Home > News Release: Personal Income and Outlays, November 2007
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, FRIDAY, DECEMBER 21, 2007
BEA 07-61


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James E. Rankin: (202) 606-5301 (Personal Income)
Michael Armah: (202) 606-5302 (Personal Outlays)
PERSONAL INCOME AND OUTLAYS
NOVEMBER 2007
        Personal income increased $43.1 billion, or 0.4 percent, and disposable personal income (DPI)
increased $32.9 billion, or 0.3 percent, in November, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $110.6 billion, or 1.1 percent.  In October,
personal income increased $24.8 billion, or 0.2 percent, DPI increased $17.0 billion, or 0.2 percent,
and PCE increased $39.4 billion, or 0.4 percent, based on revised estimates.

                                        2007
                                        July            Aug.            Sept.           Oct.            Nov.
                                                        (Percent change from preceding month)
Personal income, current dollars        0.6             0.5             0.5             0.2             0.4
Disposable personal income:
 Current dollars                        0.7             0.5             0.5             0.2             0.3
 Chained (2000) dollars                 0.6             0.5             0.2            -0.2            -0.3
Personal consumption expenditures:
 Current dollars                        0.4             0.4             0.5             0.4             1.1
 Chained (2000) dollars                 0.3             0.4             0.2             0.1             0.5

                                Wages and salaries

        Private wage and salary disbursements increased $36.0 billion in November, in contrast to a
decrease of $1.3 billion in October.  Goods-producing industries' payrolls increased $6.2 billion, in
contrast to a decrease of $2.2 billion; manufacturing payrolls increased $2.9 billion, in contrast to a
decrease of $1.2 billion.  Services-producing industries' payrolls increased $29.8 billion, compared
with an increase of $1.0 billion.  Government wage and salary disbursements increased $4.0 billion,
the same increase as in October.

                                Other personal income

        Supplements to wages and salaries increased $6.0 billion in November, compared with an
increase of $4.4 billion in October.

        Proprietors' income increased $7.2 billion in November, compared with an increase of $3.7
billion in October.  Farm proprietors' income increased $0.5 billion, compared with an increase of
$0.6 billion.  Nonfarm proprietors' income increased $6.7 billion, compared with an increase of $3.1
billion.

        Rental income of persons increased $1.9 billion in November, compared with an increase of
$2.2 billion in October.  Personal income receipts on assets (personal interest income plus personal
dividend income) increased $2.5 billion, compared with an increase of $2.4 billion.  Personal current
transfer receipts decreased $9.5 billion, in contrast to an increase of $9.6 billion. The November
change reflects a decrease in Medicare part D prescription drug benefit payments; the reduction
reflects the annual reconciliation of estimated and actual prescription drug costs.

        Contributions for government social insurance -- a subtraction in calculating personal income --
increased $5.1 billion in November, compared with an increase of $0.2 billion in October.

                                Personal current taxes and disposable personal income

        Personal current taxes increased $10.3 billion in November, compared with an increase of $7.8
billion in October.  Disposable personal income (DPI) -- personal income less personal current taxes
-- increased $32.9 billion, or 0.3 percent, in November, compared with an increase of $17.0 billion,
or 0.2 percent, in October.

                                Personal outlays and personal saving

        Personal outlays -- PCE, personal interest payments, and personal current transfer payments
increased $111.9 billion in November, compared with an increase of $41.0 billion in October.  PCE
increased $110.6 billion, compared with an increase of $39.4 billion.

        Personal saving -- DPI less personal outlays -- was a negative $48.4 billion in November, in
contrast to a positive $30.7 billion in October.  Personal saving as a percentage of disposable
personal income was a negative 0.5 percent in November, in contrast to a positive 0.3 percent in
October.  Negative personal saving reflects personal outlays that exceed disposable personal income.
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.

                                Real DPI and real PCE

        Real DPI -- DPI adjusted to remove price changes -- decreased 0.3 percent in November,
compared with a decrease of 0.2 percent in October.

        Real PCE -- PCE adjusted to remove price changes -- increased 0.5 percent in November,
compared with an increase of 0.1 percent in October.  Purchases of durable goods increased 0.6
percent, in contrast to a decrease of 0.1 percent.  Purchases of nondurable goods increased 0.6
percent, compared with an increase of 0.3 percent.  Purchases of services increased 0.5 percent,
compared with an increase of less than 0.1 percent.

        The price index for PCE increased 0.6 percent in November, compared with an increase of 0.3
percent in October; most of the November increase was accounted for by increases in energy prices.
The PCE price index, excluding food and energy, increased 0.2 percent, the same increase as in
October.

                                Revisions

        Estimates have been revised for July through October.  Changes in personal income, current-
dollar and chained (2000) dollar DPI, and current-dollar and chained (2000) dollar PCE for
September and October -- revised and as published in last month's release -- are shown below.

                                                                Change from preceding month

                                        September                                 October
                                        Previous   Revised   Previous   Revised   Previous   Revised   Previous   Revised
                                       (Billions of dollars)       (Percent)     (Billions of dollars)       (Percent)
Personal Income:
 Current dollars......................  50.4       53.7      0.4        0.5       21.2       24.8      0.2        0.2
Disposable personal income:
 Current dollars......................  43.2       46.6      0.4        0.5       14.0       17.0      0.1        0.2
 Chained (2000) dollars...............  13.3       14.9      0.2        0.2      -12.4      -13.2     -0.1       -0.2
Personal consumption expenditures:
 Current dollars......................  33.0       48.9      0.3        0.5       23.8       39.4      0.2        0.4
 Chained (2000) dollars...............   5.7       18.0      0.1        0.2       -2.9        7.0      0.0        0.1

        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 -- January 31, 2008, at 8:30 A.M. EST for Personal Income and Outlays for December

        Release dates in 2008

        December 2007...   January 31    April 2008...     May 30        August 2008...   September 29
         January 2008...  February 29      May 2008...    June 27     September 2008...     October 31
        February 2008...     March 28     June 2008...   August 4       October 2008...    November 26
           March 2008...       May  1     July 2008...  August 29      November 2008...    December 24