EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, AUGUST 1, 2014
BEA 14-35


* 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.


James Rankin (202) 606-5301 (Personal Income) piniwd@bea.gov
Harvey Davis (202) 606-5302 (Personal Consumption Expenditures) pce@bea.gov
Kurt Kunze: (202) 606-9748 (Revision)
Jeannine Aversa (202) 606-2649 (News Media)
PERSONAL INCOME AND OUTLAYS, JUNE 2014; REVISED ESTIMATES 1999 THROUGH MAY 2014
Personal income increased $56.7 billion, or 0.4 percent, and disposable personal income (DPI) increased $51.5 billion,
or 0.4 percent, in June, according to the Bureau of Economic Analysis.  Personal consumption expenditures (PCE)
increased $51.7 billion, or 0.4 percent.  In May, personal income increased $57.4 billion, or 0.4 percent, DPI
increased $55.0 billion, or 0.4 percent, and PCE increased $39.8 billion, or 0.3 percent, based on revised estimates.

Real DPI increased 0.2 percent in June, the same increase as in May.  Real PCE increased 0.2 percent in June, compared
with an increase of 0.1 percent in May.

                                        2014
                                        Feb.            Mar.            Apr.            May             June
                                                       (Percent change from preceding month)
Personal income, current dollars        0.7             0.7             0.3             0.4             0.4
Disposable personal income:
 Current dollars                        0.7             0.7             0.4             0.4             0.4
 Chained (2009) dollars                 0.6             0.5             0.2             0.2             0.2
Personal consumption expenditures:
 Current dollars                        0.4             0.8             0.1             0.3             0.4
 Chained (2009) dollars                 0.4             0.6            -0.1             0.1             0.2


BOX._____________
                                Annual Revision of the National Income and Product Accounts

The estimates released today reflect the results of the annual revision of the national income and product accounts (NIPAs)
in conjunction with preliminary estimates for June 2014.  In addition to the regular revision of the estimates for the most
recent 3 years and for the first 5 months of 2014, select estimates were revised back to January 1999.  More information is
available in "Preview of the Upcoming Annual NIPA Revision" in the May Survey of Current Business and on BEA's Web site.
The August Survey will contain an article describing the annual revision in detail.
__________________

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 (2009) dollars.

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

                                Wages and salaries

Private wages and salaries increased $28.9 billion in June, compared with an increase of $28.2 billion in May.  Goods-producing
industries' payrolls increased $7.6 billion, compared with an increase of $8.6 billion; manufacturing payrolls increased $4.3 billion,
compared with an increase of $6.5 billion.  Services-producing industries' payrolls increased $21.3 billion, compared with an
increase of $19.5 billion.  Government wages and salaries increased $1.7 billion, compared with an increase of $1.3 billion.

                                Other personal income

Supplements to wages and salaries increased $5.0 billion in June, compared with an increase of $4.2 billion in May.

Proprietors' income increased $5.8 billion in June, compared with an increase of $0.1 billion in May.  Farm proprietors' income
increased $0.2 billion, compared with an increase of $0.3 billion.  Nonfarm proprietors' income increased $5.4 billion, in contrast
to a decrease of $0.1 billion.

Rental income of persons increased $3.5 billion in June, compared with an increase of $3.6 billion in May.  Personal income
receipts on assets (personal interest income plus personal dividend income) increased $11.9 billion, compared with increased of $8.9 billion.
Personal current transfer receipts increased $4.4 billion in June, compared with an increase of $15.3 billion in May.

Contributions for government social insurance -- a subtraction in calculating personal income -- increased $4.5 billion in June,
compared with an increase of $4.1 billion in May.

                                Personal current taxes and disposable personal income

Personal current taxes increased $5.3 billion in June, compared with an increase of $2.5 billion in May.  Disposable personal
income (DPI) -- personal income less personal current taxes -- increased $51.5 billion, or 0.4 percent, in June, compared with
an increase of $55.0 billion, or 0.4 percent, in May.

                                Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $51.6 billion in June,
compared with an increase of $39.7 billion in May.  PCE increased $51.7 billion, compared with an increase of $39.8 billion.

Personal saving -- DPI less personal outlays -- was $687.9 billion in June, compared with $688.0 billion in May.  The personal
saving rate -- personal saving as a percentage of disposable personal income -- was 5.3 percent in June, the same rate as in May.
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 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 0.2 percent in June, the same increase as in May.

Real PCE -- PCE adjusted to remove price changes -- increased 0.2 percent in June, compared with an increase of 0.1 percent in May.
Purchases of durable goods increased 0.4 percent, compared with an increase of 1.3 percent.  Purchases of nondurable goods
increased 0.3 percent, in contrast to a decrease of 0.3 percent.  Purchases of services increased 0.1 percent, in contrast to a
decrease of less than 0.1 percent.

The price index for PCE increased 0.2 percent in June, compared with an increase of 0.3 percent in May.  The PCE price index,
excluding food and energy, increased 0.1 percent, compared with an increase of 0.2 percent.

                                PCE price index: percent change from month one year ago

The June price index for PCE increased 1.6 percent from June a year ago.  The June PCE price index, excluding food and energy,
increased 1.5 percent from June a year ago.

BOX.______________
NOTE.  BEA acknowledges the special efforts by the Bureau of Labor Statistics with the assistance of 18 state employment offices
in providing preliminary data for the first quarter of 2014 from the quarterly census of employment and wages (QCEW).  Wage and salary
data from the state employment offices of California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Kansas, Maryland,

Massachusetts, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Texas, and Utah were provided.  These data have
greatly improved the estimates of wages and salaries.
__________________

                                Revision of the Personal Income and Outlays Estimates

The revised estimates reflect the results of the annual revision of the national income and product accounts (NIPAs).  In addition to
the regular revision of estimates for the most recent 3 years and the first quarter of 2014, this “flexible” annual revision results
in revisions to current-dollar estimates beginning with the first quarter of 1999.  The reference year remains 2009.  When the
estimates for the reference year (2009) are revised, the levels of the related index numbers and chained-dollar estimates are also
revised for the entire historical period; revisions to percent changes before the first quarter of 1999 are small and mostly due to rounding.

Revisions to annual estimates of personal income and outlays for 2011 - 2013 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 up $10.7 billion, or 0.1 percent, for 2011; was revised up $143.9 billion, or 1.0 percent, for 2012; and was
revised up $32.2 billion, or 0.2 percent, for 2013.  For 2011, an upward revision to personal interest income was partly offset by downward
revisions to nonfarm proprietors’ income and to wages and salaries.  For 2012, upward revisions to personal dividend income, to personal
interest income, and to nonfarm proprietors’ income were partly offset by downward revisions to supplements to wages and salaries, to
rental income of persons, and to personal current transfer receipts.  For 2013, upward revisions to personal dividend income, to nonfarm
proprietors’ income, and to personal interest income were partly offset by downward revisions to farm proprietors’ income, to personal
current transfer receipts, and to wages and salaries.

Disposable personal income was revised up $14.0 billion, or 0.1 percent, for 2011; was revised up $138.2 billion, or 1.1 percent, for 2012;
and was revised up $28.9 billion, or 0.2 percent, for 2013.  The percent change from the preceding year in real DPI was revised up from an

increase of 2.4 percent to an increase of 2.5 percent in 2011; was revised up from an increase of 2.0 percent to an increase of 3.0 percent
in 2012; and was revised down from an increase of 0.7 percent to a decrease of 0.2 percent in 2013.

Personal outlays was revised down $28.9 billion, or 0.3 percent, for 2011; was revised down $70.5 billion, or 0.6 percent, for 2012; and
was revised down $17.8 billion, or 0.1 percent, for 2013.  Revisions to personal outlays primarily reflected downward revisions to PCE and
personal interest payments.

The personal saving rate (personal saving as a percentage of disposable personal income) was revised up from 5.7 percent to 6.0 percent
for 2011, was revised up from 5.6 percent to 7.2 percent for 2012, and was revised up from 4.5 percent to 4.9 percent for 2013.

FOOTNOTE._________
BEA’s plans to undertake “flexible” annual revisions that include revisions for longer periods than the traditional three-year period were
described in the June 2008 Survey of Current Business at www.bea.gov/scb.
__________________

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 free e-mail summaries of BEA releases and announcements.

                                *       *       *

Next release – August 29, 2014 at 8:30 A.M. EDT for Personal Income and Outlays for July