Home > News Release: Personal Income and Outlays, December 2009
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, MONDAY, FEBRUARY 1, 2010
BEA 10-03


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PERSONAL INCOME AND OUTLAYS: DECEMBER 2009
Personal income increased $44.5 billion, or 0.4 percent, and disposable personal income (DPI)
increased $45.9 billion, or 0.4 percent, in December, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $22.6 billion, or 0.2 percent.  In November,
personal income increased $61.1 billion, or 0.5 percent, DPI increased $60.7 billion, or 0.5
percent, and PCE increased $69.1 billion, or 0.7 percent, based on revised estimates.


Real disposable income increased 0.3 percent in December, the same increase as in November.  Real
PCE increased 0.1 percent in December, compared with an increase of 0.4 percent in November.

                                        2009
                                        Aug.            Sept.           Oct.            Nov.            Dec.
                                                       (Percent change from preceding month)
Personal income, current dollars        0.3             0.3             0.3             0.5             0.4
Disposable personal income:
 Current dollars                        0.3             0.3             0.4             0.5             0.4
 Chained (2005) dollars                 0.0             0.2             0.1             0.3             0.3
Personal consumption expenditures:
 Current dollars                        1.3            -0.6             0.6             0.7             0.2
 Chained (2005) dollars                 1.0            -0.7             0.3             0.4             0.1

                                Wages and salaries

Private wage and salary disbursements increased $6.3 billion in December, compared with an increase
of $25.1 billion in November.  Goods-producing industries' payrolls decreased $5.2 billion, in contrast
to an increase of $2.9 billion; manufacturing payrolls decreased $2.2 billion, in contrast to an
increase of $3.5 billion.  Services-producing industries' payrolls increased $11.5 billion, compared
with an increase of $22.3 billion.  Government wage and salary disbursements increased $2.9 billion,
compared with an increase of $1.8 billion.

                                Other personal income

Supplements to wages and salaries increased $1.3 billion in December, compared with an increase
of $2.9 billion in November.

Proprietors' income increased $8.9 billion in December, compared with an increase of $12.8 billion
in November.  Farm proprietors' income increased $7.0 billion, the same increase as in November.
Nonfarm proprietors' income increased $1.9 billion in December, compared with an increase of $5.9 billion in November.

Rental income of persons increased $2.0 billion in December, the same increase as in November.
Personal income receipts on assets (personal interest income plus personal dividend income)
increased $10.1 billion, the same increase as in November.

Personal current transfer receipts increased $14.0 billion in December, compared with an increase
of $9.8 billion in November.  The December increase in personal current transfer receipts reflected
retroactive social security benefits payments of $8.5 billion at an annual rate, resulting from
a recalculation of the earnings base underlying the benefits of recent retirees.

Contributions for government social insurance -- a subtraction in calculating personal income --
increased $0.8 billion in December, compared with an increase of $3.6 billion in November.

                                Personal current taxes and disposable personal income

Personal current taxes decreased $1.4 billion in December, in contrast to an increase
of $0.3 billion in November.  Disposable personal income (DPI) -- personal income less personal
current taxes -- increased $45.9 billion, or 0.4 percent, in December, compared with an increase
of $60.7 billion, or 0.5 percent, in November.

                                Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased
18.0 billion in December, compared with an increase of $64.5 billion in November.  PCE increased
$22.6 billion, compared with an increase of $69.1 billion.

Personal saving -- DPI less personal outlays -- was $534.2 billion in December, compared with $506.3 billion in
November.  Personal saving as a percentage of disposable personal income was 4.8 percent in December, compared with
4.5 percent in November.  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 -- increased 0.3 percent in December, the same increase
as in November.

Real PCE -- PCE adjusted to remove price changes -- increased 0.1 percent in December, compared with an
increase of 0.4 percent in November.  Purchases of durable goods increased 0.2 percent, compared with an
increase of 2.3 percent.  Purchases of nondurable goods decreased 0.8 percent, in contrast to an
increase of 1.0 percent.  Purchases of services increased 0.4 percent, in contrast to a decrease of
less than 0.1 percent.

PCE price index -- The price index for PCE increased 0.1 percent in December, compared with an
increase of 0.3 percent in November.  The PCE price index excluding food and energy increased 0.1 percent,
compared to an increase of less than 0.1 percent.

                                Revisions

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

                                                                Change from preceding month
                                        October                                   November
                                        Previous   Revised   Previous   Revised   Previous   Revised   Previous   Revised
                                       (Billions of dollars)      (Percent)      (Billions of dollars)      (Percent)
Personal Income:
 Current dollars                        33.6       31.0      0.3        0.3       49.7       61.1      0.4        0.5
Disposable personal income:
 Current Dollars                        50.2       41.8      0.5        0.4       54.1       60.7      0.5        0.5
 Chained (2005) dollars                 20.4        9.7      0.2        0.1       24.1       29.2      0.2        0.3
Personal consumption expenditures:
 Current dollars                        63.5       64.1      0.6        0.6       47.9       69.1      0.5        0.7
 Chained (2005) dollars                 34.5       32.3      0.4        0.3       20.4       38.8      0.2        0.4

This release includes revised estimates of population, per capita disposable personal income (DPI), and per
capita real DPI.  The revised population estimates reflect newly available estimates from the Census Bureau
for April 2000 through December 2009.  BEA population estimates are a mid-month average of Census Bureau
data.  The revised per capita estimates reflect the revisions to the population estimates.  Estimates for
the complete revision period are available on BEA's Web site at
www.bea.gov/national/nipaweb/SelectTable.asp?Selected=Y#S2.

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 – March 1, 2010 at 8:30 A.M. EST for Personal Income and Outlays for January.

Release Dates for 2010

December 2009...February 1     April 2010...May 28        August 2010.....October 1
January 2010....March 1        May 2010.....June 28       September 2010..November 1
February 2010...March 29       June 2010....August 3      October 2010....November 24
March 2010......May 3          July 2010....August 30     November 2010...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.

This news release is available on BEA’s Web site at www.bea.gov/newsreleases/rels.htm.