Home > News Release: Personal Income and Outlays, August 2007
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, SEPTEMBER 28, 2007
BEA 07-47
PERSONAL INCOME AND OUTLAYS
AUGUST 2007
                              
        Personal income increased $40.2 billion, or 0.3 percent, and disposable personal income (DPI)
increased $37.2 billion, or 0.4 percent, in August, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $54.8 billion, or 0.6 percent.  In July, personal
income increased $61.5 billion, or 0.5 percent, DPI increased $60.3 billion, or 0.6 percent, and PCE
increased $37.3 billion, or 0.4 percent, based on revised estimates.
                                        2007
                                        Apr.            May             June            July            Aug.
                                                        (Percent change from preceding month)
Personal income, current dollars        0.0             0.5             0.5             0.5             0.3
Disposable personal income:
 Current dollars                       -0.1             0.5             0.4             0.6             0.4
 Chained (2000) dollars                -0.4             0.0             0.3             0.5             0.4
Personal consumption expenditures:
 Current dollars                        0.6             0.5             0.2             0.4             0.6
 Chained (2000) dollars                 0.3             0.1             0.1             0.3             0.6
                                Wages and salaries

        Private wage and salary disbursements increased $12.8 billion in August, compared with an
increase of $22.4 billion in July.  Goods-producing industries' payrolls increased $0.6 billion,
compared with an increase of less than $0.1 billion; manufacturing payrolls decreased $0.6 billion,
in contrast to an increase of $0.1 billion.  Services-producing industries' payrolls increased $12.3
billion, compared with an increase of $22.2 billion.  Government wage and salary disbursements
increased $1.6 billion, compared with an increase of $1.4 billion.

                                Other personal income

        Supplements to wages and salaries increased $4.1 billion in August, compared with an increase
of $6.1 billion in July.

        Proprietors' income increased $3.0 billion in August, compared with an increase of $6.7 billion
in July.  Farm proprietors' income increased $1.5 billion, compared with an increase of $1.0 billion.
Nonfarm proprietors' income increased $1.5 billion, compared with an increase of $5.7 billion.

        Rental income of persons decreased $1.3 billion in August, compared with a decrease of $2.4
billion in July.  Personal income receipts on assets (personal interest income plus personal dividend
income) increased $15.7 billion, compared with an increase of $16.0 billion.  Personal current
transfer receipts increased $5.6 billion, compared with an increase of $14.7 billion.

        Contributions for government social insurance -- a subtraction in calculating personal income --
increased $1.5 billion in August, compared with an increase of $3.3 billion in July.

                                Personal current taxes and disposable personal income

        Personal current taxes increased $3.0 billion in August, compared with an increase of $1.2
billion in July.  Disposable personal income (DPI) -- personal income less personal current taxes --
increased $37.2 billion, or 0.4 percent, in August, compared with an increase of $60.3 billion, or 0.6
percent, in July.

                                Personal outlays and personal saving

        Personal outlays -- PCE, personal interest payments, and personal current transfer payments
increased $54.2 billion in August, compared with an increase of $36.7 billion in July.  PCE
increased $54.8 billion, compared with an increase of $37.3 billion.

        Personal saving -- DPI less personal outlays -- was $72.5 billion in August, compared with
$89.5 billion in July.  Personal saving as a percentage of disposable personal income was 0.7 percent
in August, compared with 0.9 percent in July.  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 http://www.bea.gov/bea/dn/nipaweb/Nipa-Frb.asp.

                                Real DPI and real PCE

        Real DPI -- DPI adjusted to remove price changes -- increased 0.4 percent in August,
compared with an increase of 0.5 percent in July.

        Real PCE -- PCE adjusted to remove price changes -- increased 0.6 percent in August,
compared with an increase of 0.3 percent in July.  Purchases of durable goods increased 2.8 percent,
in contrast to a decrease of 0.3 percent.  Purchases of motor vehicles and parts accounted for most of
the increase in August.  Purchases of nondurable goods decreased less than 0.1 percent in August, in
contrast to an increase of 0.5 percent in July.  Purchases of services increased 0.6 percent, compared
with an increase of 0.3 percent.

        PCE price index -- The PCE price index decreased 0.1 percent in August, in contrast to an
increase of 0.1 percent in July.  The PCE price index, excluding food and energy, increased 0.1
percent in August, the same increase as in July.

                                Revisions

        Estimates have been revised for April through July.  Changes in personal income, current-
dollar and chained (2000) dollar DPI, and current-dollar and chained (2000) dollar PCE for June and
July -- revised and as published in last month's release -- are shown below.  Revisions for April and
May were small.
                                                                Change from preceding month

                                        June                                      July
                                        Previous   Revised   Previous   Revised   Previous   Revised   Previous   Revised
                                       (Billions of dollars)      (Percent)      (Billions of dollars)      (Percent)
Personal Income:
 Current dollars......................  45.7       52.8      0.4        0.5       61.9       61.5      0.5        0.5
Disposable personal income:
 Current dollars......................  36.5       43.2      0.4        0.4       57.3       60.3      0.6        0.6
 Chained (2000) dollars...............  18.1       24.2      0.2        0.3       41.4       44.0      0.5        0.5
Personal consumption expenditures:
 Current dollars......................  16.1       21.1      0.2        0.2       37.8       37.3      0.4        0.4
 Chained (2000) dollars...............   1.3        5.9      0.0        0.1       25.2       24.7      0.3        0.3
        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 September will be released on
November 1, 2007, at 8:30 A.M. EDT.