Home > News Release: Personal Income and Outlays, September 2009
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, OCTOBER 30, 2009
BEA 09-48


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PERSONAL INCOME AND OUTLAYS: SEPTEMBER 2009
Personal income decreased $0.1 billion, or less than 0.1 percent, and disposable personal income
(DPI) decreased $0.2 billion, or less than 0.1 percent, in September, according to the Bureau of Economic
Analysis.  Personal consumption expenditures (PCE) decreased $47.2 billion, or 0.5 percent.  In
August, personal income increased $17.4 billion, or 0.1 percent, DPI increased $14.1 billion, or
0.1 percent, and PCE increased $139.8 billion, or 1.4 percent, based on revised estimates.

Real disposable income decreased 0.1 percent in September, compared with a decrease of 0.2
percent in August.  Real PCE decreased 0.6 percent, in contrast to an increase of 1.0 percent.

                                        2009
                                        May             June            July            Aug.            Sept.
                                                       (Percent change from preceding month)
Personal income, current dollars        1.3            -1.1             0.1             0.1             0.0
Disposable personal income:
 Current dollars                        1.6            -1.1            -0.1             0.1             0.0
 Chained (2005) dollars                 1.5            -1.6            -0.1            -0.2            -0.1
Personal consumption expenditures:
 Current dollars                        0.1             0.7             0.2             1.4            -0.5
 Chained (2005) dollars                 0.0             0.2             0.2             1.0            -0.6

                                Wages and salaries

Private wage and salary disbursements decreased $11.2 billion in September, in contrast to an increase
of $10.1 billion in August.  Goods-producing industries' payrolls decreased $7.8 billion, compared
with a decrease of $6.3 billion; manufacturing payrolls decreased $1.5 billion, compared with a
decrease of $4.1 billion.  Services-producing industries' payrolls decreased $3.4 billion, in contrast
to an increase of $16.4 billion.  Government wage and salary disbursements increased $0.2 billion
compared with an increase of $2.4 billion.

                                Other personal income

Supplements to wages and salaries increased $0.1 billion in September, compared with an increase of $2.0 billion in August.

Proprietors' income increased $0.7 billion in September, compared with an increase of $3.4 billion in August.
Farm proprietors' income decreased $1.6 billion, compared with a decrease of $1.2 billion.  Nonfarm proprietors'
income increased $2.3 billion, compared with an increase of $4.6 billion.

Rental income of persons increased $5.4 billion in September, compared with an increase of $5.2 billion in August.
Personal income receipts on assets (personal interest income plus personal dividend income) decreased $13.8 billion,
the same decrease as in August.  Personal current transfer receipts increased $17.3 billion in September,
compared with an increase of $9.6 billion in August.

Contributions for government social insurance -- a subtraction in calculating personal income --  decreased
$1.4 billion in September, in contrast to an increase of $1.7 billion in August.

                                Personal current taxes and disposable personal income

Personal current taxes increased $0.1 billion in September, compared with an increase of $3.3 billion in August.
Disposable personal income (DPI) -- personal income less personal current taxes -- decreased $0.2 billion,
or less than 0.1 percent, in September, in contrast to an increase of $14.1 billion, or 0.1 percent, in August.

                                Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- decreased
$48.8 billion in September, in contrast to an increase of $138.2 billion in August.  PCE decreased $47.2
billion, in contrast to an increase of $139.8 billion.

Personal saving -- DPI less personal outlays -- was $355.6 billion in September, compared with $307.0 billion in
August.  Personal saving as a percentage of disposable personal income was 3.3 percent in September, compared with
2.8 percent in August.  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 price index

Real DPI -- DPI adjusted to remove price changes -- decreased 0.1 percent in September, compared with a decrease of 0.2
percent in August.

Real PCE -- PCE adjusted to remove price changes -- decreased 0.6 percent in September, in contrast to an increase of 1.0
percent in August.  Purchases of durable goods decreased 7.2 percent, in contrast to an increase of 6.7 percent.  Purchases
of motor vehicles and parts accounted for most of the decrease in September and for most of the increase in August,
reflecting the impact of the federal CARS program (popularly called “cash for clunkers”).  The program, which provided a
credit for customers who purchased a qualifying new, more fuel efficient auto or light truck, ended on August 24, 2009.  For
further information on how the CARS program is reflected in the GDP statistics, please see the FAQ at BEA’s Web site,
www.bea.gov, “How will the federal Consumer Assistance to Recycle and Save Act of 2009 (i.e., the CARS program) be
reflected in the National Income and Product Accounts (NIPAs)?”  Purchases of nondurable goods increased 0.5 percent
in September, compared with an increase of 0.9 percent in August.  Purchases of services increased 0.1 percent, compared
with an increase of 0.2 percent.

PCE price index -- The price index for PCE increased 0.1 percent in September, compared with an increase of 0.3
percent in August.  The PCE price index, excluding food and energy, increased 0.1 percent, the same increase as in August.

                                Revisions

Estimates have been revised for July and August.  Changes in personal income, current-dollar and chained
(2005) dollar DPI, and current-dollar and chained (2005) dollar PCE for July and August -- revised
and as published in last month's release -- are shown below.

                                                                Change from preceding month
                                        July                                      August
                                        Previous   Revised   Previous   Revised   Previous   Revised   Previous   Revised
                                       (Billions of dollars)      (Percent)      (Billions of dollars)      (Percent)
Personal Income:
 Current dollars                        19.4       10.4      0.2        0.1       19.3       17.4      0.2        0.1
Disposable personal income:
 Current Dollars                       -2.0       -7.6       0.0       -0.1       15.5       14.1      0.1        0.1
 Chained (2005) dollars                -5.6       -10.8     -0.1       -0.1      -19.7      -21.2     -0.2       -0.2
Personal consumption expenditures:
 Current dollars                        25.2       23.5      0.3        0.2       129.6      139.8     1.3        1.4
 Chained (2005) dollars                 19.5       17.9      0.2        0.2       86.9       96.0      0.9        1.0

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 -- November 25, 2009 at 8:30 A.M. EST for Personal Income and Outlays for October.

                                -more-

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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.