FOR WIRE TRANSMISSION: 8:30 A.M. EDT, FRIDAY, JUNE 26, 1998 George Smith: (202) 606-5301 (Personal Income)BEA 98-20 Greg Key: 606-5302 (Personal Outlays) Recorded message: 606-5303 PERSONAL INCOME AND OUTLAYS: MAY 1998 Personal income increased $38.3 billion, or 0.5 percent, and disposable personal income (DPI) increased $27.8 billion, or 0.5 percent, in May, according to the Commerce Department's Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $35.9 billion, or 0.6 percent. In April, personal income increased $28.6 billion, or 0.4 percent, DPI increased $22.3 billion, or 0.4 percent, and PCE increased $21.0 billion, or 0.4 percent, based on revised estimates. 1998 Jan. Feb. Mar. Apr. May (Percent change from preceding month) Personal income, current dollars 0.6 0.6 0.4 0.4 0.5 Disposable personal income: Current dollars .3 .5 .4 .4 .5 Chained (1992) dollars .3 .4 .3 .2 .3 Personal consumption expenditures: Current dollars .7 .6 .4 .4 .6 Chained (1992) dollars .7 .5 .3 .2 .4 Wages and salaries Private wage and salary disbursements increased $22.3 billion in May, compared with an increase of $14.6 billion in April. Goods-producing industries' payrolls increased $0.4 billion, compared with an increase of $3.0 billion; manufacturing payrolls decreased $0.1 billion, compared with a decrease of $0.7 billion. Distributive industries' payrolls increased $10.1 billion, compared with an increase of $5.4 billion. Service industries' payrolls increased $11.9 billion, compared with an increase of $6.1 billion. Government wage and salary disbursements increased $2.0 billion, compared with an increase of $2.2 billion. Other personal income Proprietors' income increased $4.1 billion in May, compared with an increase of $5.0 billion in April. Farm proprietors' income increased $2.1 billion, compared with an increase of $2.0 billion. Nonfarm proprietors' income increased $1.9 billion, compared with an increase of $3.0 billion. Transfer payments increased $3.6 billion in May, compared with an increase of $0.9 billion in April. Personal interest income increased $1.9 billion, compared with an increase of $2.0 billion. Rental income of persons increased $2.6 billion, compared with an increase of $1.8 billion. Personal dividend income increased $2.1 billion in May, the same increase as in April. Personal taxes and disposable personal income Personal tax and nontax payments increased $10.4 billion in May, compared with an increase of $6.4 billion in April. Disposable personal income (DPI) -- personal income less personal tax and nontax payments -- increased $27.8 billion, or 0.5 percent, in May, compared with an increase of $22.3 billion, or 0.4 percent, in April. Personal outlays and personal saving Personal outlays -- PCE, interest paid by persons, and personal transfer payments to the rest of the world (net) -- increased $35.8 billion in May, compared with an increase of $20.7 billion in April. PCE increased $35.9 billion, compared with an increase of $21.0 billion. Personal saving -- DPI less personal outlays -- was $213.8 billion in May, compared with $221.7 billion in April. Personal saving as a percentage of disposable personal income was 3.5 percent in May, compared with 3.6 percent in April. Chained (1992) dollar estimates Real DPI -- DPI adjusted to remove price changes -- increased 0.3 percent in May, compared with an increase of 0.2 percent in April. Real PCE -- PCE adjusted to remove price changes -- increased 0.4 percent in May, compared with an increase of 0.2 percent in April. Purchases of durable goods increased 3.4 percent, compared with an increase of 0.2 percent; motor vehicle purchases accounted for most of the May increase. Purchases of nondurable goods decreased 0.1 percent in May, in contrast to an increase of 0.4 percent in April. Purchases of services increased 0.1 percent, compared with an increase of 0.2 percent. Revisions Estimates have been revised for January through April. Changes in personal income, current-dollar and chained (1992) dollar DPI, and current-dollar and chained (1992) dollar PCE for March and April -- revised and as published in last month's release -- are shown below. Revisions for January and February were small. Change from preceding month March April Previous Revised Previous Revised Previous Revised Previous Revised (Dollars) (Percent) (Dollars) (Percent) Personal income: Current dollars . . 22.5 25.7 0.3 0.4 28.7 28.6 0.4 0.4 Disposable personal income: Current dollars . . 19.8 22.7 0.3 0.4 22.2 22.3 0.4 0.4 Chained (1992) dollars 14.9 17.0 0.3 0.3 12.7 12.1 0.2 0.2 Personal consumption expenditures: Current dollars . . 29.5 22.0 0.5 0.4 28.3 21.0 0.5 0.4 Chained (1992) dollars 23.6 16.6 0.5 0.3 18.6 11.5 0.4 0.2 * * * BEA's major national, international, regional, and industry estimates; selected articles from the Survey of Current Business; and BEA news releases are available on BEA's web site: http://www.bea.gov STAT-USA maintains an electronic bulletin board (EBB) and an Internet site, which contain BEA estimates, BEA news releases, and the Survey of Current Business. The information available through STAT-USA is often more detailed and more timely than that available from other sources. To subscribe to STAT-USA's World Wide Web system, go to http://www.stat-usa.gov. Subscriptions for single-user unlimited access to STAT-USA's Internet information are $50.00 for 3 months or $150.00 for 1 year. For further information, call (202) 482-1986. Summary BEA estimates are available on recorded messages at the time of public release at the following telephone numbers: (202) 606-5306 Gross domestic product 606-5303 Personal income and outlays 606-5362 Summary of international transactions Most of BEA's estimates and analyses appear in the Survey of Current Business, BEA's monthly journal. The printed Survey of Current Business is available from the Superintendent of Documents, U.S. Government Printing Office, Washington D.C. 20402. First class mail: Annual subscription $88.00 domestic. Second class mail: Annual subscription $39.00 domestic, $48.75 foreign; single issue $14.00 domestic, $17.50 foreign. Annual Revision of the National Income and Product Accounts As part of the annual revision of the national income and product accounts, revised estimates of personal income and outlays for January 1995 through May 1998 will be released along with preliminary estimates for June 1998 on August 3. Information about the revision will be available in the August 3 news release and in an article describing the revision, which will appear in the August 1998 issue of the Survey of Current Business. Next release -- Personal Income and Outlays for June will be released on August 3, at 8:30 A.M. EDT. Table 1. -- Personal Income [Billions of dollars] -------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ----------------------------------------------------------- 1996 1997 Dec. 97 Jan. 98r Feb. 98r Mar. 98r Apr. 98r May 98p -------------------------------------------------------------------------------------------------------------------------- Personal income..................... 6,495.2 6,873.9 7,050.4 7,089.6 7,130.5 7,156.2 7,184.8 7,223.1 Wage and salary disbursements..... 3,632.5 3,877.4 4,007.9 4,038.7 4,069.6 4,080.6 4,097.4 4,121.7 Private industries.............. 2,989.9 3,212.1 3,332.5 3,358.9 3,387.1 3,396.8 3,411.4 3,433.7 Goods-producing industries.... 909.1 960.3 992.1 996.1 999.9 999.9 1,002.9 1,003.3 Manufacturing............... 674.7 706.0 728.1 729.6 732.0 733.3 732.6 732.5 Distributive industries....... 823.3 876.3 904.7 913.6 921.0 920.5 925.9 936.0 Service industries............ 1,257.5 1,375.5 1,435.7 1,449.2 1,466.2 1,476.4 1,482.5 1,494.4 Government...................... 642.6 665.3 675.4 679.8 682.5 683.8 686.0 688.0 Other labor income................ 407.6 416.6 422.6 423.9 425.1 426.3 427.5 428.7 Proprietors' income with IVA and CCAdj........................... 520.3 544.5 553.9 551.9 553.6 558.0 563.0 567.1 Farm............................ 37.2 40.7 38.1 33.9 30.5 28.6 30.6 32.7 Nonfarm......................... 483.1 503.8 515.8 518.0 523.1 529.4 532.4 534.3 Rental income of persons with CCAdj........................... 146.3 147.9 145.0 144.4 144.1 143.4 145.2 147.8 Personal dividend income.......... 291.2 321.5 332.8 334.9 336.8 338.8 340.9 343.0 Personal interest income.......... 735.7 768.6 780.5 782.9 785.5 787.7 789.7 791.6 Transfer payments to persons...... 1,068.0 1,121.1 1,140.0 1,149.3 1,154.4 1,160.7 1,161.6 1,165.2 Old-age, survivors, disability, and health insurance benefits. 537.6 566.7 577.8 582.4 584.7 588.4 588.1 590.3 Government unemployment insurance benefits............ 22.0 21.8 21.6 21.3 21.2 21.3 21.1 21.3 Other........................... 508.4 532.7 540.6 545.6 548.4 551.1 552.3 553.6 Less: Personal contributions for social insurance................ 306.3 323.7 332.2 336.5 338.5 339.3 340.3 341.9 -------------------------------------------------------------------------------------------------------------------------- p Preliminary. r Revised. IVA Inventory valuation adjustment CCAdj Capital consumption adjustment Source: U.S. Department of Commerce, Bureau of Economic Analysis. Table 2. -- The Disposition of Personal Income [Billions of dollars] -------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ------------------------------------------------------ 1996 1997 Dec. 97 Jan. 98r Feb. 98r Mar. 98r Apr. 98r May 98p -------------------------------------------------------------------------------------------------------------------------- Personal income....................... 6,495.2 6,873.9 7,050.4 7,089.6 7,130.5 7,156.2 7,184.8 7,223.1 Less: Personal tax and nontax payments........................... 886.9 988.7 1,029.7 1,050.5 1,062.8 1,065.9 1,072.3 1,082.7 Equals: Disposable personal income... 5,608.3 5,885.2 6,020.8 6,039.0 6,067.6 6,090.3 6,112.6 6,140.4 Less: Personal outlays............... 5,368.8 5,658.5 5,778.8 5,815.7 5,847.9 5,870.1 5,890.8 5,926.6 Personal consumption expenditures... 5,207.6 5,485.8 5,598.8 5,638.1 5,671.0 5,693.0 5,714.0 5,749.9 Interest paid by persons............ 145.2 154.8 161.3 159.4 158.8 158.9 158.6 158.5 Personal transfer payments to the rest of the world (net)........... 15.9 17.9 18.7 18.2 18.2 18.2 18.2 18.2 Equals: Personal saving.............. 239.6 226.7 242.0 223.3 219.7 220.2 221.7 213.8 Addenda: Disposable personal income: Chained (1992) dollars 1/........... 5,076.9 5,221.9 5,316.1 5,331.4 5,350.8 5,367.8 5,379.9 5,394.7 Per capita: Current dollars................... 21,117 21,969 22,373 22,428 22,521 22,590 22,657 22,744 Chained (1992) dollars............ 19,116 19,493 19,754 19,800 19,860 19,910 19,941 19,981 Population (thousands).............. 265,579 267,889 269,108 269,263 269,423 269,602 269,791 269,984 Personal saving as a percentage of disposable personal income ......... 4.3 3.9 4.0 3.7 3.6 3.6 3.6 3.5 -------------------------------------------------------------------------------------------------------------------------- p Preliminary. r Revised. 1/ Disposable personal income in chained (1992) dollars equals the current-dollar figure divided by the implicit price deflator for personal consumption expenditures. Source: U.S. Department of Commerce, Bureau of Economic Analysis. Table 3. -- Personal Income and Its Disposition, Change From Preceding Period [Billions of dollars] -------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ------------------------------------------------------ 1996 1997 Dec. 97 Jan. 98r Feb. 98r Mar. 98r Apr. 98r May 98p -------------------------------------------------------------------------------------------------------------------- Personal income....................... 344.4 378.7 30.6 39.2 40.9 25.7 28.6 38.3 Wage and salary disbursements........ 203.0 244.9 18.0 30.8 30.9 11.0 16.8 24.3 Private industries................ 183.4 222.2 16.5 26.4 28.2 9.7 14.6 22.3 Goods-producing industries...... 44.7 51.2 7.2 4.0 3.8 0.0 3.0 0.4 Manufacturing................. 26.3 31.3 3.7 1.5 2.4 1.3 -0.7 -0.1 Distributive industries......... 40.2 53.0 0.6 8.9 7.4 -0.5 5.4 10.1 Service industries.............. 98.5 118.0 8.7 13.5 17.0 10.2 6.1 11.9 Government........................ 19.6 22.7 1.5 4.4 2.7 1.3 2.2 2.0 Other labor income.................. 0.8 9.0 1.2 1.3 1.2 1.2 1.2 1.2 Proprietors' income with IVA and CCAdj............................. 31.4 24.2 1.7 -2.0 1.7 4.4 5.0 4.1 Farm.............................. 13.8 3.5 0.0 -4.2 -3.4 -1.9 2.0 2.1 Nonfarm........................... 17.6 20.7 1.7 2.2 5.1 6.3 3.0 1.9 Rental income of persons with CCAdj............................. 13.5 1.6 -0.5 -0.6 -0.3 -0.7 1.8 2.6 Personal dividend income............ 39.3 30.3 2.1 2.1 1.9 2.0 2.1 2.1 Personal interest income............ 16.8 32.9 2.2 2.4 2.6 2.2 2.0 1.9 Transfer payments to persons........ 53.0 53.1 7.1 9.3 5.1 6.3 0.9 3.6 Old-age, survivors, disability, and health insurance benefits... 29.8 29.1 5.1 4.6 2.3 3.7 -0.3 2.2 Government unemployment insurance benefits.............. 0.6 -0.2 0.2 -0.3 -0.1 0.1 -0.2 0.2 Other............................. 22.7 24.3 1.8 5.0 2.8 2.7 1.2 1.3 Less: Personal contributions for social insurance.................. 13.2 17.4 1.2 4.3 2.0 0.8 1.0 1.6 Less: Personal tax and nontax payments............................ 91.8 101.8 5.3 20.8 12.3 3.1 6.4 10.4 Equals: Disposable personal income.... 252.6 276.9 25.5 18.2 28.6 22.7 22.3 27.8 Less: Personal outlays................ 267.7 289.7 26.4 36.9 32.2 22.2 20.7 35.8 Personal consumption expenditures... 249.9 278.2 23.4 39.3 32.9 22.0 21.0 35.9 Interest paid by persons............ 16.7 9.6 3.0 -1.9 -0.6 0.1 -0.3 -0.1 Personal transfer payments to the rest of the world (net)........... 1.1 2.0 0.0 -0.5 0.0 0.0 0.0 0.0 Equals: Personal saving............... -15.0 -12.9 -1.0 -18.7 -3.6 0.5 1.5 -7.9 Addenda: Disposable personal income, chained (1992) dollars.......... 112.7 145.0 22.5 15.3 19.4 17.0 12.1 14.8 -------------------------------------------------------------------------------------------------------------------- ----------------------------------------- p Preliminary. r Revised. IVA Inventory valuation adjustment CCAdj Capital consumption adjustment Source: U.S. Department of Commerce, Bureau of Economic Analysis. Table 4. -- Personal Consumption Expenditures by Major Type of Product ------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates --------------------------------------------------------- 1996 1997 Dec. 97 Jan. 98r Feb. 98r Mar. 98r Apr. 98r May 98p ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 5,207.6 5,485.8 5,598.8 5,638.1 5,671.0 5,693.0 5,714.0 5,749.9 Durable goods....................... 634.5 659.3 675.1 692.6 691.1 678.5 680.2 699.7 Nondurable goods.................... 1,534.7 1,592.0 1,597.0 1,611.4 1,625.2 1,628.0 1,636.4 1,643.4 Services............................ 3,038.4 3,234.5 3,326.6 3,334.0 3,354.8 3,386.5 3,397.4 3,406.9 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,714.1 4,867.5 4,943.4 4,977.5 5,001.0 5,017.6 5,029.1 5,051.6 Durable goods....................... 611.1 645.5 667.9 686.7 686.2 675.3 676.5 699.2 Nondurable goods.................... 1,432.3 1,458.5 1,458.1 1,472.7 1,486.6 1,494.1 1,499.7 1,498.9 Services............................ 2,671.0 2,764.1 2,818.2 2,821.3 2,831.5 2,849.6 2,854.5 2,857.4 -------------------------------------------------------------------------------- Implicit price deflators (Index numbers, 1992 = 100) -------------------------------------------------------------------------------- Personal consumption expenditures..... 110.47 112.70 113.26 113.27 113.40 113.46 113.62 113.82 Durable goods....................... 103.83 102.12 101.08 100.86 100.71 100.48 100.55 100.07 Nondurable goods.................... 107.15 109.15 109.53 109.42 109.32 108.96 109.11 109.64 Services............................ 113.76 117.02 118.04 118.17 118.48 118.84 119.02 119.23 ------------------------------------------------------------------------------------------------------------------------- Change from preceding period ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 249.9 278.2 23.4 39.3 32.9 22.0 21.0 35.9 Durable goods....................... 26.0 24.8 5.1 17.5 -1.5 -12.6 1.7 19.5 Nondurable goods.................... 58.9 57.3 -3.9 14.4 13.8 2.8 8.4 7.0 Services............................ 165.0 196.1 22.1 7.4 20.8 31.7 10.9 9.5 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 118.8 153.4 20.6 34.1 23.5 16.6 11.5 22.5 Durable goods....................... 27.5 34.4 4.9 18.8 -0.5 -10.9 1.2 22.7 Nondurable goods.................... 19.7 26.2 -2.5 14.6 13.9 7.5 5.6 -0.8 Services............................ 71.4 93.1 17.9 3.1 10.2 18.1 4.9 2.9 __________________________________________________________________________________________________________________________ Table 5. -- Percent Change From Preceding Period in Selected Series -------------------------------------------------------------------------------------------------------------------------- 1996 1997 Dec. 97 Jan. 98r Feb. 98r Mar. 98r Apr. 98r May 98p -------------------------------------------------------------------------------------------------------------------------- Based on current dollars --------------------------------------------------------------------------------- Personal income....................... 5.6 5.8 0.4 0.6 0.6 0.4 0.4 0.5 Disposable personal income............ 4.7 4.9 0.4 0.3 0.5 0.4 0.4 0.5 Personal consumption expenditures..... 5.0 5.3 0.4 0.7 0.6 0.4 0.4 0.6 Durable goods....................... 4.3 3.9 0.8 2.6 -0.2 -1.8 0.2 2.9 Nondurable goods.................... 4.0 3.7 -0.2 0.9 0.9 0.2 0.5 0.4 Services............................ 5.7 6.5 0.7 0.2 0.6 0.9 0.3 0.3 --------------------------------------------------------------------------------- Based on chained (1992) dollars --------------------------------------------------------------------------------- Disposable personal income............ 2.3 2.9 0.4 0.3 0.4 0.3 0.2 0.3 Personal consumption expenditures..... 2.6 3.3 0.4 0.7 0.5 0.3 0.2 0.4 Durable goods....................... 4.7 5.6 0.7 2.8 -0.1 -1.6 0.2 3.4 Nondurable goods.................... 1.4 1.8 -0.2 1.0 0.9 0.5 0.4 -0.1 Services............................ 2.7 3.5 0.6 0.1 0.4 0.6 0.2 0.1 -------------------------------------------------------------------------------------------------------------------------- ---------------------------------------- p Preliminary. r Revised. Source: U.S. Department of Commerce, Bureau of Economic Analysis.