        2.0       24.2       34.2
        Goods-producing industries.........        5.0       12.0        7.8        2.9       11.1       -1.2        3.7        5.2
          Manufacturing....................        2.4        4.3        4.1         .4        9.3       -5.0         .9        1.3
        Services-producing industries......       18.8       33.3         .0       25.4       17.4        3.2       20.5       29.0
          Trade, transportation, and
           utilities.......................        5.0        7.7       -2.5        2.6        4.0        3.3        4.4        2.9
          Other services-producing
           industries......................       13.8       25.5        2.6       22.8       13.4        -.1       16.1       26.1
      Government...........................         .9        3.2        3.0        4.3        1.3        2.6        1.5        6.6

    Supplements to wages and salaries......        2.7       15.8        8.8        9.7        7.9        3.2        4.8       16.5
      Employer contributions for employee
       pension and insurance funds.........        1.2       12.9        8.5        7.8        5.7        3.1        3.4        9.6
      Employer contributions for government
       social insurance....................        1.4        2.9         .3        1.8        2.3         .0        1.4        7.0

  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................       12.2        1.6      -55.9       67.0        3.0        6.9        5.1        2.7
    Farm...................................       -3.9        3.2       -1.6         .3        1.4        1.9        2.0       -3.2
    Nonfarm................................       16.1       -1.7      -54.1       66.6        1.6        5.0        3.1        5.9

  Rental income of persons with capital
   consumption adjustment..................       -4.4       -3.2     -309.9      297.0       -3.4        4.3       -3.0       -2.7

  Personal income receipts on assets.......       13.1        8.1        7.9        8.1       16.7       16.7       16.7        7.6
    Personal interest income...............        8.9        3.2        3.1        3.2       11.5       11.6       11.5        3.3
    Personal dividend income...............        4.1        4.9        4.8        4.9        5.2        5.2        5.1        4.3

  Personal current transfer receipts.......        5.7      -12.4      133.5      -99.9        9.0       -3.5        8.7       27.9
    Government social benefits to persons..        5.7      -12.4        5.0       20.4        6.1        7.5        8.6       28.1
      Old-age, survivors, disability, and
       health insurance benefits...........        3.4        1.7        3.9         .7        2.9         .5       10.2       42.8
      Government unemployment insurance
       benefits............................         .4        -.2        -.3        2.4         .7       -1.1        -.8       -1.6
      Other................................        1.9      -13.9        1.4       17.2        2.6        8.0        -.7      -13.2
    Other current transfer receipts, from
     business (net)........................         .1         .0      128.5     -120.3        2.9      -10.9         .0        -.2

  Less: Contributions for government social
   insurance...............................        2.9        5.9        1.0        3.6        4.1         .4        3.0       17.6

Less: Personal current taxes...............       10.1        1.1        2.0        5.6       11.6        3.7        7.2       25.0

Equals: Disposable personal income.........       40.8       51.3     -207.5      305.1       47.3       28.4       47.6       50.2

Less: Personal outlays.....................       94.0      121.4      -37.7       36.8       24.6       47.2       65.6       77.9

  Personal consumption expenditures........       90.1      120.7      -38.9       35.7       21.2       45.7       64.2       76.7
    Durable goods..........................       42.3       78.8      -98.3      -40.8      -25.4       35.4       39.4       13.9
    Nondurable goods.......................       21.7       20.1       36.7       40.5       14.8      -25.9        4.5       59.5
    Services...............................       26.0       22.0       22.6       36.0       31.8       36.3       20.3        3.2
  Personal interest payments\1\............        3.5         .7         .6         .6         .9         .8         .8         .5
  Personal current transfer payments.......         .5         .1         .4         .6        2.5         .7         .6         .6
    To government..........................         .4         .6         .4         .6         .7         .7         .6         .6
    To the rest of the world (net).........         .0        -.5         .0         .0        1.8         .0         .0         .0

Equals: Personal saving....................      -53.2      -70.2     -169.7      268.2       22.8      -18.8      -18.0      -27.6

Addendum:
  Real disposable personal income, billions
   of chained (2000) dollars\2\............       35.9       22.2     -220.2      196.4       28.9       58.5       42.8        4.8
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2005.
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]
-----------------------------------------------------------------------------------------------------------------------------------
                                                  2004    2005\r\     III 04      IV 04       I 05      II 05  III 05\r\   IV 05\r\
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................      544.2      536.0      114.9      295.6       48.6      112.3       64.7      237.3

  Compensation of employees, received......      366.5      438.6      120.6      171.6      105.9       58.5      117.4       87.9

    Wage and salary disbursements..........      278.3      334.0      103.9      140.9       67.0       42.4       90.0       66.9
      Private industries...................      242.2      301.8       98.9      133.7       55.2       36.9       82.3       59.4
        Goods-producing industries.........       42.7       70.7       26.7       20.7       16.2        8.0       22.8       16.1
          Manufacturing....................       19.0       34.3       18.5       11.7        7.5         .2        9.2        7.9
        Services-producing industries......      199.5      231.1       72.0      113.1       38.9       29.1       59.5       43.3
          Trade, transportation, and
           utilities.......................       41.1       56.1       16.8       24.8        6.7       13.3       11.7        8.6
          Other services-producing
           industries......................      158.4      175.0       55.2       88.3       32.2       15.8       47.7       34.8
      Government...........................       36.2       32.1        5.1        7.2       11.8        5.5        7.7        7.4

    Supplements to wages and salaries......       88.1      104.7       16.8       30.6       38.9       16.1       27.4       21.0
      Employer contributions for employee
       pension and insurance funds.........       65.5       80.7       10.4       21.7       30.4       14.4       22.4       16.9
      Employer contributions for government
       social insurance....................       22.7       23.9        6.4        9.0        8.5        1.6        5.0        4.1

  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................       79.4       49.1       -9.3       11.8       17.0       18.7       -4.2       35.3
    Farm...................................        8.1      -15.0      -14.4       -5.1         .1       -5.1       -1.6        3.0
    Nonfarm................................       71.4       64.0        5.2       16.9       16.9       23.9       -2.8       32.3

  Rental income of persons with capital
   consumption adjustment..................        2.5      -60.9      -19.7        6.6      -10.7      -13.6     -115.5       93.2

  Personal income receipts on assets.......       57.8       60.2       14.3      115.4      -85.7       31.9       29.1       41.4
    Personal interest income...............      -11.7       39.1        -.4        2.7        8.0       20.6       15.2       26.3
    Personal dividend income...............       69.5       21.1       14.7      112.7      -93.7       11.3       13.8       15.3

  Personal current transfer receipts.......       83.5       98.0       21.7        7.7       39.6       20.8       48.5      -12.5
    Government social benefits to persons..       81.0       89.4        6.3       22.4       40.2       20.7        2.8       29.3
      Old-age, survivors, disability, and
       health insurance benefits...........       50.0       55.4        8.8       11.8       22.5       14.2        7.9        8.5
      Government unemployment insurance
       benefits............................      -16.8       -7.1       -2.0        -.9       -3.0       -1.4         .5        1.2
      Other................................       47.8       41.1        -.6       11.4       20.7        8.0       -5.6       19.6
    Other current transfer receipts, from
     business (net)........................        2.5        8.6       15.5      -14.6        -.7         .1       45.6      -41.7

  Less: Contributions for government social
   insurance...............................       45.6       49.0       12.9       17.6       17.5        3.9       10.5        8.1

Less: Personal current taxes...............       49.2      160.7       24.4       35.9       77.1       34.6       14.4       20.9

Equals: Disposable personal income.........      495.0      375.3       90.6      259.5      -28.4       77.7       50.3      216.4

Less: Personal outlays.....................      516.2      560.9      127.2      158.7      129.6      146.6      172.7       89.9

  Personal consumption expenditures........      504.4      531.9      117.6      152.9      119.7      141.2      167.0       83.9
    Durable goods..........................       37.7       38.7       19.2       14.8        8.7       18.2       15.4      -48.7
    Nondurable goods.......................      179.3      196.3       23.2       58.7       39.5       57.1       71.2       38.2
    Services...............................      287.4      296.9       75.1       79.4       71.4       66.0       80.5       94.3
  Personal interest payments\1\............        3.5       19.8        8.1        5.9        1.9        7.2        4.8        2.3
  Personal current transfer payments.......        8.2        9.2        1.5        -.1        8.1       -2.0        1.1        3.7
    To government..........................        6.5        6.2        1.6        1.6        1.5        1.4        1.5        1.9
    To the rest of the world (net).........        1.7        3.1        -.1       -1.7        6.6       -3.4        -.5        1.8

Equals: Personal saving....................      -21.0     -185.7      -36.6      100.8     -158.0      -68.9     -122.4      126.5

Addendum:
  Real disposable personal income, billions
   of chained (2000) dollars\2\............      262.5      117.5       54.5      175.9      -71.1        4.5      -28.4      139.4
-----------------------------------------------------------------------------------------------------------------------------------
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2005.
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]
-----------------------------------------------------------------------------------------------------------------------------------
                                                Jun 05  Jul 05\r\  Aug 05\r\  Sep 05\r\  Oct 05\r\  Nov 05\r\  Dec 05\r\  Jan 06\p\
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................         .5         .5       -2.0        3.1         .6         .3         .5         .7
  Compensation of employees, received......         .4         .9         .3         .6         .5         .1         .4         .8
    Wage and salary disbursements..........         .4         .9         .2         .6         .5         .1         .4         .7
    Supplements to wages and salaries......         .2        1.1         .6         .7         .6         .2         .3        1.1
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................        1.3         .2       -5.9        7.5         .3         .7         .5         .3
  Rental income of persons with capital
   consumption adjustment..................       -4.3       -3.2      .....      .....       -4.1        5.4       -3.5       -3.4
  Personal income receipts on assets.......         .9         .6         .5         .5        1.1        1.1        1.1         .5
    Personal interest income...............        1.0         .3         .3         .3        1.2        1.2        1.2         .3
    Personal dividend income...............         .8        1.0         .9         .9        1.0        1.0        1.0         .8
  Personal current transfer receipts.......         .4        -.8        8.9       -6.1         .6        -.2         .6        1.8

  Less: Contributions for government social
   insurance...............................         .3         .7         .1         .4         .5         .0         .3        2.0

Less: Personal current taxes...............         .8         .1         .2         .5         .9         .3         .6        2.0

Equals: Disposable personal income.........         .5         .6       -2.3        3.4         .5         .3         .5         .5

Addenda:
  Personal consumption expenditures........        1.0        1.4        -.4         .4         .2         .5         .7         .9
    Durable goods..........................        4.2        7.5       -8.7       -4.0       -2.6        3.7        3.9        1.3
    Nondurable goods.......................         .9         .8        1.4        1.6         .6       -1.0         .2        2.3
    Services...............................         .5         .4         .4         .7         .6         .7         .4         .1

  Real disposable personal income..........         .4         .3       -2.7        2.5         .4         .7         .5         .1
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2005.

             Table 6.--Personal Income and Its Disposition, Percent Change from Preceding Period (Years and Quarters)
                                          [Quarters seasonally adjusted at annual rates]
-----------------------------------------------------------------------------------------------------------------------------------
                                                  2004    2005\r\     III 04      IV 04       I 05      II 05  III 05\r\   IV 05\r\
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................        5.9        5.5        4.9       12.7        2.0        4.5        2.6        9.6
  Compensation of employees, received......        5.8        6.6        7.5       10.6        6.3        3.4        6.8        5.0
    Wage and salary disbursements..........        5.4        6.2        8.0       10.8        4.9        3.0        6.5        4.7
    Supplements to wages and salaries......        7.3        8.1        5.3        9.8       12.2        4.8        8.1        6.1
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................        9.8        5.5       -4.0        5.4        7.8        8.4       -1.8       16.0
  Rental income of persons with capital
   consumption adjustment..................        1.9      -45.4      -44.9       23.6      -29.5      -38.6      .....      .....
  Personal income receipts on assets.......        4.3        4.3        4.3       37.9      -21.0        9.4        8.3       11.8
    Personal interest income...............       -1.3        4.3        -.2        1.2        3.6        9.3        6.7       11.5
    Personal dividend income...............       16.5        4.3       13.5      134.9      -50.2        9.5       11.4       12.3
  Personal current transfer receipts.......        6.2        6.9        6.3        2.2       11.4        5.7       13.5       -3.2

  Less: Contributions for government social
   insurance...............................        5.9        6.0        6.5        8.8        8.5        1.8        4.9        3.7

Less: Personal current taxes...............        4.9       15.3        9.8       14.3       31.3       12.4        4.8        7.0

Equals: Disposable personal income.........        6.1        4.3        4.3       12.5       -1.3        3.5        2.3        9.9

Addenda:
  Personal consumption expenditures........        6.5        6.5        5.9        7.6        5.8        6.8        7.9        3.8
    Durable goods..........................        4.0        3.9        8.1        6.1        3.5        7.3        6.1      -17.3
    Nondurable goods.......................        8.2        8.3        4.0       10.3        6.6        9.5       11.7        6.0
    Services...............................        6.3        6.1        6.4        6.7        5.9        5.3        6.5        7.5

  Real disposable personal income..........        3.4        1.5        2.8        9.1       -3.4         .2       -1.4        7.1
-----------------------------------------------------------------------------------------------------------------------------------
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2005.

                        Table 7.--Real Personal Consumption Expenditures by Major Type of Product (Months)
-----------------------------------------------------------------------------------------------------------------------------------
                                                Jun 05     Jul 05     Aug 05     Sep 05  Oct 05\r\  Nov 05\r\  Dec 05\r\  Jan 06\p\
-----------------------------------------------------------------------------------------------------------------------------------
                                           ----------------------------------------------------------------------------------------
                                                                     Billions of chained (2000) dollars,
                                                                     seasonally adjusted at annual rates
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........    7,882.1    7,967.5    7,899.2    7,856.9    7,863.0    7,935.8    7,993.2    8,022.8
  Durable goods............................    1,163.5    1,255.9    1,149.8    1,103.6    1,075.1    1,116.5    1,161.8    1,176.4
  Nondurable goods.........................    2,304.3    2,306.1    2,314.5    2,296.7    2,316.9    2,339.1    2,348.6    2,378.8
  Services.................................    4,435.0    4,443.7    4,452.2    4,464.5    4,472.1    4,488.7    4,500.2    4,488.3
                                           ----------------------------------------------------------------------------------------
                                                     Change from preceding period in billions of chained (2000) dollars,
                                                                     seasonally adjusted at annual rates
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........       80.4       85.4      -68.3      -42.3        6.1       72.8       57.4       29.6
  Durable goods............................       51.4       92.4     -106.1      -46.2      -28.5       41.4       45.3       14.6
  Nondurable goods.........................       24.5        1.8        8.4      -17.8       20.2       22.2        9.5       30.2
  Services.................................       13.5        8.7        8.5       12.3        7.6       16.6       11.5      -11.9
                                           ----------------------------------------------------------------------------------------
                                                       Percent change from preceding period in chained (2000) dollars,
                                                                     seasonally adjusted at monthly rates
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........        1.0        1.1        -.9        -.5         .1         .9         .7         .4
  Durable goods............................        4.6        7.9       -8.5       -4.0       -2.6        3.9        4.1        1.3
  Nondurable goods.........................        1.1         .1         .4        -.8         .9        1.0         .4        1.3
  Services.................................         .3         .2         .2         .3         .2         .4         .3        -.3
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary
r Revised

                  Table 8.--Real Personal Consumption Expenditures by Major Type of Product (Years and Quarters)
                                          [Quarters seasonally adjusted at annual rates]
-----------------------------------------------------------------------------------------------------------------------------------
                                                  2004    2005\r\     III 04      IV 04       I 05      II 05     III 05   IV 05\r\
-----------------------------------------------------------------------------------------------------------------------------------
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........    7,588.6    7,858.2    7,617.5    7,698.8    7,764.9    7,829.5    7,907.9    7,930.6
  Durable goods............................    1,089.9    1,138.4    1,100.4    1,115.1    1,122.3    1,143.9    1,169.7    1,117.8
  Nondurable goods.........................    2,200.4    2,298.0    2,206.9    2,236.5    2,265.6    2,285.9    2,305.8    2,334.8
  Services.................................    4,310.9    4,437.5    4,324.0    4,362.1    4,392.0    4,417.6    4,453.5    4,487.0
                                           ----------------------------------------------------------------------------------------
                                                                       Change from preceding period in
                                                                      billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........      282.0      269.6       80.9       81.3       66.1       64.6       78.4       22.7
  Durable goods............................       61.4       48.5       27.9       14.7        7.2       21.6       25.8      -51.9
  Nondurable goods.........................       98.6       97.6       20.8       29.6       29.1       20.3       19.9       29.0
  Services.................................      127.0      126.6       35.4       38.1       29.9       25.6       35.9       33.5
                                           ----------------------------------------------------------------------------------------
                                                                     Percent change from preceding period
                                                                          in chained (2000) dollars
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........        3.9        3.6        4.4        4.3        3.5        3.4        4.1        1.2
  Durable goods............................        6.0        4.5       10.8        5.5        2.6        7.9        9.3      -16.6
  Nondurable goods.........................        4.7        4.4        3.9        5.5        5.3        3.6        3.5        5.1
  Services.................................        3.0        2.9        3.4        3.6        2.8        2.3        3.3        3.0
-----------------------------------------------------------------------------------------------------------------------------------
r Revised

      Table 9.--Price Indexes for Personal Consumption Expenditures: Level and Percent Change From Preceding Period (Months)
-----------------------------------------------------------------------------------------------------------------------------------
                                                Jun 05     Jul 05     Aug 05     Sep 05  Oct 05\r\  Nov 05\r\  Dec 05\r\  Jan 06\p\
-----------------------------------------------------------------------------------------------------------------------------------
                                           ----------------------------------------------------------------------------------------
                                                                     Chain-type price indexes (2000=100),
                                                                             seasonally adjusted
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures (PCE)....    110.858    111.181    111.651    112.707    112.890    112.432    112.426    112.969
  Durable goods............................     90.354     89.979     89.742     89.795     89.804     89.637     89.537     89.606
  Nondurable goods.........................    110.536    111.318    112.499    115.138    114.766    112.572    112.307    113.385
  Services.................................    115.888    116.154    116.442    116.929    117.440    117.813    117.965    118.347
Addenda:
  PCE excluding food and energy............    109.203    109.264    109.428    109.658    109.846    110.045    110.196    110.369
  Market-based PCE\1\......................    109.864    110.213    110.704    111.834    111.988    111.418    111.388    111.936
  Market-based PCE excluding food
   and energy\1\...........................    107.617    107.657    107.787    107.946    108.098    108.288    108.439    108.548
                                           ----------------------------------------------------------------------------------------
                                                            Percent change from preceding period in price indexes,
                                                                     seasonally adjusted at monthly rates
                                           ----------------------------------------------------------------------------------------
PCE........................................         .0         .3         .4         .9         .2        -.4         .0         .5
  Durable goods............................        -.4        -.4        -.3         .1         .0        -.2        -.1         .1
  Nondurable goods.........................        -.2         .7        1.1        2.3        -.3       -1.9        -.2        1.0
  Services.................................         .2         .2         .2         .4         .4         .3         .1         .3
Addenda:
  PCE excluding food and energy............         .1         .1         .2         .2         .2         .2         .1         .2
  Market-based PCE\1\......................         .0         .3         .4        1.0         .1        -.5         .0         .5
  Market-based PCE excluding food
   and energy\1\...........................         .0         .0         .1         .1         .1         .2         .1         .1
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary
r Revised
1. This index is a supplemental measure that is based on household
   expenditures for which there are observable price measures.  It
   excludes most implicit prices (for example, the services furnished
   without payment by financial intermediaries) and the expenses of
   nonprofit institutions.

   Table 10.--Real Disposable Personal Income and Real Personal Consumption Expenditures: Percent Change From Month One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------
                                                Jun 05  Jul 05\r\  Aug 05\r\  Sep 05\r\  Oct 05\r\  Nov 05\r\  Dec 05\r\  Jan 06\p\
-----------------------------------------------------------------------------------------------------------------------------------
Disposable personal income.................        2.5        2.3        -.9        1.6        1.5        1.8       -1.6        2.2

Personal consumption expenditures..........        4.6        4.7        3.8        2.9        2.5        3.2        3.3        3.6
  Durable goods............................        9.1       13.1        5.0         .7       -2.3         .9        2.1        6.3
  Nondurable goods.........................        5.4        5.0        5.2        3.3        3.6        4.8        4.8        5.0
  Services.................................        3.3        3.0        3.0        3.0        2.9        2.9        2.8        2.4
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2005.

              Table 11.--Price Indexes for Personal Consumption Expenditures: Percent Change From Month One Year Ago
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                                                Jun 05     Jul 05     Aug 05     Sep 05  Oct 05\r\  Nov 05\r\  Dec 05\r\  Jan 06\p\
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Personal consumption expenditures (PCE)....        2.2        2.6        2.9        3.8        3.4        2.8        2.8        3.1
  Durable goods............................        -.5        -.6        -.5        -.5        -.7        -.9       -1.1       -1.3
  Nondurable goods.........................        2.0        3.3        4.4        6.8        5.2        3.1        3.3        4.3
  Services.................................        2.9        2.9        2.9        3.2        3.4        3.3        3.3        3.3
Addenda:
  PCE excluding food and energy............        1.9        1.9        2.0        2.0        1.9        1.9        1.9        1.8
  Market-based PCE\1\......................        2.1        2.4        2.9        3.8        3.5        2.7        2.7        3.1
  Market-based PCE excluding food
   and energy\1\...........................        1.6        1.6        1.7        1.7        1.6        1.6        1.7        1.5
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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.