EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, THURSDAY, JANUARY 31, 2013
BEA 13-03


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James Rankin: (202) 606-5301 (Personal Income) piniwd@bea.gov
Harvey Davis: (202) 606-5302 (Personal Consumption Expenditures) pce@bea.gov
PERSONAL INCOME AND OUTLAYS, DECEMBER 2012
Personal income increased $352.4 billion, or 2.6 percent, and disposable personal income (DPI)
increased $331.3 billion, or 2.7 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 $135.8 billion, or 1.0 percent, DPI increased $125.5 billion, or 1.0 percent,
and PCE increased $41.6 billion, or 0.4 percent, based on revised estimates.

Real disposable income increased 2.8 percent in December, compared with an increase of 1.3
percent in November.  Real PCE increased 0.2 percent, compared with an increase of 0.6 percent.

                                        2012
                                        Aug.            Sept.           Oct.            Nov.            Dec.
                                                       (Percent change from preceding month)
Personal income, current dollars        0.1             0.4             0.1             1.0             2.6
Disposable personal income:
 Current dollars                        0.1             0.4             0.1             1.0             2.7
 Chained (2005) dollars                -0.3             0.1            -0.1             1.3             2.8
Personal consumption expenditures:
 Current dollars                        0.3             0.8            -0.1             0.4             0.2
 Chained (2005) dollars                 0.0             0.5            -0.2             0.6             0.2

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 BEAs Web site at www.bea.gov/newsreleases/rels.htm.
____________

Personal income in November and December was boosted by accelerated and special dividend payments
to persons and by accelerated bonus payments and other irregular pay in private wages and salaries
in anticipation of changes in individual income tax rates.  Personal income in December was also
boosted by lump-sum social security benefit payments.  In October, personal income reflected work
interruptions caused by Hurricane Sandy.  Excluding these special factors, discussed more fully below,
DPI increased $44.1 billion, or 0.4 percent, in December, following an increase of $66.5 billion,
or 0.6 percent, in November.

                                Wages and salaries

Private wage and salary disbursements increased $44.0 billion in December, compared with an
increase of $61.4 billion in November.  Private wages and salaries was boosted by $30.0
billion (at an annual rate) in December and by $15.0 billion (at an annual rate) in November for
accelerated payments of bonuses or other types of irregular pay.  This type of irregular payment
is not accounted for in the primary monthly source data for wages and salaries.  In October, work
interruptions caused by Hurricane Sandy reduced wages and salaries by $18.2 billion (at an annual rate).
Goods-producing industries' payrolls increased $8.4 billion in December, compared with an increase
of $7.5 billion in November; manufacturing payrolls increased $4.8 billion, compared with an
increase of $5.2 billion.  Services-producing industries' payrolls increased $35.6 billion,
compared with an increase of $53.9 billion.  Government wage and salary disbursements
increased $0.9 billion, compared with an increase of $0.1 billion.

                                Other personal income

Supplements to wages and salaries increased $6.4 billion in December, compared with an
increase of $7.1 billion in November.

Proprietors' income increased $9.3 billion in December, compared with an increase
of $12.2 billion in November.  Farm proprietors' income increased $1.0 billion, compared
with an increase of $1.1 billion.  Nonfarm proprietors' income increased $8.2 billion,
compared with an increase of $11.2 billion.

Rental income of persons increased $2.0 billion in December, compared with an increase
of $3.7 billion in November.  Personal income receipts on assets (personal interest income
plus personal dividend income) increased $286.6 billion, compared with an increase of $51.8 billion.
Personal dividend income was boosted by $291.0 billion (at an annual rate) in December and
by $25.8 billion (at an annual rate) in November, which reflected accelerated and special
dividend payments in anticipation of changes in individual income tax rates.  For additional
information, see FAQ on How would special and accelerated dividends affect the national
income and product accounts in the fourth quarter 2012? at www.bea.gov.

Personal current transfer receipts increased $8.9 billion in December, compared with an
increase of $6.9 billion in November.  Within personal current transfer receipts in December,
government social benefits to persons included retroactive social security benefit payments
of $7.0 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 $5.6 billion in December, compared with an increase of $7.5 billion in November.

                                Personal current taxes and disposable personal income

Personal current taxes increased $21.1 billion in December, compared with an increase
of $10.3 billion in November.  Disposable personal income (DPI) -- personal income
less personal current taxes -- increased $331.3 billion, or 2.7 percent, in December,
compared with an increase of $125.5 billion, or 1.0 percent, in November.

                                Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased
$21.0 billion inDecember, compared with an increase of $40.2 billion in November.  PCE increased $22.6
billion, compared with an increase of $41.6 billion.

Personal saving -- DPI less personal outlays -- was $805.2 billion in December, compared with $495.0 billion
in November.  The personal saving rate -- personal saving as a percentage of disposable personal
income -- was 6.5 percent in December, compared with 4.1 percent in November.  For a comparison of
personal saving in BEAs national income and product accounts with personal saving in the Federal
Reserve Boards flow of funds accounts and data on changes in net worth, go to
www.bea.gov/national/nipaweb/Nipa-Frb.asp.

                                Real DPI, real PCE and price index

Real DPI -- DPI adjusted to remove price changes -- increased 2.8 percent in December, compared with an increase of 1.3
percent in November.

Real PCE -- PCE adjusted to remove price changes -- increased 0.2 percent in December, compared with an increase of 0.6
percent in November.  Purchases of durable goods increased 1.3 percent, compared with an increase of 2.9 percent.
Purchases of motor vehicles and parts accounted for about half of the increases in December and in November.
Purchases of nondurable goods increased 0.3 percent in December, compared with an increase of 0.1 percent in November.
Purchases of services increased 0.1 percent, compared with an increase of 0.4 percent.

PCE price index -- The price index for PCE decreased less than 0.1 percent in December, compared with a decrease of
0.2 percent in November.  The PCE price index, excluding food and energy, increased less than 0.1 percent in
December, the same increase as in November.

                                2012 Personal Income and Outlays

Personal income increased 3.5 percent in 2012 (that is, from the 2011 annual level to the 2012 annual level),
compared with an increase of 5.1 percent in 2011.  DPI increased 3.3 percent, compared with an increase
of 3.8 percent.  PCE increased 3.6 percent, compared with an increase of 5.0 percent.

Real DPI increased 1.5 percent in 2012, compared with an increase of 1.3 percent in 2011.  Real PCE
increased 1.9 percent, compared with an increase of 2.5 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                           7.5       8.6        0.1       0.1       85.8      135.8       0.6       1.0
Disposable personal income:
 Current dollars                           6.4       6.3        0.1       0.1       74.7      125.5       0.6       1.0
 Chained (2005) dollars                   -7.2      -8.5       -0.1      -0.1       86.5      129.7       0.8       1.3
Personal consumption expenditures:
 Current dollars                          -6.6      -9.6       -0.1      -0.1       41.3       41.6       0.4       0.4
 Chained (2005) dollars                  -17.5     -21.3       -0.2      -0.2       56.3       56.2       0.6       0.6

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 2010 through December 2012.  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/iTable/index_nipa.cfm.

BEAs 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, 2013 at 8:30 A.M. EST for Personal Income and Outlays for January

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
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