EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, TUESDAY, AUGUST 4, 2009
* See the navigation bar at the right side of the news release text for links to data tables,
contact personnel and their telephone numbers, and supplementary materials.
PERSONAL INCOME AND OUTLAYS: JUNE 2009
REVISED ESTIMATES: 1929 THROUGH MAY 2009
REVISED ESTIMATES: 1929 THROUGH MAY 2009
Personal income decreased $159.8 billion, or 1.3 percent, and disposable personal income (DPI) decreased $143.8 billion, or 1.3 percent, in June, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $41.4 billion, or 0.4 percent. In May, personal income increased $155.1 billion, or 1.3 percent, DPI increased $168.7 billion, or 1.6 percent, and PCE increased $9.0 billion, or 0.1 percent, based on revised estimates. 2009 Feb. Mar. Apr. May June (Percent change from preceding month) Personal income, current dollars -0.8 -0.5 0.2 1.3 -1.3 Disposable personal income: Current dollars -0.7 -0.2 0.9 1.6 -1.3 Chained (2005) dollars -1.0 -0.1 0.8 1.5 -1.8 Personal consumption expenditures: Current dollars 0.4 -0.3 -0.1 0.1 0.4 Chained (2005) dollars 0.1 -0.2 -0.2 0.0 -0.1 This release presents revised estimates of personal income and its disposition that reflect the comprehensive revision of the national income and product accounts released on July 31. Tables containing historical data will be posted when they become available on BEA’s Web site. For more information on the revision, see the text and box on pages 5 and 6. Real disposable income decreased 1.8 percent in June, in contrast to an increase of 1.5 percent in May. Real PCE decreased 0.1 percent, in contrast to an increase of less than 0.1 percent. The June change in personal income reflects selected provisions of the American Recovery and Reinvestment Act of 2009, which boosted personal current transfer receipts in May much more than in June. Excluding these receipts, which are discussed more fully below, personal income decreased $7.8 billion, or 0.1 percent, in June, following a decrease of $2.5 billion, or less than 0.1 percent, in May. Wages and salaries Private wage and salary disbursements decreased $28.6 billion in June, compared with a decrease of $11.3 billion in May. Goods-producing industries' payrolls decreased $11.1 billion, compared with a decrease of $10.9 billion; manufacturing payrolls decreased $6.7 billion, compared with a decrease of $8.4 billion. Services-producing industries' payrolls decreased $17.5 billion, compared with a decrease of $0.4 billion. Government wage and salary disbursements increased $2.8 billion, compared with an increase of $4.3 billion. Other personal income Supplements to wages and salaries decreased $0.3 billion in June, in contrast to an increase of $1.0 billion in May. Proprietors' income decreased $1.0 billion in June, compared with a decrease of $1.9 billion in May. Farm proprietors' income decreased $0.9 billion, in contrast to an increase of $0.6 billion. Nonfarm proprietors' income decreased $0.2 billion, compared with a decrease of $2.5 billion. Rental income of persons increased $2.8 billion in June, compared with an increase of $3.2 billion in May. Personal income receipts on assets (personal interest income plus personal dividend income) decreased $7.3 billion in June, the same decrease as in May. Personal current transfer receipts decreased $131.7 billion in June, in contrast to an increase of $166.1 billion in May. The May change had reflected one-time payments of $250 to eligible individuals receiving social security, supplemental security income, and railroad retirement benefits, which boosted personal current transfers by $157.6 billion at an annual rate in May. The June change reflected one-time payments of $250 to eligible individuals receiving veteran benefits, which boosted the level of personal current transfer receipts by $5.6 billion in June. Contributions for government social insurance -- a subtraction in calculating personal income -- decreased $3.5 billion in June, compared with a decrease of $0.8 billion in May. Personal current taxes and disposable personal income Personal current taxes decreased $16.0 billion in June, compared with a decrease of $13.6 billion in May. Disposable personal income (DPI) -- personal income less personal current taxes -- decreased $143.8 billion, or 1.3 percent, in June, in contrast to an increase of $168.7 billion, or 1.6 percent in May. Personal outlays and personal saving Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $32.4 billion in June, in contrast to a decrease of $0.1 billion in May. PCE increased $41.4 billion, compared with an increase of $9.0 billion. Personal saving -- DPI less personal outlays -- was $504.8 billion in June, compared with $681.0 billion in May. Personal saving as a percentage of disposable personal income was 4.6 percent in June, compared with 6.2 percent in May. For a comparison of personal saving in BEA’s national income and product accounts with personal saving in the Federal Reserve Board’s flow of funds accounts and data on changes in net worth, go to http://www.bea.gov/national/nipaweb/Nipa-Frb.asp. Real DPI, real PCE and PCE price index Real DPI -- DPI adjusted to remove price changes -- decreased 1.8 percent in June, in contrast to an increase of 1.5 percent in May. Real PCE -- PCE adjusted to remove price changes –- decreased 0.1 percent in June, in contrast to an increase of less than 0.1 percent in May. Purchases of durable goods decreased 0.2 percent, in contrast to an increase of 1.2 percent. Purchases of motor vehicles and parts more than accounted for the decrease in June and accounted for most of the increase in May. Purchases of nondurable goods decreased 0.4 percent in June, compared with a decrease of 0.1 percent in May. Purchases of services decreased less than 0.1 percent, compared with a decrease of 0.1 percent. PCE price index -- The price index for PCE increased 0.5 percent in June, compared with an increase of 0.1 percent in May. The PCE price index, excluding food and energy, increased 0.2 percent, compared with an increase of 0.1 percent. Revision of the Personal Income and Outlays Estimates The statistics released today reflect the results of the comprehensive (or benchmark) revision of the national income and product accounts (NIPAs). Comprehensive revisions, which are carried out about every 5 years, are an important part of BEA’s regular process for improving and modernizing its accounts to keep pace with the ever-changing U.S. economy. The comprehensive revisions incorporate several improvements, including changes in definitions and classifications that update the accounts to more accurately portray the evolving U.S. economy, changes in presentation that make the NIPA tables more informative and easier to use, and statistical changes that introduce new and improved methodologies and that bring in newly available and revised source data. For this comprehensive revision, personal income, personal outlays, DPI, and personal saving are revised from 1929 through the first quarter of 2009. The most notable revisions are generally limited to the period from 1997 to the first quarter of 2009. The revisions for earlier periods tend to be small. The revisions to personal income and outlays, for 2006-2008, are shown in table 12. Revised and previously published monthly estimates of personal income, DPI, PCE, personal saving as a percentage of DPI, real DPI, and real PCE are shown in table 13; revised and previously published annual and quarterly estimates are shown in table 14. Personal income was revised up for 2006-2008 to mainly reflect upward revisions to rental income of persons and to nonfarm proprietors’ income. For 2006 and 2007, the upward revisions reflect upward revisions to wages and salaries. For 2007 and 2008, the upward revisions reflect upward revisions to personal interest income. The upward revisions to personal income are moderated by downward revisions to personal dividend income for 2007 and 2008. The revisions to personal current taxes were small for 2006 and 2007. The larger downward revision for 2008 results from the incorporation of new tax collections data from the Treasury Department and the Social Security Administration. The pattern of revisions to disposable personal income, which is equal to personal income less personal current taxes, is similar to that for personal income. The magnitudes differ, especially for 2008, because of the large downward revision to personal current taxes. Personal outlays was revised up for 2006-2008. This series consists of PCE, personal interest payments, and personal current transfer payments. The revisions to personal outlays primarily reflect the upward revisions to PCE. The personal saving rate was revised up for 2006-2008. Personal saving as a percent of DPI was revised up for 2006-2008. NOTE. -- BEA acknowledges the special efforts by the Bureau of Labor Statistics (BLS) with the assistance of 13 state employment offices to provide preliminary data for the first quarter of 2009 from the quarterly census of employment and wages. Wage and salary data from the state employment offices of California, Connecticut, Florida, Georgia, Illinois, Massachusetts, Missouri, North Carolina, New Jersey, New York, Ohio, Pennsylvania, and Texas were provided. These data greatly improved the estimates of wages and salaries. Comprehensive Revision of the National Income and Product Accounts The estimates released today reflect the results of the comprehensive (or benchmark) revision of the national income and product accounts (NIPAs). More information on the revision is available on the BEA’s Web site at www.bea.gov/national/an1.htm, including links to an article in the March 2009 Survey of Current Business that discussed the changes in definitions and presentation that have been implemented in the revision and to an article in the May Survey that described changes in statistical methods. The September Survey will contain an article that describes the results of the revision in detail. The Web site also contains FAQs and other information about the revision. 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 – August 28, 2009 at 8:30 A.M. EDT for Personal Income and Outlays for July. ________________________ NOTE. -- Monthly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified. Month-to-month dollar changes are differences between these published estimates. Month-to-month percent changes are calculated from unrounded data and are not annualized. “Real” estimates are in chained (2005) dollars. This news release is available on BEA’s Web site at www.bea.gov/newsreleases/rels.htm.