Home > News Release: Personal Income and Outlays, October 2010
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, WEDNESDAY, NOVEMBER 24, 2010
BEA 10-55


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, October 2010
Personal income increased $57.6 billion, or 0.5 percent, and disposable personal income (DPI)
increased $48.3 billion, or 0.4 percent, in October, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $44.0 billion, or 0.4 percent.  In September,
personal income decreased $2.8 billion, or less than 0.1 percent, DPI decreased $8.6 billion, or
0.1 percent, and PCE increased $26.9 billion, or 0.3 percent, based on revised estimates.

Real disposable income increased 0.3 percent in October, in contrast to a decrease of 0.2 percent in
September.  Real PCE increased 0.3 percent, compared with an increase of 0.2 percent.

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

This news release also presents revised estimates of wages and salaries, personal taxes, and contributions
for government social insurance for April through June 2010 (second quarter).  These estimates reflect newly
available second-quarter wage and salary tabulations from the quarterly census of employment and wages from
the Bureau of Labor Statistics.

                                Wages and salaries

Private wage and salary disbursements increased $33.2 billion in October, compared with an increase of
$8.0 billion in September.  Goods-producing industries' payrolls increased $5.5 billion, in contrast to
a decrease of $0.1 billion; manufacturing payrolls increased $3.4 billion, in contrast to a decrease of
$0.1 billion.  Services-producing industries' payrolls increased $27.6 billion, compared with an increase
of $8.2 billion.  Government wage and salary disbursements increased $2.5 billion, in contrast to a decrease
of $4.6 billion.

                                Other personal income

Supplements to wages and salaries increased $5.1 billion in October, compared with an increase of $2.8 billion in September.

Proprietors' income increased $9.9 billion in October, compared with an increase of $4.9 billion in September.  Farm
proprietors' income increased $5.3 billion, compared with an increase of $3.6 billion.  Nonfarm proprietors' income
increased $4.5 billion, compared with an increase of $1.3 billion.

Rental income of persons increased $1.6 billion in October, compared with an increase of $3.5 billion in September.
Personal income receipts on assets (personal interest income plus personal dividend income) increased $6.9 billion,
in contrast to a decrease of $4.9 billion.  Personal current transfer receipts increased $3.3 billion, in contrast
to a decrease of $12.1 billion.

Contributions for government social insurance -- a subtraction in calculating personal income --  increased
$4.7 billion in October, compared with an increase of $0.6 billion in September.

                                Personal current taxes and disposable personal income

Personal current taxes increased $9.4 billion in October, compared with an increase of $5.7 billion in September.
Disposable personal income (DPI) -- personal income less personal current taxes -- increased $48.3 billion, or
0.4 percent, in October, in contrast to a decrease of $8.6 billion, or 0.1 percent in September.

                                Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased
$43.0 billion in October, compared with an increase of $23.5 billion in September.  PCE increased
$44.0 billion, compared with an increase of $26.9 billion.

Personal saving -- DPI less personal outlays -- was $651.1 billion in October, compared with $645.8 billion
in September.  Personal saving as a percentage of disposable personal income was 5.7 percent in October,
compared with 5.6 percent in September.  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 0.3 percent in October, in contrast to a decrease
of 0.2 percent in September.

Real PCE -- PCE adjusted to remove price changes -- increased 0.3 percent in October, compared with an increase
of 0.2 percent in September.  Purchases of durable goods increased 2.2 percent, compared with an increase of
1.7 percent.  Purchases of motor vehicles and parts accounted for most of the increases in October and in September.
Purchases of nondurable goods increased 0.2 percent in October, in contrast to a decrease of 0.2 percent
in September.  Purchases of services decreased less than 0.1 percent in October, in contrast to an
increase of 0.1 percent in September.

PCE price index -- The price index for PCE increased 0.2 percent in October, compared with an increase of 0.1 percent
in September.  The PCE price index, excluding food and energy, increased less than 0.1 percent in both October
and September.

                                Revisions

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

Estimates of wages and salaries were revised April through September.  The revisions to second-quarter wages
and salaries reflect the incorporation of BLS tabulations of second-quarter wages and salaries from the quarterly
census of employment and wages.  Revised estimates for July, August, and September reflect extrapolations from
the revised second-quarter level of wages.  In addition, revisions for August and September reflect revised BLS
employment, hours, and earnings data.

                                                                Change from preceding month
                                        August                                    September
                                        Previous   Revised   Previous   Revised   Previous   Revised   Previous   Revised
                                       (Billions of dollars)      (Percent)      (Billions of dollars)      (Percent)
Personal Income:
 Current dollars                        54.4       62.3      0.4        0.5      -16.8       -2.8     -0.1        0.0
Disposable personal income:
 Current dollars                        47.9       53.8      0.4        0.5      -20.3       -8.6     -0.2       -0.1
 Chained (2005) dollars                 23.5       28.6      0.2        0.3      -26.7      -17.7     -0.3       -0.2
Personal consumption expenditures:
 Current dollars                        52.5       54.5      0.5        0.5       17.3       26.9      0.2        0.3
 Chained (2005) dollars                 29.3       31.0      0.3        0.3        7.9       15.1      0.1        0.2

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 – December 23, 2010, at 8:30 A.M. EST for Personal Income and Outlays for November.

                                Release dates in 2011

December 2010....January 31              April 2011...May 27           August 2011......September 30
January 2011.....February 28             May 2011.....June 27          September 2011...October 28
February 2011....March 28                June 2011....August 2         October 2011.....November 23
March 2011.......April 29                July 2011....August 29        November 2011....December 23
________________________
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.