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News Release

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, Tuesday, August 1, 2017
BEA 17-39

Personal Income and Outlays, June 2017; Annual Update 2014 through May 2017

Personal income decreased $3.5 billion (less than -0.1 percent) in June according to estimates released
today by the Bureau of Economic Analysis. Disposable personal income (DPI) decreased $4.2 billion
(less than -0.1 percent) and personal consumption expenditures (PCE) increased $8.1 billion (0.1 percent).

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

                                                                2017
                                                Feb.    Mar.    Apr.    May     June
                                                Percent change from preceding month
Personal income:
 Current dollars                                0.5     0.3     0.2     0.3     0.0
Disposable personal income:
 Current dollars                                0.5     0.3     0.2     0.4     0.0
 Chained (2009) dollars                         0.4     0.5     0.0     0.5    -0.1
Personal consumption expenditures (PCE):
 Current dollars                                0.1     0.5     0.3     0.2     0.1
 Chained (2009) dollars                         0.0     0.7     0.1     0.2     0.0
Price indexes:
 PCE                                            0.1    -0.2     0.2     0.0     0.0
 PCE, excluding food and energy                 0.2    -0.2     0.2     0.1     0.1


Price indexes:                                  Percent change from month one year ago
 PCE                                            2.2     1.8     1.7     1.5     1.4
 PCE, excluding food and energy                 1.9     1.6     1.6     1.5     1.5

The decrease in personal income in June primarily reflected decreases in personal dividend income and personal
interest income that were partially offset by an increase in compensation of employees (table 3). The June decrease 
in personal dividend income reflected a return to prior levels after a notable increase in May.

The $4.5 billion increase in real PCE in June primarily reflected a $10.0 billion increase in spending for services
that was partially offset by a decline of $4.4 billion in spending for nondurable goods and a decline of $2.3 billion
in spending for durable goods (table 7). Within services, the primary contributor to the increase was spending for health
care. Within goods, gasoline was the leading contributor to the decline. Detailed information on real PCE spending can
be found on NIPA Table 2.3.6.

Personal outlays increased $14.1 billion in June (table 3). Personal saving was $546.4 billion in June and the personal
saving rate, personal saving as a percentage of disposable personal income, was 3.8 percent (table 1).

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 2017. The update covers the most recent 3 years and the first 5 months
of 2017. For more information, see information on the “2017 Annual Update” on BEA’s website. Additionally, the August Survey
of Current Business will contain an article that describes the results in detail.
__________________________

                                Updates

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
2014 through May 2017.

Revisions to annual estimates of personal income and outlays for 2014 through 2016 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 $8.5 billion, or 0.1 percent, in 2014; $94.5 billion, or 0.6 percent, in 2015; and
revised down $58.0 billion, or -0.4 percent, in 2016.

* For 2014, revisions to personal income and its components were generally small, and primarily reflected a $21.6 billion
  downward revision to nonfarm proprietors’ income that was partly offset by a $15.8 billion upward revision to personal
  dividend income.
* For 2015, the revision to personal income primarily reflected upward revisions of $68.7 billion to personal dividend
  income and $64.5 billion to personal interest income that were partially offset by a downward revision of $71.7 billion
  to nonfarm proprietors’ income.
* For 2016, the revision to personal income primarily reflected an upward revision of $100.8 billion to personal interest
  income that was more than offset by downward revisions of $94.3 billion to compensation of employees and $91.0 billion
  to nonfarm proprietors’ income.

DPI was revised up $9.9 billion, or 0.1 percent, in 2014; $95.2 billion, or 0.7 percent, in 2015; and revised down $57.2
billion, or -0.4 percent, in 2016. The percent change from the preceding year in real DPI was revised up 0.1 percentage
point to 3.6 percent in 2014, revised up 0.7 percentage point to 4.2 percent in 2015, and revised down 1.2 percentage
points to 1.4 percent in 2016.

Personal outlays was revised down $2.9 billion, or less than -0.1 percent, in 2014; revised up $50.5 billion, or 0.4 percent,
in 2015; and revised up $60.9 billion, or 0.5 percent, in 2016. Revisions to personal outlays primarily reflect revisions
to PCE.

The personal saving rate was revised up 0.1 percentage point to 5.7 percent in 2014, revised up 0.3 percentage point to
6.1 percent in 2015, and revised down 0.8 percentage point to 4.9 percent in 2016.

BOX.______________________
                                QCEW Data Included in the First Quarter of 2017

BEA’s data on wages and salaries for the first quarter of 2017 were based on expedited information from state employment
offices across the country. BEA acknowledges the special efforts by the Bureau of Labor Statistics with the assistance of
these state employment offices in providing preliminary data from the Quarterly Census of Employment and Wages (QCEW).
__________________________

                                Next release: August 31, 2017 at 8:30 A.M. EDT
                                  Personal Income and Outlays:  July 2017