Home > News Release: Personal Income and Outlays, September 2010
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, MONDAY, NOVEMBER 1, 2010
BEA 10-51


James Rankin: (202) 606-5301 (Personal Income) piniwd@bea.gov
Kyle Brown: (202) 606-5302 (Personal Consumption Expenditures) pce@bea.gov

* 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, September 2010
Personal income decreased $16.8 billion, or 0.1 percent, and disposable personal income (DPI)
decreased $20.3 billion, or 0.2 percent, in September, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $17.3 billion, or 0.2 percent.  In August,
personal income increased $54.4 billion, or 0.4 percent, DPI increased $47.9 billion, or 0.4 percent,
and PCE increased $52.5 billion, or 0.5 percent, based on revised estimates.

Real disposable income decreased 0.3 percent in September, in contrast to an increase of 0.2
percent in August.  Real PCE increased 0.1 percent, compared with an increase of 0.3 percent.

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

The September change in personal income reflects provisions of unemployment compensation legislation,
which had boosted emergency government unemployment benefits (within current transfer receipts) in August.
Excluding emergency government unemployment insurance benefits, which are discussed more fully below,
personal income increased $8.7 billion, or 0.1 percent, in September, following an increase of $33.9 billion,
or 0.3 percent, in August.

                                Wages and salaries

Private wage and salary disbursements increased $3.3 billion in September, compared with an increase of
$23.6 billion in August.  Goods-producing industries' payrolls decreased $1.6 billion, in contrast to an
increase of $6.7 billion; manufacturing payrolls decreased $1.0 billion, in contrast to an increase of
$2.3 billion.  Services-producing industries' payrolls increased $5.0 billion, compared with an increase
of $16.8 billion.  Government wage and salary disbursements decreased $4.8 billion, compared with a decrease
of $8.2 billion.

                                Other personal income

Supplements to wages and salaries increased $2.4 billion in September, compared with an increase of
$4.2 billion in August.

Proprietors' income increased $5.6 billion in September, compared with an increase of $10.5 billion
in August.  Farm proprietors' income increased $4.8 billion, the same increase as in August.  Nonfarm
proprietors' income increased $0.9 billion in September, compared with an increase of $5.7 billion in August.

Rental income of persons increased $3.7 billion in September, compared with an increase of $3.1 billion
in August.  Personal income receipts on assets (personal interest income plus personal dividend income)
decreased $5.7 billion, compared with a decrease of $10.7 billion.

Personal current transfer receipts decreased $21.5 billion in September, in contrast to an increase of
$35.1 billion in August.  The September change reflected the effects of unemployment compensation legislation,
which reduced emergency unemployment insurance benefits by $25.5 billion at an annual rate in September,
after boosting benefits by $20.5 billion in August.

Contributions for government social insurance -- a subtraction in calculating personal income -- decreased
$0.1 billion in September, in contrast to an increase of $3.0 billion in August.

                                Personal current taxes and disposable personal income

Personal current taxes increased $3.5 billion in September, compared with an increase of $6.5 billion
in August.  Disposable personal income (DPI) -- personal income less personal current taxes -- decreased
$20.3 billion, or 0.2 percent, in September, in contrast to an increase of $47.9 billion, or 0.4 percent in August.

                                Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased
$14.1 billion in September, compared with an increase of $49.2 billion in August.  PCE increased
$17.3 billion, compared with an increase of $52.5 billion.

Personal saving -- DPI less personal outlays -- was $607.6 billion in September, compared with $642.0 billion
in August.  Personal saving as a percentage of disposable personal income was 5.3 percent in
September, compared with 5.6 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 0.3 percent in September, in contrast to an
increase of 0.2 percent in August.

Real PCE -- PCE adjusted to remove price changes -- increased 0.1 percent in September, compared with an
increase of 0.3 percent in August.  Purchases of durable goods increased 0.8 percent, compared with an
increase of less than 0.1 percent.  Purchases of nondurable goods decreased 0.2 percent, in contrast to
an increase of 0.8 percent. 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 0.2 percent in August.  The PCE price index, excluding food and energy, increased less than 0.1
percent, compared with an increase of 0.1 percent.

                                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                        22.0       19.1      0.2        0.2       59.3       54.4      0.5        0.4
Disposable personal income:
 Current dollars                         5.7        2.2      0.0        0.0       52.0       47.9      0.5        0.4
 Chained (2005) dollars                -17.8      -19.4     -0.2       -0.2       22.9       23.5      0.2        0.2
Personal consumption expenditures:
 Current dollars                        41.4       47.1      0.4        0.5       41.3       52.5      0.4        0.5
 Chained (2005) dollars                 16.5       23.1      0.2        0.2       15.4       29.3      0.2        0.3

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 24, 2010, at 8:30 A.M. EST for Personal Income and Outlays for October.

                                        -more-
______________________
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.