Home > News Release: Personal Income and Outlays, June 2010
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, TUESDAY, AUGUST 3, 2010
BEA 10-38


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Personal Income and Outlays, June 2010
Revised Estimates: 2007 Through May 2010
Personal income increased $3.0 billion, or less than 0.1 percent, and disposable personal income
(DPI) increased $5.1 billion, or less than 0.1 percent, in June, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) decreased $2.9 billion, or less than 0.1 percent.
In May, personal income increased $40.5 billion, or 0.3 percent, DPI increased $36.9 billion, or 0.3
percent, and PCE increased $8.6 billion, or 0.1 percent, based on revised estimates.

Real disposable income increased 0.2 percent in June, compared with an increase of 0.4 percent in May.
Real PCE increased 0.1 percent, compared with an increase of 0.2 percent.

                                        2010
                                        Feb.            Mar.            Apr.            May             June
                                                       (Percent change from preceding month)
Personal income, current dollars        0.1             0.4             0.4             0.3             0.0
Disposable personal income:
 Current dollars                        0.1             0.4             0.5             0.3             0.0
 Chained (2005) dollars                 0.1             0.3             0.5             0.4             0.2
Personal consumption expenditures:
 Current dollars                        0.5             0.5            -0.1             0.1             0.0
 Chained (2005) dollars                 0.4             0.3            -0.1             0.2             0.1

                                Wages and salaries

Private wage and salary disbursements decreased $5.2 billion in June, in contrast to an increase
of $19.2 billion in May.  Goods-producing industries' payrolls decreased $8.9 billion, in contrast to
an increase of $10.4 billion; manufacturing payrolls decreased $6.0 billion, in contrast to an increase
of $7.8 billion.  Services-producing industries' payrolls increased $3.7 billion, compared with an
increase of $8.8 billion.  Government wage and salary disbursements decreased $0.6 billion, in contrast
to an increase of $7.0 billion.  The decline in the number of temporary workers for Census 2010 subtracted
$3.4 billion at an annual rate from federal civilian payrolls in June; the hiring of additional
temporary workers had added $5.7 billion at an annual rate in May.

                                Other personal income

Supplements to wages and salaries increased $1.9 billion in June, compared with an increase of $4.1 billion in May.

Proprietors' income decreased $4.4 billion in June, in contrast to an increase of $2.2 billion in May.
Farm proprietors' income increased $0.2 billion, the same increase as in May.  Nonfarm proprietors' income
decreased $4.7 billion in June, in contrast to an increase of $2.0 billion in May.

Rental income of persons increased $1.8 billion in June, the same increase as in May.  Personal income
receipts on assets (personal interest income plus personal dividend income) increased $1.9 billion in
June, compared with an increase of $4.1 billion in May.  Personal current transfer receipts increased
$7.2 billion, compared with an increase of $6.0 billion.

Contributions for government social insurance -- a subtraction in calculating personal income --  decreased
$0.4 billion in June, in contrast to an increase of $3.8 billion in May.

                                Personal current taxes and disposable personal income

Personal current taxes decreased $2.0 billion in June, in contrast to an increase of $3.6 billion in May.
Disposable personal income (DPI) -- personal income less personal current taxes -- increased $5.1 billion,
or less than 0.1 percent, in June, compared with an increase of $36.9 billion, or 0.3 percent, in May.

                                Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- decreased
$7.0 billion in June, in contrast to an increase of $4.6 billion in May.  PCE decreased $2.9
billion, in contrast to an increase of $8.6 billion.

Personal saving -- DPI less personal outlays -- was $725.9 billion in June, compared with $713.9 billion
in May.  Personal saving as a percentage of disposable personal income was 6.4 percent in June,
compared with 6.3 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 price index

Real DPI -- DPI adjusted to remove price changes -- increased 0.2 percent in June, compared with
an increase of 0.4 percent in May.

Real PCE -- PCE adjusted to remove price changes -- increased 0.1 percent in June, compared with
an increase of 0.2 percent in May. Purchases of durable goods increased 0.4 percent, in contrast to a
decrease of less than 0.1 percent.  Purchases of nondurable goods increased 0.1 percent, in contrast
to a decrease of 0.2 percent. Purchases of services increased 0.1 percent, compared with an increase
of 0.3 percent.

PCE price index -- The price index for PCE decreased 0.1 percent in June, the same decrease as in May.
The PCE price index, excluding food and energy, increased less than 0.1 percent in June, compared with an
increase of 0.1 percent in May.

                                Revisions of the Personal Income and Outlays Estimates

Personal income, personal outlays, DPI, and personal saving are revised, beginning with January 2007,
to reflect the results of the annual revision of the national income and products accounts (NIPAs)
released last week.  Annual revisions, which are usually released in July, incorporate source data
that are more complete, more detailed, and otherwise more reliable than those previously published.

Revised annual estimates of personal income and outlays for 2007-2009, 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 all 3 years:  $18.2 billion, or 0.2 percent, for 2007; $152.3 billion,
or 1.2 percent, for 2008; and $155.9 billion, or 1.3 percent, for 2009.  For 2007, upward revisions to
personal dividend income and to wages and salaries were partly offset by a downward revision to supplements
to wages and salaries.  For 2008, upward revisions to personal dividend income, to wages and salaries, to
rental income of persons, and to supplements to wages and salaries were partly offset by a downward revision
to nonfarm proprietors’ income.  For 2009, upward revisions to personal dividend income, to supplements
to wages and salaries, and to government social benefits to persons were partly offset by downward revisions
to nonfarm proprietors’ income and to personal interest income.

Disposable personal income (DPI) was revised up for all 3 years:  $20.5 billion, or 0.2 percent, for
2007;  $146.5 billion, or 1.4 percent, for 2008; and $117.6 billion, or 1.1 percent, for 2009.  Personal
current taxes was revised down $2.2 billion for 2007, was revised up $5.8 billion for 2008, and was revised
up $38.3 billion for 2009.  The percent change from the preceding year in real DPI was revised up
from 2.2 percent to 2.3 percent for 2007, was revised up from 0.5 percent to 1.7 percent for 2008,
and was revised down from 0.8 percent to 0.6 percent for 2009.

Personal outlays was revised down for all 3 years:  $15.4 billion for 2007, $15.0 billion for 2008, and
$79.1 billion for 2009.  For all 3 years, downward revisions to PCE more than accounted for the revision
to personal outlays.

The personal saving rate (personal saving as a percentage of DPI) was revised up for all 3 years: from
1.7 percent to 2.1 percent for 2007, from 2.7 percent to 4.1 percent for 2008, and from 4.2 percent
to 5.9 percent for 2009.

NOTE. -- BEA acknowledges the special efforts by the Bureau of Labor Statistics with the assistance
of 16 state employment offices in providing preliminary data for the first quarter of 2010 from the
quarterly census of employment and wages.  Wage and salary data from the state employment offices of
California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Kansas, Massachusetts,
Missouri, North Carolina, New Jersey, New York, Ohio, Pennsylvania, and Texas were provided.
These data should greatly improve the estimates of wages and salaries.

                                Annual Revision of the National Income and Product Accounts

The estimates released today reflect the results of the annual revision of the national income
and product accounts, beginning with the estimates for January 2007.  Annual revisions, which are usually
released in July, incorporate source data that are more complete, more detailed, and otherwise more
reliable than those previously available.  This release includes revised estimates of monthly
personal income, disposable personal income, and outlays and provides an overview of the effects of the revision.

The August 2010 Survey will contain NIPA tables and an article describing the revisions.
The revised estimates will be available on BEA’s Web site at www.bea.gov.

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 30, 2010 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.