EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, Wednesday, November 30, 2016
BEA 16—64

* 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.

Technical: James Rankin (301) 278-9087 (Personal Income) piniwd@bea.gov
  Kyle Brown (301) 278-9086 (PCE) pce@bea.gov
Media: Jeannine Aversa (301) 278-9003   jeannine.aversa@bea.gov
Personal income increased $98.6 billion (0.6 percent) in October according to estimates released today
by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $86.5 billion
(0.6 percent) and personal consumption expenditures (PCE) increased $38.1 billion (0.3 percent).

Real DPI increased 0.4 percent in October and Real PCE increased 0.1 percent. The PCE price index
increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.1 percent.

						June     July     Aug.    Sept.    Oct.
						Percent change from preceding month
Personal income:
 Current dollars		                0.4      0.4      0.3     0.4      0.6
Disposable personal income:
 Current dollars			        0.3      0.4      0.2     0.4      0.6
 Chained (2009) dollars			        0.2      0.3      0.1     0.2      0.4
Personal consumption expenditures (PCE):
 Current dollars			        0.5      0.3      0.0     0.7      0.3
 Chained (2009) dollars				0.4      0.3     -0.1     0.5      0.1
Price indexes:
 PCE 						0.1      0.1      0.2     0.2      0.2
 PCE, excluding food and energy			0.1      0.1      0.2     0.1      0.1

Price indexes:					Percent change from month one year ago
 PCE						0.9      0.8	  1.0     1.2      1.4
 PCE, excluding food and energy			1.6      1.6      1.7     1.7      1.7

The increase in personal income in October primarily reflected increases in compensation of employees
and personal interest income (table 3).

The increase in real PCE in October reflected increases in spending for durable and nondurable goods,
which were mostly offset by a decrease in spending for services (table 7).

Personal outlays increased $40.4 billion in October (table 3). Personal saving was $860.2 billion in
October and the personal saving rate, personal saving as a percentage of disposable personal income,
was 6.0 percent (table 1).


Estimates have been updated for April through September. The percent change from the preceding month
for current-dollar personal income, and for current-dollar and chained (2009) dollar DPI and PCE
-- revised and as published in last month's release -- are shown below.

							Change from preceding month

						  August 				 September
				Previous   Revised   Previous   Revised   Previous   Revised   Previous   Revised
			       (Billions of dollars)      (Percent)      (Billions of dollars)      (Percent)
Personal income:
 Current dollars                    35.2      40.8        0.2       0.3       46.7      63.2        0.3       0.4
Disposable personal income:
 Current dollars                    27.7      32.0        0.2       0.2       37.0      51.1        0.3       0.4
 Chained (2009) dollars              4.4       8.7        0.0       0.1        6.3      20.0        0.0       0.2
Personal consumption expenditures:
 Current dollars                    -8.0       5.5       -0.1       0.0       61.0      89.5        0.5       0.7
 Chained (2009) dollars            -26.0     -13.3       -0.2      -0.1       30.4      57.0        0.3       0.5

		QCEW Data Included in the Second Quarter of 2016

This news release includes revised estimates of wages and salaries, personal taxes, and contributions for
government social insurance for April through June 2016 (second quarter). These estimates reflect
the incorporation of the most recently available second-quarter wage and salary tabulations from the
Quarterly Census of Employment and Wages (QCEW) program from the Bureau of Labor Statistics.

				Next release:  December 22, 2016 at 10:00 A.M. EST
				   Personal Income and Outlays:  November 2016

				       Additional Information


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* For more on BEA’s statistics, see our monthly online journal, the Survey of Current Business.
* BEA's news release schedule
* NIPA Handbook:  Concepts and Methods of the U.S. National Income and Product Accounts


Personal income is the income received by, or on behalf of, all persons from all sources: from
participation as laborers in production, from owning a home or business, from the ownership of
financial assets, and from government and business in the form of transfers. It includes income
from domestic sources as well as the rest of world. It does not include realized or unrealized capital gains
or losses.

Disposable personal income is the income available to persons for spending or saving. It is equal to
personal income less personal current taxes.

Personal consumption expenditures (PCE) is the value of the goods and services purchased by, or on the
behalf of, “persons” who reside in the United States.

Personal outlays is the sum of PCE, personal interest payments, and personal current transfer payments.

Personal saving is personal income less personal outlays and personal current taxes.

The personal saving rate is personal saving as a percentage of disposable personal income.

Current-dollar estimates are valued in the prices of the period when the transactions occurred—that is,
at “market value.” Also referred to as “nominal estimates” or as “current-price estimates.”

Real values are inflation-adjusted estimates—that is, estimates that exclude the effects of price changes.

For more definitions, see the Glossary: National Income and Product Accounts.

Statistical conventions

Annual rates. Monthly and quarterly values are expressed at seasonally-adjusted annual rates (SAAR).
Dollar changes are calculated as the difference between these SAAR values. For detail, see the FAQ
“Why does BEA publish estimates at annual rates?”

Month-to-month percent changes are calculated from unrounded data and are not annualized.

Quarter-to-quarter percent changes are calculated from unrounded data and are displayed at annual
rates. For detail, see the FAQ “How is average annual growth calculated?”

Quantities and prices. Quantities, or “real” volume measures, and prices are expressed as index
numbers with a specified reference year equal to 100 (currently 2009). Quantity and price indexes are
calculated using a Fisher-chained weighted formula that incorporates weights from two adjacent
periods (quarters for quarterly data and annuals for annual data). “Real” dollar series are calculated by
multiplying the published quantity index by the current dollar value in the reference year (2009) and
then dividing by 100. Percent changes calculated from real quantity indexes and chained-dollar levels
are conceptually the same; any differences are due to rounding.

Chained-dollar values are not additive because the relative weights for a given period differ from those
of the reference year.