EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, Tuesday, August 2, 2016
BEA 16—41


* 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.


Technical: James Rankin (301) 278-9087 (Personal Income) piniwd@bea.gov
  Kyle Brown (301) 278-9086 (PCE) pce@bea.gov
  Kurt Kunze (301) 278-9748 (Revisions) kurt.kunze@bea.gov
Media: Jeannine Aversa (301) 278-9003   jeannine.aversa@bea.gov
PERSONAL INCOME AND OUTLAYS, JUNE 2016
Personal income increased $29.3 billion (0.2 percent) in June according to estimates released today
by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $24.6 billion (0.2 percent)
and personal consumption expenditures (PCE) increased $53.0 billion (0.4 percent).

Real DPI increased 0.1 percent in June and Real PCE increased 0.3 percent. The PCE price index
increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.1 percent.

                                                                2016
                                                Feb     Mar     Apr     May     Jun
                                                Percent change from preceding month
Personal income:
 Current dollars                               -0.1     0.3     0.4     0.2     0.2
Disposable personal income:
 Current dollars                               -0.1     0.3     0.4     0.2     0.2
 Chained (2009) dollars                         0.0     0.2     0.1     0.0     0.1
Personal consumption expenditures (PCE):
 Current dollars                                0.2     0.0     1.0     0.4     0.4
 Chained (2009) dollars                         0.3     0.0     0.7     0.2     0.3
Price indexes:
 PCE                                           -0.1     0.1     0.3     0.2     0.1
 PCE, excluding food and energy                 0.2     0.1     0.2     0.2     0.1

                                                Percent change from month one year ago
Price indexes:
 PCE                                            0.9     0.8     1.0     0.9     0.9
 PCE, excluding food and energy                 1.7     1.6     1.6     1.6     1.6

The increase in personal income in June primarily reflected increases in private wages and salaries
and nonfarm proprietors’ income that were partly offset by decreases in personal dividend income
and personal interest income.

The increase in real PCE in June primarily reflected increases in spending for electricity and gas,
healthcare services, and other nondurable goods, that were partly offset by a decrease in spending
for new motor vehicles.

Personal outlays increased $58.3 billion in June. Personal saving was $732.0 billion in June and
the personal saving rate, personal saving as a percentage of disposable personal income, was 5.3 percent.

BOX._______________
                Annual Update of the National Income and Product Accounts

The estimates released today reflect the results of the annual update of the national income and
product accounts (NIPAs) in conjunction with preliminary estimates for June 2016.  The update covers
the most recent 3 years and the first 5 months of 2016.  For more information, see “Information on
the 2016 Annual Update” on BEA’s website. Additionally, the August Survey of Current Business will
contain an article that describes the results in detail
___________________

                                Revisions

Revisions to the personal income and outlays estimates reflect the results of the recent annual update
of the national income and product accounts (NIPAs). These updates, usually made each July, incorporate
newly available and more comprehensive source data, as well as improved estimation methodologies. This
year’s update covers the period January 2013 through May 2016.

Revisions to annual estimates of personal income and outlays for 2013 through 2015 are shown in Table 12.
Revised and previously published monthly estimates of personal income, DPI, PCE, personal saving as a
percentage of DPI, real DPI, and real PCE are shown in Table 13. Revised and previously published annual
and quarterly estimates are shown in Table 14.

Personal income was revised upward $5.3 billion, or less than 0.1 percent, for 2013, $115.5 billion,
or 0.8 percent, for 2014, and $107.8 billion, or 0.7 percent, for 2015.

* For 2013, revisions to personal income and its components were small.

* For 2014, upward revisions to personal dividend income, government social benefits to persons, and
  supplements to wages and salaries were partly offset by downward revisions to farm proprietors’ income
  and rental income of persons.

* For 2015, upward revisions to personal dividend income, wages and salaries, personal current transfer
  receipts, nonfarm proprietors’ income, and supplements to wages and salaries were partly offset by
  downward revisions to farm proprietors’ income and personal interest income.

DPI was revised upward $0.2 billion, or less than 0.1 percent, for 2013, $108.8 billion, or 0.8 percent,
for 2014, and $116.6 billion, or 0.9 percent, for 2015. The percent change from the preceding year in real
DPI was the same as previously published in 2013, decreasing 1.4 percent. It was revised upward from an
increase of 2.7 percent to an increase of 3.5 percent in 2014, and was the same as previously published
in 2015, increasing 3.5 percent.

Personal outlays was revised downward $30.0 billion, or 0.3 percent, for 2013. It was revised upward $3.0 billion,
or less than 0.1 percent, for 2014, and $18.7 billion, or 0.1 percent, for 2015. Revisions to personal outlays
primarily reflected revisions to PCE.

The personal saving rate was revised upward 0.2 percentage point from 4.8 percent to 5.0 percent in 2013,
0.8 percentage point from 4.8 percent to 5.6 percent in 2014, and 0.7 percentage point from 5.1 percent
to 5.8 percent in 2015.

BOX._______________
                QCEW Data Included in the First Quarter of 2016

BEA’s data on wages and salaries for the first quarter of 2016 were based on information from the District
of Columbia and 42 state employment offices, a much larger universe than in the past. BEA acknowledges the
special efforts by the Bureau of Labor Statistics with the assistance of state employment offices in providing
preliminary data from the Quarterly Census of Employment and Wages (QCEW).
___________________

                                                *       *       *

                                Next release:  August 29, 2016 at 8:30 A.M. EDT
                                      Personal Income and Outlays for July

                                                *       *       *

                                              Additional Information

Resources

Additional Resources available at www.bea.gov:

•	Stay informed about BEA developments by reading the BEA blog, signing up for BEA’s email
        subscription service, or following BEA on Twitter @BEA_News.
•	Historical time series for these estimates can be accessed in BEA’s Interactive Data Application.
•	Access BEA data by registering for BEA’s Data Application Programming Interface (API).
•	For more on BEA’s statistics, see our monthly online journal, the Survey of Current Business.
•	BEA's news release scheduleNIPA Handbook:  Concepts and Methods of the U.S. National Income and Product Accounts


Definitions

Personal income is the income received by, or on behalf of, all persons from all sources:  from
participation as laborers in production, from owning a home or business, from the ownership of
financial assets, and from government and business in the form of transfers. It includes income from
domestic sources as well as the rest of world. It does not include realized or unrealized capital gains or
losses.

Disposable personal income is the income available to persons for spending or saving. It is equal to
personal income less personal current taxes.

Personal consumption expenditures (PCE) is the value of the goods and services purchased by, or on the
behalf of, “persons” who reside in the United States.

Personal outlays is the sum of PCE, personal interest payments, and personal current transfer payments.

Personal saving is personal income less personal outlays and personal current taxes.

The personal saving rate is personal saving as a percentage of disposable personal income. (For a
comparison of personal saving in BEA's national income and product accounts with personal saving in
the Federal Reserve Board's financial accounts of the United States, go to
www.bea.gov/national/nipaweb/nipa-frb.asp.

Current-dollar estimates are valued in the prices of the period when the transactions occurred—that is,
at “market value.” Also referred to as “nominal estimates” or as “current-price estimates.”

Real values are inflation-adjusted estimates—that is, estimates that exclude the effects of price changes.

For more definitions, see the Glossary: National Income and Product Accounts.


Statistical conventions

Annual rates. Monthly and quarterly values are expressed at seasonally-adjusted annual rates (SAAR).
Dollar changes are calculated as the difference between these SAAR values. For detail, see the FAQ
“Why does BEA publish estimates at annual rates?”

Month-to-month percent changes are calculated from unrounded data and are not annualized.

Quarter-to-quarter percent changes are calculated from unrounded data and are displayed at annual
rates. For detail, see the FAQ “How is average annual growth calculated?”

Quantities and prices. Quantities, or “real” volume measures, and prices are expressed as index
numbers with a specified reference year equal to 100 (currently 2009). Quantity and price indexes are
calculated using a Fisher-chained weighted formula that incorporates weights from two adjacent
periods (quarters for quarterly data and annuals for annual data). “Real” dollar series are calculated by
multiplying the published quantity index by the current dollar value in the reference year (2009) and
then dividing by 100. Percent changes calculated from real quantity indexes and chained-dollar levels
are conceptually the same; any differences are due to rounding.

Chained-dollar values are not additive because the relative weights for a given period differ from those
of the reference year.

List of Personal Income and Outlays News Release Tables

Table 1.	Personal Income and Its Disposition (Months)
Table 2.	Personal Income and Its Disposition (Years and Quarters)
Table 3.	Personal Income and Its Disposition, Change From Preceding Period (Months)
Table 4.	Personal Income and Its Disposition, Change From Preceding Period (Years and Quarters)
Table 5.	Personal Income and Its Disposition, Percent Change From Preceding Period (Months)
Table 6.	Personal Income and Its Disposition, Percent Change From Preceding Period (Years and
                Quarters)
Table 7.	Real Personal Consumption Expenditures by Major Type of Product (Months)
Table 8.	Real Personal Consumption Expenditures by Major Type of Product (Years and Quarters)
Table 9.	Price Indexes for Personal Consumption Expenditures: Level and Percent Change From
                Preceding Period (Months)
Table 10.	Real Disposable Personal Income and Real Personal Consumption Expenditures: Percent
                Change From Month One Year Ago
Table 11.	Price Indexes for Personal Consumption Expenditures: Percent Change From Month One
                Year Ago
Table 12.       Revisions to Personal Income and Its Disposition
Table 13.       Changes in Personal Income and Related Measures: Comparisons with Previously Published
                Estimates (Months)
Table 14.       Changes in Personal Income and Related Measures: Comparisons with Previously Published
                Estimates (Years and Quarters)