Home > News Release: Personal Income and Outlays, March 2008
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, THURSDAY, MAY 1, 2008
BEA 08-19


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PERSONAL INCOME AND OUTLAYS
March 2008
        Personal income increased $38.8 billion, or 0.3 percent, and disposable personal income (DPI)
increased $29.6 billion, or 0.3 percent, in March, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $42.9 billion, or 0.4 percent.  In February, personal
income increased $58.2 billion, or 0.5 percent, DPI increased $50.3 billion, or 0.5 percent, and PCE
increased $11.0 billion, or 0.1 percent,  based on revised estimates.

        Real disposable income decreased less than 0.1 percent in March, in contrast to an increase of  0.3
percent in February.  Real PCE increased 0.1 percent, in contrast to a decrease of less than 0.1 percent.

                                        2007                            2008
                                        Nov.            Dec.            Jan.            Feb.            Mar.
                                                       (Percent change from preceding month)
Personal income, current dollars        0.3             0.4             0.3             0.5             0.3
Disposable personal income:
 Current dollars                        0.3             0.4             0.4             0.5             0.3
 Chained (2000) dollars                -0.3             0.2             0.1             0.3             0.0
Personal consumption expenditures:
 Current dollars                        1.0             0.2             0.4             0.1             0.4
 Chained (2000) dollars                 0.3            -0.1             0.1             0.0             0.1

                                Wages and salaries

        Private wage and salary disbursements increased $26.1 billion in March, compared with an
increase of $17.3 billion in February.  Goods-producing industries' payrolls increased $4.8 billion,
compared with an increase of $3.3 billion; manufacturing payrolls increased $2.4 billion, compared
with an increase of $1.9 billion.  Services-producing industries' payrolls increased $21.3 billion,
compared with an increase of $14.0 billion.  Government wage and salary disbursements increased
$3.6 billion, compared with an increase of $5.3 billion.

                                Other personal income

        Supplements to wages and salaries increased $5.9 billion in March, compared with an increase
of $5.8 billion in February.

        Proprietors' income decreased $4.9 billion in March, compared with a decrease of $7.2 billion
in February.  Farm proprietors' income decreased $3.2 billion, compared with a decrease of $3.0
billion.  Nonfarm proprietors' income decreased $1.6 billion, compared with a decrease of $4.1
billion.

        Rental income of persons decreased $1.0 billion in March, compared with a decrease of $1.3
billion in February.  Personal income receipts on assets (personal interest income plus personal
dividend income) increased $4.9 billion, compared with an increase of $5.3 billion.

        Personal current transfer receipts increased $8.1 billion in March, compared with an increase of
$36.0 billion in February, and a decrease of $12.0 billion in January.  The changes in personal
current transfer receipts primarily reflect the pattern of federal Medicare part D prescription drug
payments; these payments were reduced in January to recover overpayments that were made in 2006.

        Contributions for government social insurance -- a subtraction in calculating personal income --
increased $3.9 billion in March, compared with an increase of $3.0 billion in February.

        Personal current taxes and disposable personal income

        Personal current taxes increased $9.2 billion in March, compared with an increase of $7.9
billion in February.  Disposable personal income (DPI) -- personal income less personal current
taxes -- increased $29.6 billion, or 0.3 percent, in March, compared with an increase of $50.3 billion,
or 0.5 percent, in February.

                                Personal outlays and personal saving

        Personal outlays -- PCE, personal interest payments, and personal current transfer payments --
increased $42.1 billion in March, compared with an increase of $10.4 billion in February.  PCE
increased $42.9 billion, compared with an increase of $11.0 billion.

        Personal saving -- DPI less personal outlays -- was $25.2 billion in March, compared with
$37.7 billion in February.  Personal saving as a percentage of disposable personal income was 0.2
percent in March, compared with 0.4 percent in February.  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 help finance consumption), go to /bea/dn/nipaweb/Nipa-Frb.asp.

                                Real DPI and real PCE

        Real DPI -- DPI adjusted to remove price changes -- decreased less than 0.1 percent in March,
in contrast to an increase of 0.3 percent in February.

        Real PCE -- PCE adjusted to remove price changes -- increased 0.1 percent in March, in
contrast to a decrease of less than 0.1 percent in February.  Purchases of durable goods decreased 0.5
percent, in contrast to an increase of 0.1 percent.  Purchases of nondurable goods increased 0.2
percent, in contrast to a decrease of less than 0.1 percent.  Purchases of services increased 0.2
percent, in contrast to a decrease of 0.1 percent.

        PCE prices -- The price index for PCE increased 0.3 percent in March, compared with an
increase of 0.1 percent in February.  Prices, excluding food and energy, increased 0.2 percent,
compared with an increase of 0.1 percent.

                                Revisions

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

                                                                Change from preceding month
                                        January                                   February
                                        Previous   Revised   Previous   Revised   Previous   Revised   Previous   Revised
                                       (Billions of dollars)      (Percent)      (Billions of dollars)      (Percent)
Personal Income:
 Current dollars.....................   30.4       30.7      0.3        0.3       56.0       58.2      0.5        0.5
Disposable personal income:
 Current dollars.....................   43.7       43.4      0.4        0.4       48.7       50.3      0.5        0.5
 Chained (2000) dollars..............   10.6       12.1      0.1        0.1       30.2       29.6      0.3        0.3
Personal consumption expenditures:
 Current dollars.....................   42.0       42.1      0.4        0.4       12.0       11.0      0.1        0.1
 Chained (2000) dollars..............   10.2       12.0      0.1        0.1        0.0       -2.7      0.0        0.0

        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 -- May 30, 2008 at 8:30 A.M. EDT for Personal Income and Outlays for April.