EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, Friday, September 29, 2017
BEA 17—52


* 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
  Harvey Davis (301) 278-9086 (PCE) pce@bea.gov
Media: Jeannine Aversa (301) 278-9003   Jeannine.Aversa@bea.gov
PERSONAL INCOME AND OUTLAYS, AUGUST 2017
Personal income increased $28.6 billion (0.2 percent) in August according to estimates released today by the
Bureau of Economic Analysis. Disposable personal income (DPI) increased $14.9 billion (0.1 percent) and
personal consumption expenditures (PCE) increased $18.0 billion (0.1 percent).

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

                                                                2017
                                                Apr.    May     June    July    Aug.
                                                Percent change from preceding month
Personal income:
 Current dollars                                0.1     0.3     0.0     0.3     0.2
Disposable personal income:
 Current dollars                                0.2     0.4     0.0     0.2     0.1
 Chained (2009) dollars                         0.0     0.5     0.0     0.1    -0.1
Personal consumption expenditures (PCE):
 Current dollars                                0.3     0.2     0.1     0.3     0.1
 Chained (2009) dollars                         0.1     0.3     0.1     0.2    -0.1
Price indexes:
 PCE                                            0.2    -0.1     0.0     0.1     0.2
 PCE, excluding food and energy                 0.2     0.1     0.1     0.1     0.1

Price indexes:                                 Percent change from month one year ago
 PCE                                            1.7     1.5     1.4     1.4     1.4
 PCE, excluding food and energy                 1.6     1.5     1.5     1.4     1.3

The increase in personal income in August primarily reflected an increase in government social benefits to
persons and compensation of employees (table 3).

Real PCE spending in August decreased $8.4 billion due to a decrease of $20.2 billion in spending for goods
that was partially offset by a $9.2 billion increase in spending for services (table 7). Within goods, spending
on new motor vehicles was the leading contributor to the decrease. Within services, healthcare spending was
a leading contributor to the increase. Detailed information on monthly real PCE spending can be found on Table 2.3.6U.

Personal outlays increased $16.8 billion in August (table 3). Personal saving was $522.9 billion in August
and the personal saving rate, personal saving as a percentage of disposable personal income, was 3.6 percent (table 1).

                                Updates

Estimates have been updated for April through July. The change from the preceding month for current-dollar personal
income and for current-dollar and chained (2009) dollar DPI and PCE -- revised and previously published -- are shown
below for June and July.

                                                        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                     5.2       3.3        0.0       0.0       65.6      56.1        0.4       0.3
Disposable personal income:
 Current dollars                     3.0       2.1        0.0       0.0       39.6      28.8        0.3       0.2
 Chained (2009) dollars             -2.7      -3.4        0.0       0.0       23.9      13.2        0.2       0.1
Personal consumption expenditures:
 Current dollars                    31.3      18.8        0.2       0.1       44.7      43.6        0.3       0.3
 Chained (2009) dollars             23.0      11.8        0.2       0.1       29.3      27.2        0.2       0.2

BOX.____________________________
                                Hurricane Harvey

The August estimates of personal income and outlays reflect the effects of Hurricane Harvey that made landfall in
southeastern Texas on August 25th. BEA cannot separately quantify the total impact of the storm on personal income
and outlays because most of the source data used to estimate the components of personal income and outlays do not
separately identify storm impacts. BEA made adjustments to estimates where source data were not yet available or
did not fully reflect the effects of the storm.

For more information on the treatment of disasters within the national income and product accounts, see
“How are the measures of production and income in the national accounts affected by a natural or man-made disaster?”
________________________________


                                Next release:  October 30, 2017 at 8:30 A.M. EDT
                                  Personal Income and Outlays:  September 2017

                                       Additional Information

Resources

Additional Resources available at www.bea.gov:

•	Stay informed about BEA developments by reading the BEA blog, signing up for BEA’s email
        subscription service, or following BEA on Twitter @BEA_News.
•	Historical time series for these estimates can be accessed in BEA’s Interactive Data Application.
•	Access BEA data by registering for BEA’s Data Application Programming Interface (API).
•	For more on BEA’s statistics, see our monthly online journal, the Survey of Current Business.
•	BEA's news release scheduleNIPA Handbook:  Concepts and Methods of the U.S. National Income and Product Accounts


Definitions

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.