Personal Income and Outlays: April 2020
Personal income increased $1.97 trillion (10.5 percent) in April according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) increased $2.13 trillion (12.9 percent) and personal consumption expenditures (PCE) decreased $1.89 trillion (13.6 percent).
Real DPI increased 13.4 percent in April and Real PCE decreased 13.2 percent (tables 5 and 7). The PCE price index decreased 0.5 percent (table 9). Excluding food and energy, the PCE price index decreased 0.4 percent.
|Percent change from preceding month|
|Disposable personal income:|
|Chained (2012) dollars||-0.1||0.5||0.4||-1.8||13.4|
|Personal consumption expenditures (PCE):|
|Chained (2012) dollars||0.1||0.3||0.1||-6.7||-13.2|
|PCE, excluding food and energy||0.2||0.2||0.1||0.0||-0.4|
|Price indexes:||Percent change from month one year ago|
|PCE, excluding food and energy||1.6||1.7||1.8||1.7||1.0|
The increase in personal income in April primarily reflected an increase in government social benefits to persons as payments were made to individuals from federal economic recovery programs in response to the COVID-19 pandemic (table 3). For more information, see “How are the economic impact payments for individuals authorized by the CARES Act of 2020 recorded in the NIPAs?”.
The $1,662.1 billion decrease in real PCE in April reflected a $758.3 billion decrease in spending for goods and a $943.3 billion decrease in spending for services (table 7). Within goods, decreases in all subcomponents were led by a decrease in food and beverages. Within services, the largest contributors to the decrease were spending for health care as well as food services and accommodations. Detailed information on monthly real PCE spending can be found on Table 2.3.6U.
Personal outlays decreased $1.91 trillion in April (table 3). Personal saving was $6.15 trillion in April and the personal saving rate—personal saving as a percentage of disposable personal income—was 33.0 percent (table 1).
BEA will release results from the 2020 annual update of the National Income and Product Accounts on July 30, 2020, in conjunction with the advance estimate of GDP for the second quarter of 2020. For estimates of real GDP and its major components, the span of the update will cover the most recent five years (2015-2019) and the first quarter of 2020. Estimates of income and saving will be subject to revision from 1999 through the first quarter of 2020. More information on the 2020 annual update is included in the May Survey of Current Business article, “GDP and the Economy.”
Updates to Personal Income and Outlays
This release includes revised estimates of wages and salaries, personal taxes, and contributions for government social insurance for October through December 2019 (fourth quarter). These estimates reflect the incorporation of new fourth-quarter data from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages.
Estimates have been updated for October 2019 through March 2020. Revised and previously published changes from the preceding month for current-dollar personal income, and for current-dollar and chained (2012) dollar DPI and PCE, are shown below.
|Change from preceding month|
|(Billions of dollars)||(Percent)||(Billions of dollars)||(Percent)|
|Disposable personal income:|
|Chained (2012) dollars||66.5||68.2||0.4||0.4||-261.8||-280.9||-1.7||-1.8|
|Personal consumption expenditures:|
|Chained (2012) dollars||12.8||18.2||0.1||0.1||-983.9||-902.7||-7.3||-6.7|
Next release: June 26, 2020 at 8:30 A.M. EDT
Personal Income and Outlays: May 2020