News Release
Personal Income and Outlays, September 2007
SEPTEMBER 2007
Personal income increased $47.4 billion, or 0.4 percent, and disposable personal income (DPI)
increased $40.6 billion, or 0.4 percent, in September, according to the Bureau of Economic
Analysis. Personal consumption expenditures (PCE) increased $30.1 billion, or 0.3 percent. In
August, personal income increased $52.8 billion, or 0.4 percent, DPI increased $48.6 billion, or 0.5
percent, and PCE increased $51.4 billion, or 0.5 percent, based on revised estimates.
2007
May June July Aug. Sept.
(Percent change from preceding month)
Personal income, current dollars 0.5 0.5 0.5 0.4 0.4
Disposable personal income:
Current dollars 0.5 0.4 0.6 0.5 0.4
Chained (2000) dollars 0.0 0.3 0.5 0.5 0.2
Personal consumption expenditures:
Current dollars 0.5 0.2 0.4 0.5 0.3
Chained (2000) dollars 0.1 0.1 0.3 0.6 0.1
Wages and salaries
Private wage and salary disbursements increased $33.4 billion in September, compared with an
increase of $17.0 billion in August. Goods-producing industries' payrolls increased $2.0 billion,
compared with an increase of $2.1 billion; manufacturing payrolls increased $0.3 billion, compared
with an increase of $1.0 billion. Services-producing industries' payrolls increased $31.5 billion,
compared with an increase of $14.9 billion. Government wage and salary disbursements increased
$4.5 billion, compared with an increase of $5.8 billion.
Other personal income
Supplements to wages and salaries increased $5.8 billion in September, compared with an
increase of $4.8 billion in August.
Proprietors' income decreased $7.1 billion in September, compared with a decrease of $0.4
billion in August. Farm proprietors' income increased $2.5 billion, compared with an increase of
$2.3 billion. Nonfarm proprietors' income decreased $9.6 billion, compared with a decrease of $2.7
billion.
Rental income of persons increased $1.4 billion in September, compared with an increase of
$1.0 billion in August. Personal income receipts on assets (personal interest income plus personal
dividend income) increased $13.6 billion, compared with an increase of $13.8 billion. Personal
current transfer receipts increased $0.7 billion in September, compared with an increase of $13.2
billion in August.
Contributions for government social insurance -- a subtraction in calculating personal income --
increased $4.9 billion in September, compared with an increase of $2.4 billion in August.
Personal current taxes and disposable personal income
Personal current taxes increased $6.8 billion in September, compared with an increase of $4.2
billion in August. Disposable personal income (DPI) -- personal income less personal current taxes
-- increased $40.6 billion, or 0.4 percent, in September, compared with an increase of $48.6 billion,
or 0.5 percent, in August.
Personal outlays and personal saving
Personal outlays -- PCE, personal interest payments, and personal current transfer payments
increased $33.0 billion in September, compared with an increase of $54.3 billion in August. PCE
increased $30.1 billion, compared with an increase of $51.4 billion.
Personal saving -- DPI less personal outlays -- was $89.7 billion in September, compared with
$82.1 billion in August. Personal saving as a percentage of disposable personal income was 0.9
percent in September, compared with 0.8 percent in August. Saving from current income may be
near zero or negative when outlays are financed by borrowing (including borrowing financed
through credit cards or home equity loans), by selling investments or other assets, or by using
savings from previous periods. For more information, see the FAQs on "Personal Saving" on
BEA's Web site. 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 (which helped finance negative saving), go to
/bea/dn/nipaweb/Nipa-Frb.asp.
Real DPI and real PCE
Real DPI -- DPI adjusted to remove price changes -- increased 0.2 percent in September,
compared with an increase of 0.5 percent in August.
Real PCE -- PCE adjusted to remove price changes -- increased 0.1 percent in September,
compared with an increase of 0.6 percent in August. Purchases of durable goods increased 0.4
percent, compared with an increase of 2.9 percent. Purchases of nondurable goods increased 0.3
percent, in contrast to a decrease of 0.1 percent. Purchases of services decreased 0.1 percent, in
contrast to an increase of 0.5 percent.
PCE price index -- The PCE price index increased 0.2 percent in September, in contrast to a
decrease of less than 0.1 percent in August. The PCE price index, excluding food and energy,
increased 0.2 percent, compared with an increase of 0.1 percent in August.
Revisions
Estimates have been revised for July and August. Changes in personal income, current-dollar
and chained (2000) dollar DPI, and current-dollar and chained (2000) dollar PCE for July and
August -- revised and as published in last month's release -- are shown below.
Change from preceding month
July August
Previous Revised Previous Revised Previous Revised Previous Revised
(Billions of dollars) (Percent) (Billions of dollars) (Percent)
Personal Income:
Current dollars...................... 61.5 60.6 0.5 0.5 40.2 52.8 0.3 0.4
Disposable personal income:
Current dollars...................... 60.3 61.0 0.6 0.6 37.2 48.6 0.4 0.5
Chained (2000) dollars............... 44.0 42.4 0.5 0.5 38.4 44.8 0.4 0.5
Personal consumption expenditures:
Current dollars...................... 37.3 35.7 0.4 0.4 54.8 51.4 0.6 0.5
Chained (2000) dollars............... 24.7 21.4 0.3 0.3 53.2 46.9 0.6 0.6
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
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* * *
Next release -- Personal Income and Outlays for October will be released on
November 30, 2007, at 8:30 A.M. EST.