FOR WIRE TRANSMISSION: 8:30 A.M. EST, MONDAY, FEBRUARY 2, 1998 Tracey D. Schlitzer: (202) 606-5301 (Personal Income) BEA 98-3 Greg Key: 606-5302 (Personal Outlays) Recorded message: 606-5303 PERSONAL INCOME AND OUTLAYS: DECEMBER 1997 Personal income increased $30.3 billion, or 0.4 percent, and disposable personal income (DPI) increased $27.6 billion, or 0.5 percent, in December, according to the Commerce Department's Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $17.1 billion, or 0.3 percent. In November, personal income increased $51.2 billion, or 0.7 percent, DPI increased $40.9 billion, or 0.7 percent, and PCE increased $21.8 billion, or 0.4 percent, based on revised estimates. 1997 Aug. Sept. Oct. Nov. Dec. (Percent change from preceding month) Personal income, current dollars . . . 0.6 0.3 0.5 0.7 0.4 Disposable personal income: Current dollars . . . . .5 .3 .5 .7 .5 Chained (1992) dollars. .5 .2 .4 .6 .4 Personal consumption expenditures: Current dollars . . . . .1 .2 .6 .4 .3 Chained (1992) dollars. .1 .0 .5 .3 .3 Wages and salaries Private wage and salary disbursements increased $15.1 billion in December, compared with an increase of $43.2 billion in November. In December, employment and average hourly earnings increased, while average weekly hours decreased. Goods-producing industries' payrolls increased $5.8 billion in December, compared with an increase of $9.3 billion in November; manufacturing payrolls increased $3.0 billion, compared with an increase of $6.5 billion. Distributive industries' payrolls decreased $0.8 billion, in contrast to an increase of $10.1 billion. Service industries' payrolls increased $10.1 billion, compared with an increase of $23.9 billion. Government wage and salary disbursements increased $1.6 billion, compared with an increase of $2.3 billion. Other personal income Proprietors' income increased $1.2 billion in December, compared with an increase of $1.4 billion in November. Farm proprietors' income increased $0.4 billion, in contrast to a decrease of $0.1 billion. Nonfarm proprietors' income increased $0.8 billion, compared with an increase of $1.5 billion. Transfer payments increased $7.0 billion in December, compared with an increase of $1.7 billion in November. The December increase reflected retroactive social security benefit payments of $3.4 billion at an annual rate, resulting from a recalculation of the earnings base underlying the benefits for recent retirees. Personal interest income increased $2.9 billion in December, compared with an increase of $2.8 billion in November. Personal dividend income increased $2.1 billion in December, the same as in November. Personal taxes and disposable personal income Personal tax and nontax payments increased $2.8 billion in December, compared with an increase of $10.3 billion in November. Disposable personal income (DPI) -- personal income less personal tax and nontax payments -- increased $27.6 billion, or 0.5 percent, in December, compared with an increase of $40.9 billion, or 0.7 percent, in November. Personal outlays and personal saving Personal outlays -- PCE, interest paid by persons, and personal transfer payments to the rest of the world (net) -- increased $16.5 billion in December, compared with an increase of $22.3 billion in November. PCE increased $17.1 billion, compared with an increase of $21.8 billion. Personal saving -- DPI less personal outlays -- was $244.7 billion in December, compared with $233.7 billion in November. Personal saving as a percentage of disposable personal income was 4.1 percent in December, compared with 3.9 percent in November. Chained (1992) dollar estimates Real DPI -- DPI adjusted to remove price changes -- increased 0.4 percent in December, compared with an increase of 0.6 percent in November. Real PCE -- PCE adjusted to remove price changes -- increased 0.3 percent in December, the same as in November. Purchases of durable goods increased 0.7 percent, compared with an increase of 1.8 percent. Purchases of nondurable goods decreased less than 0.1 percent in December, the same as in November. Purchases of services increased 0.3 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 (1992) dollar DPI, and current-dollar and chained (1992) 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 (Dollars) (Percent) (Dollars) (Percent) Personal income: Current dollars . . 38.9 35.7 0.6 0.5 53.6 51.2 0.8 0.7 Disposable personal income: Current dollars . . 31.0 28.4 .5 .5 42.7 40.9 .7 .7 Chained (1992) dollars 21.2 19.3 .4 .4 29.4 29.9 .6 .6 Personal consumption expenditures: Current dollars . . 25.3 31.3 .5 .6 24.2 21.8 .4 .4 Chained (1992) dollars 16.7 22.3 .3 .5 13.6 13.4 .3 .3 Personal income and outlays in 1997 Personal income increased 5.8 percent, or $379.2 billion, in 1997 (that is, from the 1996 annual level to the 1997 annual level), compared with an increase of 5.6 percent, or $344.4 billion in 1996 (see the table below and table 3). Disposable personal income (DPI) increased 5.0 percent, compared with an increase of 4.7 percent. Personal outlays increased 5.4 percent, compared with an increase of 5.2 percent. Real DPI increased 2.9 percent, compared with an increase of 2.3 percent. The saving rate was 3.8 percent during 1997, compared with 4.3 percent during 1996. 1995 1996 1997 (Percent change from preceding year) Current dollars Personal income 6.2 5.6 5.8 Wage and salary disbursements 5.8 5.9 6.7 Other labor income 0.5 0.2 2.2 Proprietors' income with inventory valuation and capital consumption adjustments 3.7 6.4 4.7 Farm -36.4 58.7 10.0 Nonfarm 7.1 3.8 4.3 Rental income of persons with capital consumption adjustment 6.8 10.1 1.2 Personal dividend income 23.0 15.6 10.4 Personal interest income 7.6 2.3 4.5 Transfer payments to persons 6.3 5.2 5.0 Old-age, survivors, disability, and health insurance benefits 7.4 5.9 5.4 Government unemployment insurance benefits -9.0 2.6 -1.0 Other 6.0 4.7 4.8 Personal contributions for social insurance 5.6 4.5 5.7 Personal tax and nontax payments 7.6 11.5 11.4 Disposable personal income 6.0 4.7 5.0 Personal outlays 5.3 5.2 5.4 Chained (1992) dollars Disposable personal income 3.3 2.3 2.9 Addendum: Personal saving as a percentage of disposable personal income 4.8 4.3 3.8 BEA's major national, regional, and international 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. 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Second class mail: Annual subscription $35.00 domestic, $43.75 foreign; single issue $11.00 domestic, $13.75 foreign. * * * Next release -- Personal Income and Outlays for January will be released on March 2, 1998, at 8:30 A.M. EST. Table 1. -- Personal Income [Billions of dollars] -------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ----------------------------------------------------------- 1996 1997 July 97 Aug. 97 Sep. 97 Oct. 97r Nov. 97r Dec. 97p -------------------------------------------------------------------------------------------------------------------------- Personal income..................... 6,495.2 6,874.4 6,873.1 6,912.2 6,935.5 6,971.2 7,022.4 7,052.7 Wage and salary disbursements..... 3,632.5 3,877.2 3,870.0 3,902.3 3,916.1 3,943.8 3,989.3 4,006.0 Private industries.............. 2,989.9 3,211.8 3,204.6 3,234.5 3,246.2 3,271.7 3,314.9 3,330.0 Goods-producing industries.... 909.1 960.1 955.5 962.0 966.6 975.4 984.7 990.5 Manufacturing............... 674.7 705.9 701.5 706.5 710.0 717.8 724.3 727.3 Distributive industries....... 823.3 876.0 872.2 883.7 886.4 893.1 903.2 902.4 Service industries............ 1,257.5 1,375.6 1,376.8 1,388.9 1,393.3 1,403.1 1,427.0 1,437.1 Government...................... 642.6 665.4 665.4 667.8 669.8 672.1 674.4 676.0 Other labor income................ 407.6 416.6 416.6 417.6 418.9 420.1 421.4 422.6 Proprietors' income with IVA and CCAdj........................... 520.3 544.7 546.8 546.1 548.7 552.0 553.4 554.6 Farm............................ 37.2 40.9 43.0 40.8 39.0 38.9 38.8 39.2 Nonfarm......................... 483.1 503.8 503.9 505.3 509.6 513.1 514.6 515.4 Rental income of persons with CCAdj........................... 146.3 148.1 147.4 148.5 148.2 146.9 146.5 146.5 Personal dividend income.......... 291.2 321.5 322.4 324.5 326.6 328.6 330.7 332.8 Personal interest income.......... 735.7 768.8 771.0 772.5 774.3 776.3 779.1 782.0 Transfer payments to persons...... 1,068.0 1,121.1 1,122.1 1,125.9 1,129.0 1,131.3 1,133.0 1,140.0 Old-age, survivors, disability, and health insurance benefits. 537.6 566.7 567.3 570.4 570.4 571.9 572.6 577.8 Government unemployment insurance benefits............ 22.0 21.8 21.7 21.4 21.6 21.5 21.5 21.5 Other........................... 508.4 532.7 533.1 534.1 537.0 537.9 538.9 540.7 Less: Personal contributions for social insurance................ 306.3 323.6 323.1 325.2 326.1 327.9 331.0 331.8 -------------------------------------------------------------------------------------------------------------------------- p Preliminary. r Revised. IVA Inventory valuation 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 July 97 Aug. 97 Sep. 97 Oct. 97r Nov. 97r Dec. 97p -------------------------------------------------------------------------------------------------------------------------- Personal income....................... 6,495.2 6,874.4 6,873.1 6,912.2 6,935.5 6,971.2 7,022.4 7,052.7 Less: Personal tax and nontax payments........................... 886.9 987.8 991.2 999.3 1,003.5 1,010.7 1,021.0 1,023.8 Equals: Disposable personal income... 5,608.3 5,886.6 5,881.9 5,913.0 5,932.0 5,960.4 6,001.3 6,028.9 Less: Personal outlays............... 5,368.8 5,661.0 5,690.4 5,699.3 5,712.6 5,745.4 5,767.7 5,784.2 Personal consumption expenditures... 5,207.6 5,488.6 5,518.7 5,525.8 5,537.8 5,569.1 5,590.9 5,608.0 Interest paid by persons............ 145.2 154.5 153.5 155.2 156.6 157.8 158.3 157.7 Personal transfer payments to the rest of the world (net)........... 15.9 17.9 18.2 18.2 18.2 18.5 18.5 18.5 Equals: Personal saving.............. 239.6 225.6 191.4 213.7 219.4 215.0 233.7 244.7 Addenda: Disposable personal income: Chained (1992) dollars 1/........... 5,076.9 5,222.7 5,214.8 5,239.8 5,247.8 5,267.1 5,297.0 5,320.3 Per capita: Current dollars................... 21,117 21,976 21,951 22,049 22,102 22,191 22,329 22,417 Chained (1992) dollars............ 19,116 19,497 19,462 19,539 19,553 19,610 19,708 19,782 Population (thousands).............. 265,579 267,869 267,952 268,171 268,391 268,594 268,775 268,947 Personal saving as a percentage of disposable personal income ......... 4.3 3.8 3.3 3.6 3.7 3.6 3.9 4.1 -------------------------------------------------------------------------------------------------------------------------- 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. CCAdj Capital consumption adjustment Table 3. -- Personal Income and Its Disposition, Change From Preceding Period [Billions of dollars] -------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ------------------------------------------------------ 1996 1997 July 97 Aug. 97 Sep. 97 Oct. 97r Nov. 97r Dec.97p -------------------------------------------------------------------------------------------------------------------- Personal income....................... 344.4 379.2 9.6 39.1 23.3 35.7 51.2 30.3 Wage and salary disbursements........ 203.0 244.7 2.4 32.3 13.8 27.7 45.5 16.7 Private industries................ 183.4 221.9 0.1 29.9 11.7 25.5 43.2 15.1 Goods-producing industries...... 44.7 51.0 1.0 6.5 4.6 8.8 9.3 5.8 Manufacturing................. 26.3 31.2 0.3 5.0 3.5 7.8 6.5 3.0 Distributive industries......... 40.2 52.7 -0.7 11.5 2.7 6.7 10.1 -0.8 Service industries.............. 98.5 118.1 -0.3 12.1 4.4 9.8 23.9 10.1 Government........................ 19.6 22.8 2.3 2.4 2.0 2.3 2.3 1.6 Other labor income.................. 0.8 9.0 1.0 1.0 1.3 1.2 1.3 1.2 Proprietors' income with IVA and CCAdj............................. 31.4 24.4 0.3 -0.7 2.6 3.3 1.4 1.2 Farm.............................. 13.8 3.7 -1.0 -2.2 -1.8 -0.1 -0.1 0.4 Nonfarm........................... 17.6 20.7 1.5 1.4 4.3 3.5 1.5 0.8 Rental income of persons with CCAdj............................. 13.5 1.8 -0.4 1.1 -0.3 -1.3 -0.4 0.0 Personal dividend income............ 39.3 30.3 2.1 2.1 2.1 2.0 2.1 2.1 Personal interest income............ 16.8 33.1 2.1 1.5 1.8 2.0 2.8 2.9 Transfer payments to persons........ 53.0 53.1 2.4 3.8 3.1 2.3 1.7 7.0 Old-age, survivors, disability, and health insurance benefits... 29.8 29.1 1.4 3.1 0.0 1.5 0.7 5.2 Government unemployment insurance benefits.............. 0.6 -0.2 -0.2 -0.3 0.2 -0.1 0.0 0.0 Other............................. 22.7 24.3 1.2 1.0 2.9 0.9 1.0 1.8 Less: Personal contributions for social insurance.................. 13.2 17.3 0.1 2.1 0.9 1.8 3.1 0.8 Less: Personal tax and nontax payments............................ 91.8 100.9 2.3 8.1 4.2 7.2 10.3 2.8 Equals: Disposable personal income.... 252.6 278.3 7.4 31.1 19.0 28.4 40.9 27.6 Less: Personal outlays................ 267.7 292.2 66.9 8.9 13.3 32.8 22.3 16.5 Personal consumption expenditures... 249.9 281.0 66.8 7.1 12.0 31.3 21.8 17.1 Interest paid by persons............ 16.7 9.3 -0.5 1.7 1.4 1.2 0.5 -0.6 Personal transfer payments to the rest of the world (net)........... 1.1 2.0 0.6 0.0 0.0 0.3 0.0 0.0 Equals: Personal saving............... -15.0 -14.0 -59.6 22.3 5.7 -4.4 18.7 11.0 Addenda: Disposable personal income, chained (1992) dollars.......... 112.7 145.8 -3.5 25.0 8.0 19.3 29.9 23.3 -------------------------------------------------------------------------------------------------------------------- ----------------------------------------- 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 July 97 Aug. 97 Sep. 97 Oct. 97r Nov. 97r Dec. 97p ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 5,207.6 5,488.6 5,518.7 5,525.8 5,537.8 5,569.1 5,590.9 5,608.0 Durable goods....................... 634.5 659.4 670.8 670.5 660.7 658.8 669.5 674.4 Nondurable goods.................... 1,534.7 1,592.7 1,597.6 1,599.8 1,604.9 1,604.5 1,603.7 1,603.4 Services............................ 3,038.4 3,236.5 3,250.3 3,255.5 3,272.2 3,305.9 3,317.6 3,330.2 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,714.1 4,869.7 4,892.8 4,896.8 4,899.0 4,921.3 4,934.7 4,948.9 Durable goods....................... 611.1 645.8 657.7 659.9 650.9 650.7 662.6 667.6 Nondurable goods.................... 1,432.3 1,459.3 1,466.0 1,464.8 1,465.6 1,464.3 1,464.0 1,463.9 Services............................ 2,671.0 2,765.2 2,771.0 2,774.1 2,783.2 2,806.0 2,808.9 2,818.2 -------------------------------------------------------------------------------- Implicit price deflators (Index numbers, 1992 = 100) -------------------------------------------------------------------------------- Personal consumption expenditures..... 110.47 112.71 112.79 112.85 113.04 113.16 113.30 113.32 Durable goods....................... 103.83 102.11 102.00 101.61 101.51 101.24 101.03 101.03 Nondurable goods.................... 107.15 109.14 108.97 109.22 109.51 109.57 109.55 109.53 Services............................ 113.76 117.04 117.30 117.35 117.57 117.82 118.11 118.17 ------------------------------------------------------------------------------------------------------------------------- Change from preceding period ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 249.9 281.0 66.8 7.1 12.0 31.3 21.8 17.1 Durable goods....................... 26.0 24.9 23.8 -0.3 -9.8 -1.9 10.7 4.9 Nondurable goods.................... 58.9 58.0 15.0 2.2 5.1 -0.4 -0.8 -0.3 Services............................ 165.0 198.1 28.0 5.2 16.7 33.7 11.7 12.6 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 118.8 155.6 49.9 4.0 2.2 22.3 13.4 14.2 Durable goods....................... 27.5 34.7 24.7 2.2 -9.0 -0.2 11.9 5.0 Nondurable goods.................... 19.7 27.0 11.3 -1.2 0.8 -1.3 -0.3 -0.1 Services............................ 71.4 94.2 16.0 3.1 9.1 22.8 2.9 9.3 __________________________________________________________________________________________________________________________ Table 5. -- Percent Change From Preceding Period in Selected Series -------------------------------------------------------------------------------------------------------------------------- 1996 1997 July 97 Aug. 97 Sep. 97 Oct. 97r Nov. 97r Dec. 97p -------------------------------------------------------------------------------------------------------------------------- Based on current dollars --------------------------------------------------------------------------------- Personal income....................... 5.6 5.8 0.1 0.6 0.3 0.5 0.7 0.4 Disposable personal income............ 4.7 5.0 0.1 0.5 0.3 0.5 0.7 0.5 Personal consumption expenditures..... 5.0 5.4 1.2 0.1 0.2 0.6 0.4 0.3 Durable goods....................... 4.3 3.9 3.7 -0.1 -1.5 -0.3 1.6 0.7 Nondurable goods.................... 4.0 3.8 0.9 0.1 0.3 0.0 0.0 0.0 Services............................ 5.7 6.5 0.9 0.2 0.5 1.0 0.4 0.4 --------------------------------------------------------------------------------- Based on chained (1992) dollars --------------------------------------------------------------------------------- Disposable personal income............ 2.3 2.9 -0.1 0.5 0.2 0.4 0.6 0.4 Personal consumption expenditures..... 2.6 3.3 1.0 0.1 0.0 0.5 0.3 0.3 Durable goods....................... 4.7 5.7 3.9 0.3 -1.4 0.0 1.8 0.7 Nondurable goods.................... 1.4 1.9 0.8 -0.1 0.1 -0.1 0.0 0.0 Services............................ 2.7 3.5 0.6 0.1 0.3 0.8 0.1 0.3 -------------------------------------------------------------------------------------------------------------------------- ---------------------------------------- p Preliminary. r Revised. Source: U.S. Department of Commerce, Bureau of Economic Analysis.