EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, FRIDAY, NOVEMBER 30, 2012
BEA 12-54


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James Rankin: (202) 606-5301 (Personal Income) piniwd@bea.gov
Kyle Brown: (202) 606-5302 (Personal Consumption Expenditures) pce@bea.gov
PERSONAL INCOME AND OUTLAYS, OCTOBER 2012
Personal income increased $0.4 billion, or less than 0.1 percent, and disposable personal income
(DPI) increased $0.8 billion, or less than 0.1 percent, in October, according to the Bureau of Economic
Analysis.  Personal consumption expenditures (PCE) decreased $20.2 billion, or 0.2 percent.  In
September, personal income increased $47.8 billion, or 0.4 percent, DPI increased $42.1 billion, or 0.4
percent, and PCE increased $84.0 billion, or 0.8 percent, based on revised estimates.

Real disposable income decreased 0.1 percent in October, compared with an increase of less than 0.1
percent in September.  Real PCE decreased 0.3 percent, in contrast to an increase of 0.4 percent.

                                        2012
                                        June            July            Aug.            Sept.           Oct.
                                                       (Percent change from preceding month)
Personal income, current dollars        0.3             0.1             0.1             0.4             0.0
Disposable personal income:
 Current dollars                        0.2             0.1             0.1             0.4             0.0
 Chained (2005) dollars                 0.2             0.1            -0.3             0.0            -0.1
Personal consumption expenditures:
 Current dollars                        0.0             0.3             0.3             0.8            -0.2
 Chained (2005) dollars                -0.1             0.3             0.0             0.4            -0.3

FOOTNOTE.___________
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.
____________

The October estimates of personal income and outlays reflect the effects of Hurricane Sandy, which made
landfall in the United States on October 29.  The storm affected 24 states, with particularly severe damage
in New York and New Jersey.  BEA cannot quantify the total impact of the storm on personal income and
outlays because most of the source data used to estimate these components reflect the effects of the
storm and cannot be separately identified.  However, BEA did make adjustments where source data were
not yet available or did not reflect the effects of Sandy.  The largest of these adjustments was for
work interruptions, which reduced wages and salaries by about $18 billion (at an annual rate).

                                Wages and salaries

Private wage and salary disbursements decreased $17.1 billion in October, in contrast to an increase
of $22.4 billion in September.  The October decrease in private wages and salaries reflected work
interruptions caused by Hurricane Sandy, which reduced wages and salaries by $18.2 billion at an
annual rate.  Goods-producing industries' payrolls decreased $3.6 billion in October, in contrast
to an increase of $3.9 billion in September; manufacturing payrolls decreased $2.1 billion, in
contrast to an increase of $1.8 billion.  Services-producing industries' payrolls decreased
$13.5 billion, in contrast to an increase of $18.3 billion.  Government wage and salary
disbursements increased $0.1 billion, compared with an increase of $1.7 billion.

                                Other personal income

Supplements to wages and salaries increased $1.6 billion in October, compared with an increase of $4.6 billion in September.

Proprietors' income decreased $2.1 billion in October, in contrast to an increase of $11.6 billion in September.
Farm proprietors' income decreased $1.9 billion, in contrast to an increase of $3.2 billion.  Nonfarm proprietors'
income decreased $0.2 billion, in contrast to an increase of $8.4 billion.

Rental income of persons increased $5.5 billion in October, compared with an increase of $9.0 billion in September.
Personal income receipts on assets (personal interest income plus personal dividend income) increased $17.2 billion,
in contrast to a decrease of $12.2 billion.

Personal current transfer receipts decreased $6.7 billion, in contrast to an increase of $13.6 billion.
Within current transfer receipts, government social benefits to persons for social security benefits
decreased $10.3 billion in October, in contrast to an increase of $13.9 billion in September.

Contributions for government social insurance -- a subtraction in calculating personal income -- decreased
$1.9 billion in October, in contrast to an increase of $2.9 billion in September.

                                Personal current taxes and disposable personal income

Personal current taxes decreased $0.3 billion in October, in contrast to an increase of $5.7 billion in September.
Disposable personal income (DPI) -- personal income less personal current taxes -- increased $0.8 billion, or
less than 0.1 percent, in October, compared with an increase of $42.1 billion, or 0.4 percent, in September.

                                Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- decreased
$18.0 billion in October, in contrast to an increase of $87.3 billion in September.  PCE decreased
$20.2 billion, in contrast to an increase of $84.0 billion.

Personal saving -- DPI less personal outlays -- was $410.1 billion in October, compared with $391.3 billion
in September.  The personal saving rate -- personal saving as a percentage of disposable personal income -- was
3.4 percent in October, compared with 3.3 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 -- decreased 0.1 percent in October, in contrast to an
increase of less than 0.1 percent in September.

Real PCE -- PCE adjusted to remove price changes -- decreased 0.3 percent in October, in contrast to an
increase of 0.4 percent in September.  Purchases of durable goods decreased 1.7 percent, in contrast to an
increase of 2.2 percent.  Purchases of motor vehicles and parts accounted for most of the decrease in October.
Purchases of nondurable goods decreased 0.3 percent in October, in contrast to an increase of 0.3 percent
in September.  Purchases of services decreased 0.1 percent, in contrast to an increase of 0.2 percent.

The price index for PCE increased 0.1 percent in October, compared with an increase of 0.3 percent in September.
The PCE price index, excluding food and energy, increased 0.1 percent in October, the same increase as in September.

                                Revisions

The revisions to second-quarter estimates of  wages and salaries, personal taxes, and contributions for government
social insurance reflect the incorporation of newly available second-quarter wage and salary tabulations from
the quarterly census of employment and wages (QCEW) from the Bureau of Labor Statistics.

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

Estimates for personal income and DPI 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.

                                                                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                            17.8      11.2        0.1       0.1       48.1      47.8        0.4       0.4
Disposable personal income:
 Current dollars                            15.1       9.4        0.1       0.1       43.0      42.1        0.4       0.4
 Chained (2005) dollars                    -28.6     -28.2       -0.3      -0.3       -2.3       2.2        0.0       0.0
Personal consumption expenditures:
 Current dollars                            59.9      35.6        0.5       0.3       87.9      84.0        0.8       0.8
 Chained (2005) dollars                     12.8      -3.2        0.1       0.0       38.9      40.5        0.4       0.4

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 21, 2012 at 8:30 A.M. EST for Personal Income and Outlays for November


Release Dates for 2013

December 2012.. January 31              April 2013..May 31                      August 2013.....September 27
January 2013... March 1                 May 2013....June 27                     September 2013..October 31
February 2013.. March 29                June 2013...August 2                    October 2013....November 27
March 2013..... April 29                July 2013...August 30                   November 2013...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.