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News Release

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, Monday, January 29, 2018
BEA 18-05

Personal Income and Outlays, December 2017

Personal income increased $58.7 billion (0.4 percent) in December according to estimates released today
by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $48.0 billion (0.3 percent)
and personal consumption expenditures (PCE) increased $54.2 billion (0.4 percent).

Real DPI increased 0.2 percent in December and Real PCE increased 0.3 percent. The PCE price index
increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.2 percent.

                                                                2017
                                                Aug.    Sept.    Oct.    Nov.    Dec.
                                                Percent change from preceding month
Personal income:
 Current dollars                                0.2      0.5     0.4     0.3     0.4
Disposable personal income:
 Current dollars                                0.1      0.4     0.3     0.3     0.3
 Chained (2009) dollars                        -0.1      0.0     0.2     0.0     0.2
Personal consumption expenditures (PCE):
 Current dollars                                0.2      1.0     0.3     0.8     0.4
 Chained (2009) dollars                         0.0      0.6     0.1     0.5     0.3
Price indexes:
 PCE                                            0.2      0.4     0.1     0.2     0.1
 PCE, excluding food and energy                 0.1      0.2     0.2     0.1     0.2

Price indexes:                                  Percent change from month one year ago
 PCE                                            1.4      1.7     1.6     1.8     1.7
 PCE, excluding food and energy                 1.3      1.4     1.4     1.5     1.5

The increase in personal income in December primarily reflected increases in wages and salaries and
personal interest income (table 3).

The $34.4 billion increase in real PCE in December reflected an increase of $11.1 billion in spending for
goods and a $23.2 billion increase in spending for services (table 7). Within goods, new motor vehicles was
the leading contributor to the increase. Within services, the largest contributor to the increase was spending
for electricity and gas. Detailed information on monthly real PCE spending can be found in Table 2.4.6U.

Personal outlays increased $61.5 billion in December (table 3). Personal saving was $351.6 billion in December
and the personal saving rate, personal saving as a percentage of disposable personal income, was 2.4 percent (table 1).

                                2017 Personal Income and Outlays

Personal income (table 6) increased 3.1 percent in 2017 (that is, from the 2016 annual level to the 2017
annual level), compared with an increase of 2.4 percent in 2016. DPI increased 2.9 percent in 2017 compared
with an increase of 2.6 percent in 2016. In 2017, PCE increased 4.5 percent, compared with an increase of
4.0 percent in 2016.

Real DPI increased 1.2 percent in 2017, compared with an increase of 1.4 percent in 2016. Real PCE (table 8)
increased 2.7 percent, the same increase as in 2016.

                                Updates to Personal Income and Outlays

Estimates have been updated for October and November. The percent change from the preceding month for
current-dollar personal income, and for current-dollar and chained (2009) dollar DPI and PCE  -- 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                    59.5      61.9        0.4       0.4       54.0      50.4        0.3       0.3
Disposable personal income:
 Current dollars                    60.9      48.7        0.4       0.3       50.9      37.6        0.4       0.3
 Chained (2009) dollars             35.1      24.1        0.3       0.2       15.2       2.6        0.1       0.0
Personal consumption expenditures:
 Current dollars                    23.2      35.5        0.2       0.3       87.1     101.9        0.6       0.8
 Chained (2009) dollars              3.0      13.7        0.0       0.1       49.1      61.1        0.4       0.5

                                Next release:  March 1, 2018 at 8:30 A.M. EST
                                 Personal Income and Outlays:  January 2018