Home > News Release: Personal Income and Outlays, December 2010
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, MONDAY, JANUARY 31, 2011
BEA 11-03


James Rankin: (202) 606-5301 (Personal Income) piniwd@bea.gov
Kyle Brown: (202) 606-5302 (Personal Consumption Expenditures)pce@bea.gov

* See the navigation bar at the right side of the news release text for links to data tables,
contact personnel and their telephone numbers, and supplementary materials.

Personal Income and Outlays, December 2010
Personal income increased $54.5 billion, or 0.4 percent, and disposable personal income (DPI)
increased $47.3 billion, or 0.4 percent, in December, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $69.5 billion, or 0.7 percent.  In November,
personal income increased $44.9 billion, or 0.4 percent, DPI increased $39.0 billion, or 0.3 percent
and PCE increased $35.4 billion, or 0.3 percent, based on revised estimates.

Real disposable income increased 0.1 percent in December, compared with an increase of 0.2
percent in November.  Real PCE increased 0.4 percent, compared with an increase of 0.2 percent.

                                        2010
                                        Aug.            Sept.           Oct.            Nov.            Dec.
                                                       (Percent change from preceding month)
Personal income, current dollars        0.5             0.0             0.5             0.4             0.4
Disposable personal income:
 Current dollars                        0.4            -0.1             0.4             0.3             0.4
   Chained (2005) dollars               0.3            -0.2             0.2             0.2             0.1
Personal consumption expenditures:
 Current dollars                        0.5             0.3             0.7             0.3             0.7
 Chained (2005) dollars                 0.3             0.2             0.5             0.2             0.4

                                Wages and salaries

Private wage and salary disbursements increased $15.5 billion in December, compared with an increase
of $5.9 billion in November.  Goods-producing industries' payrolls increased $1.5 billion, in contrast
to a decrease of $2.5 billion; manufacturing payrolls increased $0.2 billion, in contrast to a decrease
of $2.5 billion.  Services-producing industries' payrolls increased $14.0 billion, compared with an
increase of $8.4 billion.  Government wage and salary disbursements increased $1.6 billion, compared
with an increase of $1.3 billion.

                                Other personal income

Supplements to wages and salaries increased $3.8 billion in December, compared with an increase of $3.1 billion in November.

Proprietors' income increased $8.1 billion in December, compared with an increase of $7.9 billion
in November.  Farm proprietors' income increased $2.8 billion, compared with an increase of $2.7 billion.
Nonfarm proprietors' income increased $5.2 billion, the same increase as in November.

Rental income of persons increased $1.9 billion in December, compared with an increase of $1.7 billion in November.
Personal income receipts on assets (personal interest income plus personal dividend income) increased $21.9 billion,
compared with an increase of $17.3 billion.  Personal current transfer receipts increased $3.8 billion, compared
with an increase of $8.7 billion.

Contributions for government social insurance -- a subtraction in calculating personal income -- increased $2.1 billion
in December, compared with an increase of $1.1 billion in November.

                                Personal current taxes and disposable personal income

Personal current taxes increased $7.1 billion in December, compared with an increase of $5.9 billion in November.
Disposable personal income (DPI) -- personal income less personal current taxes -- increased $47.3 billion,
or 0.4 percent, in December, compared with an increase of $39.0 billion, or 0.3 percent, in November.

                                Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased
$67.5 billion in December, compared with an increase of $33.6 billion in November.  PCE increased
$69.5 billion, compared with an increase of $35.4 billion.

Personal saving -- DPI less personal outlays -- was $614.1 billion in December, compared with $634.4 billion
in November.  Personal saving as a percentage of disposable personal income was 5.3 percent in December,
compared with 5.5 percent in November.  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, go to http://www.bea.gov/national/nipaweb/Nipa-Frb.asp.

                                Real DPI, real PCE and price index

Real DPI -- DPI adjusted to remove price changes -- increased 0.1 percent in December, compared with
an increase of 0.2 percent in November.

Real PCE -- PCE adjusted to remove price changes -- increased 0.4 percent in December, compared with
an increase of 0.2 percent in November.  Purchases of durable goods increased 1.0 percent, in
contrast to a decrease of 0.2 percent.  Purchases of nondurable goods increased 0.3 percent, compared
with an increase of 0.4 percent. Purchases of services increased 0.3 percent, the same increase as in
November.

PCE price index -- The price index for PCE increased 0.3 percent in December, compared with an increase
of 0.1 percent in November.  The PCE price index, excluding food and energy, increased less than 0.1
percent, compared with an increase of 0.1 percent.

                                Revisions

Estimates have been revised for October and November.  Changes in personal income, current-dollar
and chained (2005) dollar DPI, and current-dollar and chained (2005) dollar PCE for October and
November -- 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                        49.5       64.1      0.4        0.5       42.3       44.9      0.3        0.4
Disposable personal income:
 Current dollars                        39.3       48.4      0.3        0.4       37.8       39.0      0.3        0.3
 Chained (2005) dollars                 18.1       24.4      0.2        0.2       24.7       24.9      0.2        0.2
Personal consumption expenditures:
 Current dollars                        68.9       74.8      0.7        0.7       43.3       35.4      0.4        0.3
 Chained (2005) dollars                 46.2       49.7      0.5        0.5       30.4       22.6      0.3        0.2

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 announcements.

                                *          *          *

Next release – February 28, 2011, at 8:30 A.M. EST for Personal Income and Outlays for January.

                                Release dates in 2011

December 2010....January 31              April 2011...May 27           August 2011......September 30
January 2011.....February 28             May 2011.....June 27          September 2011...October 28
February 2011....March 28                June 2011....August 2         October 2011.....November 23
March 2011.......April 29                July 2011....August 29        November 2011....December 23

                                -more-
________________________
NOTE. -- Monthly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified.
Month-to-month dollar changes are differences between these published estimates.  Month-to-month percent
changes are calculated from unrounded data and are not annualized.
“Real” estimates are in chained (2005) dollars.

This news release is available on BEA’s Web site at www.bea.gov/newsreleases/rels.htm.