EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, JUNE 29, 2012
BEA 12-30


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, MAY 2012
Personal income increased $25.4 billion, or 0.2 percent, and disposable personal income (DPI)
increased $18.5 billion, or 0.2 percent, in May, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) decreased $4.7 billion, or less than 0.1 percent.  In April,
personal income increased $29.4 billion, or 0.2 percent, DPI increased $19.5 billion, or 0.2 percent,
and PCE increased $16.2 billion, or 0.1 percent, based on revised estimates.

Real disposable income increased 0.3 percent in May, compared with an increase of 0.1 percent
 in April.  Real PCE increased 0.1 percent in May, the same increase as in April.

                                        2012
                                        Jan.            Feb.            Mar.            Apr.            May
                                                       (Percent change from preceding month)
Personal income, current dollars        0.4             0.4             0.4             0.2             0.2
Disposable personal income:
 Current dollars                        0.3             0.4             0.4             0.2             0.2
 Chained (2005) dollars                 0.0             0.0             0.2             0.1             0.3
Personal consumption expenditures:
 Current dollars                        0.4             1.0             0.1             0.1             0.0
 Chained (2005) dollars                 0.2             0.6            -0.2             0.1             0.1

                                Wages and salaries

Private wage and salary disbursements increased $1.1 billion in May, compared with an increase
of $5.3 billion in April.  Goods-producing industries' payrolls decreased $7.0 billion, in contrast
to an increase of $5.6 billion; manufacturing payrolls decreased $4.5 billion, in contrast to an
increase of $3.2 billion.  Services-producing industries' payrolls increased $8.3 billion, in contrast
to a decrease of $0.4 billion.  Government wage and salary disbursements increased $0.3 billion,
compared with an increase of $0.4 billion.

                                Other personal income

Supplements to wages and salaries increased $1.6 billion in May, compared with an increase of $2.0 billion in April.

Proprietors' income increased $4.9 billion in May, compared with an increase of $3.2 billion in April.
Farm proprietors' income increased $1.5 billion, compared with an increase of $1.6 billion.  Nonfarm proprietors' income
increased $3.3 billion, compared with an increase of $1.7 billion.

Rental income of persons increased $4.1 billion in May, compared with an increase of $3.8 billion in April.
Personal income receipts on assets (personal interest income plus personal dividend income) increased $12.7 billion,
compared with an increase of $16.4 billion.  Personal current transfer receipts increased $1.2 billion, in
contrast to a decrease of $0.8 billion.

Contributions for government social insurance -- a subtraction in calculating personal income -- increased $0.4 billion
in May, compared with an increase of $0.8 billion in April.

                                Personal current taxes and disposable personal income

Personal current taxes increased $6.9 billion in May, compared with an increase of $9.9 billion in April.
Disposable personal income (DPI) -- personal income less personal current taxes -- increased $18.5 billion,
or 0.2 percent, in May, compared with an increase of $19.5 billion, or 0.2 percent, in April.

                                Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- decreased
$7.0 billion in May, in contrast to an increase of $13.9 billion in April.  PCE decreased $4.7 billion,
in contrast to an increase of $16.2 billion.

Personal saving -- DPI less personal outlays -- was $464.3 billion in May, compared with $438.8 billion
in April.  The personal saving rate -- personal saving as a percentage of disposable personal income -- was
3.9 percent in May, compared with 3.7 percent in April.  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 May, compared with an
increase of 0.1 percent in April.

Real PCE -- PCE adjusted to remove price changes -- increased 0.1 percent in May, the same increase
as in April.  Purchases of durable goods decreased 0.4 percent, compared with a decrease of 0.1 percent.
Purchases of nondurable goods increased 0.3 percent, compared with an increase of 0.1 percent.
Purchases of services increased 0.2 percent in May, the same increase as in April.

PCE price index -- The price index for PCE decreased 0.2 percent in May, compared with an increase of
less than 0.1 percent in April.  The PCE price index, excluding food and energy, increased 0.1 percent in
May, the same increase as in April.

                                Revisions

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

                                                                Change from preceding month
                                        March                                     April
                                        Previous   Revised   Previous   Revised   Previous   Revised   Previous   Revised
                                       (Billions of dollars)      (Percent)      (Billions of dollars)      (Percent)
Personal income:
 Current dollars                        52.2       53.8      0.4        0.4       31.7       29.4      0.2        0.2
Disposable personal income:
 Current dollars                        45.9       48.0      0.4        0.4       22.0       19.5      0.2        0.2
 Chained (2005) dollars                 19.2       17.2      0.2        0.2       17.4       14.6      0.2        0.1
Personal consumption expenditures:
 Current dollars                        25.4        8.2      0.2        0.1       31.8       16.2      0.3        0.1
 Chained (2005) dollars                  2.6      -15.5      0.0       -0.2       26.1       11.8      0.3        0.1

                                Annual Revision of the National Income and Product Accounts

As part of the annual revision of the national income and product accounts (NIPAs), revised estimates of personal
income and outlays covering January 2009 through May 2012 will be released along with estimates for June 2012 on
July 31.  The August Survey of Current Business will contain an article that describes the annual revision in detail.

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 - July 31, 2012 at 8:30 A.M. EDT for Personal Income and Outlays for June
________________________
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.

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