FOR WIRE TRANSMISSION: 8:30 A.M. EDT, FRIDAY, AUGUST 30, 1996 Tracey D. Schlitzer:(202)606-5301 (Personal Income) BEA 96-28 Clinton P. McCully: 606-5302 (Personal Outlays) Recorded message: 606-5303 PERSONAL INCOME AND OUTLAYS: JULY 1996 Personal income increased $7.0 billion, or 0.1 percent, and disposable personal income (DPI) increased $6.5 billion, or 0.1 percent, in July, according to the Commerce Department's Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $9.4 billion, or 0.2 percent. In June, personal income increased $55.2 billion, or 0.9 percent, DPI increased $45.3 billion, or 0.8 percent, and PCE decreased $19.3 billion, or 0.4 percent, based on revised estimates. 1996 Mar. Apr. May June July (Percent change from preceding month) Personal income, current dollars 0.4 0.5 0.5 0.9 0.1 Disposable personal income: Current dollars . . . . . . . .3 -.5 1.4 .8 .1 Chained (1992) dollars. . . . .0 -.8 1.3 .8 -.1 Personal consumption expenditures: Current dollars . . . . . . . .4 .5 .8 -.4 .2 Chained (1992) dollars. . . . .1 .2 .6 -.4 .0 Wages and salaries Private wage and salary disbursements decreased $6.9 billion in July, in contrast to an increase of $45.0 billion in June. In July, average weekly hours and average hourly earnings declined, more than offsetting the effect of an increase in employment. Commodity-producing industries' payrolls increased $2.9 billion, compared with an increase of $7.0 billion; manufacturing payrolls increased $2.3 billion, compared with an increase of $3.8 billion. Distributive industries' payrolls decreased $6.6 billion, in contrast to an increase of $14.2 billion. Service industries' payrolls decreased $3.2 billion, in contrast to an increase of $23.8 billion. Government wage and salary disbursements increased $1.9 billion, compared with an increase of $1.2 billion. Other personal income Proprietors' income increased $3.5 billion in July, compared with an increase of $2.7 billion in June. Farm proprietors' income increased $1.5 billion, compared with an increase of $2.0 billion. Nonfarm proprietors' income increased $1.9 billion, compared with an increase of $0.7 billion. Transfer payments increased $3.5 billion in July, compared with an increase of $4.1 billion in June. Personal interest income increased $1.6 billion, compared with an increase of $3.9 billion. Personal taxes and disposable personal income Personal tax and nontax payments increased $0.4 billion in July, compared with an increase of $9.9 billion in June. Disposable personal income (DPI) -- personal income less personal tax and nontax payments -- increased $6.5 billion, or 0.1 percent, in July, compared with an increase of $45.3 billion, or 0.8 percent, in June. Personal outlays and personal saving Personal outlays -- personal consumption expenditures (PCE), interest paid by persons, and personal transfer payments to the rest of the world (net) -- increased $10.0 billion in July, in contrast to a decrease of $18.1 billion in June. PCE increased $9.4 billion, in contrast to a decrease of $19.3 billion. Personal saving -- disposable personal income less personal outlays -- was $295.3 billion in July, compared with $298.9 billion in June. Personal saving as a percentage of disposable personal income was 5.3 percent in both July and June. Chained (1992) dollar estimates Real DPI -- DPI adjusted to remove price changes -- decreased 0.1 percent in July, in contrast to an increase of 0.8 percent in June. Real PCE -- PCE adjusted to remove price changes -- was little changed in July, compared with a decrease of 0.4 percent in June. Purchases of durable goods decreased 1.2 percent, compared with a decrease of 2.1 percent; motor vehicle purchases more than accounted for the July decrease and accounted for about half of the June decrease. Purchases of nondurable goods increased 0.2 percent in July, in contrast to a decrease of 0.2 percent in June. Purchases of services increased 0.1 percent, in contrast to a decrease of 0.2 percent. Revisions Estimates have been revised for April through June. Changes in personal income, current-dollar and chained (1992) dollar DPI, and current-dollar and chained (1992) dollar PCE for May and June -- revised and as published in last month's release -- are shown below. Revisions for April were small. Change from preceding month May June PreviousRevisedPreviousRevised PreviousRevisedPreviousRevised (Dollars) (Percent) (Dollars) (Percent) Personal income: Current dollars. . . . 30.7 33.6 0.5 0.5 58.4 55.2 0.9 0.9 Disposable personal income: Current dollars. . . . 75.1 77.9 1.4 1.4 48.0 45.3 .9 .8 Chained (1992) dollars 61.5 63.7 1.2 1.3 40.4 38.3 .8 .8 Personal consumption expenditures: Current dollars. . . . 39.6 38.5 .8 .8 -8.1 -19.3 -.2 -.4 Chained (1992) dollars 29.4 28.3 .6 .6 -10.4 -20.4 -.2 -.4 * * * BEA estimates are available in several forms besides the printed news releases. News releases are available at the time of public release through three subscription services offered by the Commerce Department's STAT-USA. Information on how to receive releases by FAX may be obtained by calling (202) 482-1986 (voice). Information about the Economic Bulletin Board (EBB) and about Internet services may be obtained at the same voice number and on-line, as follows: EBB (202) 482-3870 Internet http://www.stat-usa.gov In addition, BEA's most frequently requested statistical series are available on the Internet, as follows: The Federal Statistics Briefing Room (FSBR) on the White House web site provides summary statistics for GDP and other major aggregates on its output, income, and international statistics pages. http://www.whitehouse.gov/fsbr The FSBR provides links to BEA's web site, which provides summary tables and charts on BEA's national, international, and regional data. http://www.bea.gov BEA's web site provides links to detailed BEA databases on STAT-USA's Internet subscription service. http://www.stat-usa.gov Summary estimates are available on recorded messages at the time of public release at the following telephone numbers: (202) 606- 5306 Gross domestic product 5303 Personal income and outlays 5362 Summary of international transactions Most of BEA's estimates and analyses appear in the Survey of Current Business, BEA's monthly journal. The 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 $90.00 domestic. Second class mail: annual subscription $49.00 domestic, $61.25 foreign; single issue $11.00 domestic, $13.75 foreign. In addition, the Survey of Current Business is now available on the Internet in a searchable, retrievable electronic format at least a week before the printed version. 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. * * * Next release -- Personal Income and Outlays for August will be released on September 30, at 8:30 A.M. EDT. Table 1. -- Personal Income [Billions of dollars] -------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ----------------------------------------------------------- 1994 1995 Feb. 96 Mar. 96 Apr. 96r May 96r June 96r July 96p -------------------------------------------------------------------------------------------------------------------------- Personal income..................... 5,753.1 6,115.1 6,315.2 6,340.1 6,371.3 6,404.9 6,460.1 6,467.1 Wage and salary disbursements..... 3,241.8 3,430.6 3,546.0 3,560.6 3,579.1 3,597.2 3,643.4 3,638.4 Private industries.............. 2,639.3 2,808.8 2,912.0 2,925.1 2,941.8 2,958.0 3,003.0 2,996.1 Commodity-producing industries 824.9 863.6 884.3 880.9 894.6 900.0 907.0 909.9 Manufacturing............... 621.1 648.4 658.6 655.3 668.3 671.9 675.7 678.0 Distributive industries....... 739.2 783.7 812.0 818.1 814.4 819.0 833.2 826.6 Service industries............ 1,075.2 1,161.6 1,215.6 1,226.1 1,232.8 1,239.0 1,262.8 1,259.6 Government...................... 602.5 621.7 634.0 635.4 637.3 639.2 640.4 642.3 Other labor income................ 402.2 424.0 429.1 430.8 432.4 434.0 435.6 437.1 Proprietors' income with IVA and CCAdj........................... 450.9 478.3 500.1 505.2 511.3 517.2 519.9 523.4 Farm............................ 35.0 29.0 38.8 40.1 43.3 46.5 48.5 50.0 Nonfarm......................... 415.9 449.3 461.3 465.1 467.9 470.7 471.4 473.3 Rental income of persons with CCAdj........................... 116.6 122.2 126.7 125.0 123.2 123.4 122.7 123.6 Personal dividend income.......... 199.6 214.8 226.5 227.9 228.7 229.4 229.9 230.8 Personal interest income.......... 663.7 717.1 725.6 724.3 727.9 733.5 737.4 739.0 Transfer payments to persons...... 956.3 1,022.6 1,062.5 1,069.0 1,072.5 1,075.4 1,079.5 1,083.0 Old-age, survivors, disability, and health insurance benefits. 472.9 507.4 529.4 534.9 534.6 536.1 538.3 539.8 Government unemployment insurance benefits............ 23.7 21.6 22.2 21.9 22.1 21.9 21.9 22.1 Other........................... 459.7 493.6 510.9 512.2 515.8 517.4 519.3 521.2 Less: Personal contributions for social insurance................ 278.1 294.5 301.5 302.7 303.9 305.2 308.3 308.2 -------------------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------ 1994 1995 Feb. 96 Mar. 96 Apr. 96r May 96r June 96r July 96p -------------------------------------------------------------------------------------------------------------------------- Personal income....................... 5,753.1 6,115.1 6,315.2 6,340.1 6,371.3 6,404.9 6,460.1 6,467.1 Less: Personal tax and nontax payments........................... 731.4 794.3 826.1 834.7 893.6 849.3 859.2 859.6 Equals: Disposable personal income... 5,021.7 5,320.8 5,489.1 5,505.5 5,477.7 5,555.6 5,600.9 5,607.4 Less: Personal outlays............... 4,832.3 5,071.5 5,229.8 5,253.2 5,280.3 5,320.2 5,302.1 5,312.1 Personal consumption expenditures... 4,700.9 4,924.9 5,071.9 5,094.7 5,120.8 5,159.3 5,140.0 5,149.4 Interest paid by persons............ 117.2 131.7 142.1 142.8 143.5 144.8 145.9 146.7 Personal transfer payments to the rest of the world (net)........... 14.2 14.9 15.7 15.7 16.1 16.1 16.1 16.1 Equals: Personal saving.............. 189.4 249.3 259.3 252.3 197.4 235.4 298.9 295.3 Addenda: Disposable personal income: Chained (1992) dollars 1/........... 4,778.2 4,945.8 5,045.2 5,044.7 5,001.9 5,065.6 5,103.9 5,098.4 Per capita: Current dollars................... 19,264 20,224 20,749 20,796 20,675 20,953 21,106 21,113 Chained (1992) dollars............ 18,330 18,799 19,071 19,055 18,879 19,105 19,233 19,197 Population (thousands).............. 260,681 263,090 264,554 264,743 264,946 265,151 265,366 265,586 Personal saving as a percentage of disposable personal income ......... 3.8 4.7 4.7 4.6 3.6 4.2 5.3 5.3 -------------------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------ 1994 1995 Feb. 96 Mar. 96 Apr. 96r May 96r June 96r July 96p -------------------------------------------------------------------------------------------------------------------- Personal income....................... 273.0 362.0 45.1 24.9 31.2 33.6 55.2 7.0 Wage and salary disbursements........ 151.1 188.8 37.9 14.6 18.5 18.1 46.2 -5.0 Private industries................ 132.9 169.5 36.4 13.1 16.7 16.2 45.0 -6.9 Commodity-producing industries.. 43.6 38.7 13.4 -3.4 13.7 5.4 7.0 2.9 Manufacturing................. 28.0 27.3 8.1 -3.3 13.0 3.6 3.8 2.3 Distributive industries......... 40.8 44.5 10.8 6.1 -3.7 4.6 14.2 -6.6 Service industries.............. 48.5 86.4 12.2 10.5 6.7 6.2 23.8 -3.2 Government........................ 18.3 19.2 1.4 1.4 1.9 1.9 1.2 1.9 Other labor income.................. 21.3 21.8 1.7 1.7 1.6 1.6 1.6 1.5 Proprietors' income with IVA and CCAdj............................. 30.9 27.4 6.9 5.1 6.1 5.9 2.7 3.5 Farm.............................. 3.0 -6.0 2.6 1.3 3.2 3.2 2.0 1.5 Nonfarm........................... 27.8 33.4 4.3 3.8 2.8 2.8 0.7 1.9 Rental income of persons with CCAdj............................. 14.1 5.6 -2.4 -1.7 -1.8 0.2 -0.7 0.9 Personal dividend income............ 12.8 15.2 1.2 1.4 0.8 0.7 0.5 0.9 Personal interest income............ 15.6 53.4 -2.8 -1.3 3.6 5.6 3.9 1.6 Transfer payments to persons........ 45.6 66.3 5.1 6.5 3.5 2.9 4.1 3.5 Old-age, survivors, disability, and health insurance benefits... 28.5 34.5 4.0 5.5 -0.3 1.5 2.2 1.5 Government unemployment insurance benefits.............. -10.3 -2.1 -0.3 -0.3 0.2 -0.2 0.0 0.2 Other............................. 27.4 33.9 1.4 1.3 3.6 1.6 1.9 1.9 Less: Personal contributions for social insurance.................. 18.5 16.4 2.6 1.2 1.2 1.3 3.1 -0.1 Less: Personal tax and nontax payments............................ 41.5 62.9 12.0 8.6 58.9 -44.3 9.9 0.4 Equals: Disposable personal income.... 231.5 299.1 33.1 16.4 -27.8 77.9 45.3 6.5 Less: Personal outlays................ 256.5 239.2 58.4 23.4 27.1 39.9 -18.1 10.0 Personal consumption expenditures... 246.8 224.0 56.9 22.8 26.1 38.5 -19.3 9.4 Interest paid by persons............ 8.3 14.5 1.4 0.7 0.7 1.3 1.1 0.8 Personal transfer payments to the rest of the world (net)........... 1.4 0.7 0.0 0.0 0.4 0.0 0.0 0.0 Equals: Personal saving............... -25.0 59.9 -25.3 -7.0 -54.9 38.0 63.5 -3.6 Addenda: Disposable personal income, chained (1992) dollars.......... 111.3 167.6 22.1 -0.5 -42.8 63.7 38.3 -5.5 -------------------------------------------------------------------------------------------------------------------- ----------------------------------------- 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 --------------------------------------------------------- 1994 1995 Feb. 96 Mar. 96 Apr. 96r May 96r June 96r July 96p ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,700.9 4,924.9 5,071.9 5,094.7 5,120.8 5,159.3 5,140.0 5,149.4 Durable goods....................... 580.9 606.4 637.6 634.2 632.4 648.3 633.6 626.3 Nondurable goods.................... 1,429.7 1,485.9 1,526.6 1,531.6 1,544.9 1,548.7 1,544.1 1,549.3 Services............................ 2,690.3 2,832.6 2,907.7 2,928.9 2,943.5 2,962.2 2,962.3 2,973.7 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,473.1 4,577.8 4,661.8 4,668.3 4,676.0 4,704.3 4,683.9 4,681.9 Durable goods....................... 562.0 579.8 611.6 607.4 608.4 626.5 613.4 606.1 Nondurable goods.................... 1,390.5 1,421.9 1,442.8 1,439.3 1,442.8 1,443.3 1,439.9 1,443.3 Services............................ 2,521.4 2,577.0 2,609.0 2,622.8 2,626.0 2,635.9 2,631.6 2,633.4 -------------------------------------------------------------------------------- Implicit price deflators (Index numbers, 1992 = 100) -------------------------------------------------------------------------------- Personal consumption expenditures..... 105.1 107.6 108.8 109.1 109.5 109.7 109.7 110.0 Durable goods....................... 103.4 104.6 104.3 104.4 103.9 103.5 103.3 103.3 Nondurable goods.................... 102.8 104.5 105.8 106.4 107.1 107.3 107.2 107.3 Services............................ 106.7 109.9 111.5 111.7 112.1 112.4 112.6 112.9 ------------------------------------------------------------------------------------------------------------------------- Change from preceding period ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 246.8 224.0 56.9 22.8 26.1 38.5 -19.3 9.4 Durable goods....................... 50.2 25.5 33.8 -3.4 -1.8 15.9 -14.7 -7.3 Nondurable goods.................... 60.8 56.2 18.3 5.0 13.3 3.8 -4.6 5.2 Services............................ 135.7 142.3 4.8 21.2 14.6 18.7 0.1 11.4 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 133.6 104.7 44.7 6.5 7.7 28.3 -20.4 -2.0 Durable goods....................... 37.9 17.8 33.0 -4.2 1.0 18.1 -13.1 -7.3 Nondurable goods.................... 41.7 31.4 16.5 -3.5 3.5 0.5 -3.4 3.4 Services............................ 54.7 55.6 -3.4 13.8 3.2 9.9 -4.3 1.8 __________________________________________________________________________________________________________________________ Table 5. -- Percent Change From Preceding Period in Selected Series -------------------------------------------------------------------------------------------------------------------------- 1994 1995 Feb. 96 Mar. 96 Apr. 96r May 96r June 96r July 96p -------------------------------------------------------------------------------------------------------------------------- Based on current dollars --------------------------------------------------------------------------------- Personal income....................... 5.0 6.3 0.7 0.4 0.5 0.5 0.9 0.1 Disposable personal income............ 4.8 6.0 0.6 0.3 -0.5 1.4 0.8 0.1 Personal consumption expenditures..... 5.5 4.8 1.1 0.4 0.5 0.8 -0.4 0.2 Durable goods....................... 9.5 4.4 5.6 -0.5 -0.3 2.5 -2.3 -1.2 Nondurable goods.................... 4.4 3.9 1.2 0.3 0.9 0.3 -0.3 0.3 Services............................ 5.3 5.3 0.2 0.7 0.5 0.6 0.0 0.4 --------------------------------------------------------------------------------- Based on chained (1992) dollars --------------------------------------------------------------------------------- Disposable personal income............ 2.4 3.5 0.4 0.0 -0.8 1.3 0.8 -0.1 Personal comsumption expenditures..... 3.1 2.3 1.0 0.1 0.2 0.6 -0.4 0.0 Durable goods....................... 7.2 3.2 5.7 -0.7 0.2 3.0 -2.1 -1.2 Nondurable goods.................... 3.1 2.3 1.2 -0.2 0.2 0.0 -0.2 0.2 Services............................ 2.2 2.2 -0.1 0.5 0.1 0.4 -0.2 0.1 -------------------------------------------------------------------------------------------------------------------------- ---------------------------------------- p Preliminary. r Revised. Source: U.S. Department of Commerce, Bureau of Economic Analysis.