FOR WIRE TRANSMISSION: 8:30 A.M. EST, MONDAY, MARCH 31, 1997 Tracey D. Schlitzer: (202) 606-5301 (Personal Income) BEA 97-08 Clinton P. McCully: 606-5302 (Personal Outlays) Recorded message: 606-5303 PERSONAL INCOME AND OUTLAYS: FEBRUARY 1997 Personal income increased $57.8 billion, or 0.9 percent, and disposable personal income (DPI) increased $48.0 billion, or 0.8 percent, in February, according to the Commerce Department's Bureau of Economic Analysis (BEA). Personal consumption expenditures (PCE) increased $18.4 billion, or 0.3 percent. In January, personal income increased $23.5 billion, or 0.4 percent, DPI increased $40.3 billion, or 0.7 percent, and PCE increased $55.0 billion, or 1.0 percent, based on revised estimates. 1996 1997 Oct. Nov. Dec. Jan. Feb. (Percent change from preceding month) Personal income, current dollars . . . . 0.1 0.6 0.7 0.4 0.9 Disposable personal income: Current dollars. . . . . . . . . . . . .1 .6 .7 .7 .8 Chained (1992) dollars . . . . . . . . -.2 .4 .5 .6 .6 Personal consumption expenditures: Current dollars. . . . . . . . . . . . .9 .4 .4 1.0 .3 Chained (1992) dollars . . . . . . . . .5 .2 .2 .9 .1 Wages and salaries Private wage and salary disbursements increased $46.3 billion in February, in contrast to a decrease of $7.7 billion in January. Employment, average hourly earnings, and average weekly hours all increased in February. Commodity-producing industries' payrolls increased $8.2 billion in February, in contrast to a decrease of $2.5 billion in January; manufacturing payrolls increased $2.7 billion, in contrast to a decrease of $3.1 billion. Distributive industries' payrolls increased $13.9 billion, in contrast to a decrease of $1.2 billion. Service industries' payrolls increased $24.1 billion, in contrast to a decrease of $4.0 billion. Government wage and salary disbursements increased $3.7 billion, compared with an increase of $6.5 billion. Other personal income Proprietors' income increased $2.4 billion in February, compared with an increase of $2.2 billion in January. Farm proprietors' income decreased $1.4 billion, compared with a decrease of $1.3 billion. Nonfarm proprietors' income increased $3.8 billion, compared with an increase of $3.5 billion. Transfer payments increased $2.8 billion in February, compared with an increase of $19.8 billion in January. The January change had been boosted by cost-of-living increases in social security benefits and other transfer payment programs. Personal interest income increased $2.6 billion in February, compared with an increase of $2.5 billion in January. Personal taxes and disposable personal income Personal tax and nontax payments increased $9.8 billion in February, in contrast to a decrease of $16.7 billion in January. In January, federal income tax payments were reduced by $12.7 billion, reflecting a decrease in net payments of estimated taxes (payments of estimated taxes plus final settlements less refunds), and by $4.0 billion, reflecting the indexation provisions of current tax law. Disposable personal income (DPI) -- personal income less personal tax and nontax payments -- increased $48.0 billion, or 0.8 percent, in February, compared with an increase of $40.3 billion, or 0.7 percent, in January. 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 $18.9 billion in February, compared with an increase of $55.8 billion in January. PCE increased $18.4 billion, compared with an increase of $55.0 billion. Personal saving -- disposable personal income less personal outlays -- was $321.9 billion in February, compared with $292.8 billion in January. Personal saving as a percentage of disposable personal income was 5.5 percent in February, compared with 5.1 percent in January. Chained (1992) dollar estimates Real DPI -- DPI adjusted to remove price changes -- increased 0.6 percent in February, the same increase as in January. Real PCE -- PCE adjusted to remove price changes -- increased 0.1 percent in February, compared with an increase of 0.9 percent in January. Purchases of durable goods increased 0.1 percent, compared with an increase of 2.5 percent. Purchases of nondurable goods increased 0.2 percent, compared with an increase of 1.0 percent. Purchases of services were unchanged, compared with an increase of 0.5 percent. Revisions Estimates have been revised for October through January. Changes in personal income, current-dollar and chained (1992) dollar DPI, and current- dollar and chained (1992) dollar PCE for December and January -- revised and as published in last month's release -- are shown below. The upward revision to January personal consumption expenditures primarily reflects large upward revisions to the retail sales source data used to derive these estimates. Revisions for October and November were small. Change from preceding month December January Previous Revised Previous Revised Previous Revised Previous Revised (Dollars) (Percent) (Dollars) (Percent) Personal income: Current dollars. . . . . . . . . 47.9 45.8 0.7 0.7 19.4 23.5 0.3 0.4 Disposable personal income: Current dollars. . . . . . . . . 38.7 37.7 .7 .7 36.5 40.3 .6 .7 Chained (1992) dollars . . . . . 26.9 27.4 .5 .5 25.3 30.1 .5 .6 Personal consumption expenditures: Current dollars. . . . . . . . . 10.6 19.7 .2 .4 37.6 55.0 .7 1.0 Chained (1992) dollars . . . . . 2.2 11.7 .0 .2 27.0 43.9 .6 .9 BEA estimates are available in several forms in addition to 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. * * * In May, BEA will release national income and produce account (NIPA) estimates reflecting the completion of the most recent comprehensive NIPA revision. Estimates to be released are: Revised NIPA estimates for 1929-58, revised estimates of reproducible tangible wealth for 1929-95, and new and revised NIPA estimates of selected series for 1959-96. BEA is revising the 1959-96 NIPA estimates primarily so that they will be consistent with newly available 1929-95 reproducible tangible wealth estimates. The largest revisions will be to the capital consumption adjustment and to consumption of fixed capital, as well as the series that depend on them, including farm and nonfarm proprietors' income and rental income of persons. Next month's personal income news release will show the revised estimates of the affected components of personal income for recent periods. The May 1997 Survey of Current Business will present summary personal income estimates for 1929-96 and all revised personal income series for 1991-96. * * * Next release -- Personal Income and Outlays for March will be released on May 1, at 8:30 A.M. EDT. Table 1. -- Personal Income [Billions of dollars] -------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ----------------------------------------------------------- 1995 1996 Sep. 96 Oct. 96r Nov. 96r Dec. 96r Jan. 97r Feb. 97p -------------------------------------------------------------------------------------------------------------------------- Personal income..................... 6,115.1 6,452.3 6,538.7 6,544.1 6,585.5 6,631.3 6,654.8 6,712.6 Wage and salary disbursements..... 3,430.6 3,630.1 3,687.2 3,682.3 3,713.5 3,752.5 3,751.2 3,801.2 Private industries.............. 2,808.8 2,988.9 3,040.4 3,035.5 3,066.3 3,105.0 3,097.3 3,143.6 Commodity-producing industries 863.6 902.7 913.1 913.8 918.7 930.2 927.7 935.9 Manufacturing............... 648.4 672.5 679.5 679.7 683.2 692.0 688.9 691.6 Distributive industries....... 783.7 827.9 841.0 836.6 848.5 854.4 853.2 867.1 Service industries............ 1,161.6 1,258.3 1,286.3 1,285.1 1,299.0 1,320.4 1,316.4 1,340.5 Government...................... 621.7 641.2 646.8 646.8 647.3 647.4 653.9 657.6 Other labor income................ 424.0 436.2 440.1 441.5 442.9 444.3 445.1 445.9 Proprietors' income with IVA and CCAdj........................... 478.3 518.3 530.4 531.2 532.1 532.8 535.0 537.4 Farm............................ 29.0 46.4 53.1 51.3 49.7 48.1 46.8 45.4 Nonfarm......................... 449.3 471.9 477.3 479.9 482.4 484.7 488.2 492.0 Rental income of persons with CCAdj........................... 122.2 126.8 128.0 128.9 128.9 128.8 128.7 129.8 Personal dividend income.......... 214.8 230.6 232.3 233.3 234.7 236.5 238.2 239.9 Personal interest income.......... 717.1 738.2 745.1 747.7 750.5 753.4 755.9 758.5 Transfer payments to persons...... 1,022.6 1,079.7 1,087.3 1,090.2 1,096.1 1,098.8 1,118.6 1,121.4 Old-age, survivors, disability, and health insurance benefits. 507.4 539.1 542.8 544.5 549.0 551.2 562.5 563.3 Government unemployment insurance benefits............ 21.6 22.1 22.0 22.0 22.0 22.2 22.5 22.3 Other........................... 493.6 518.6 522.5 523.6 525.1 525.4 533.6 535.8 Less: Personal contributions for social insurance................ 294.5 307.5 311.7 311.0 313.2 315.9 318.0 321.5 -------------------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------ 1995 1996 Sep. 96 Oct. 96r Nov. 96r Dec. 96r Jan. 97r Feb. 97p -------------------------------------------------------------------------------------------------------------------------- Personal income....................... 6,115.1 6,452.3 6,538.7 6,544.1 6,585.5 6,631.3 6,654.8 6,712.6 Less: Personal tax and nontax payments........................... 794.3 863.8 880.4 880.2 886.7 894.7 878.0 887.8 Equals: Disposable personal income... 5,320.8 5,588.5 5,658.3 5,663.9 5,698.8 5,736.5 5,776.8 5,824.8 Less: Personal outlays............... 5,071.5 5,314.0 5,339.8 5,385.9 5,408.4 5,428.2 5,484.0 5,502.9 Personal consumption expenditures... 4,924.9 5,151.4 5,175.1 5,219.5 5,240.8 5,260.5 5,315.5 5,333.9 Interest paid by persons............ 131.7 146.3 148.6 149.4 150.5 150.6 151.5 152.0 Personal transfer payments to the rest of the world (net)........... 14.9 16.3 16.2 17.1 17.1 17.1 17.1 17.1 Equals: Personal saving.............. 249.3 274.4 318.5 278.0 290.4 308.4 292.8 321.9 Addenda: Disposable personal income: Chained (1992) dollars 1/........... 4,945.8 5,088.6 5,134.0 5,123.2 5,145.9 5,173.3 5,203.4 5,232.2 Per capita: Current dollars................... 20,224 21,050 21,270 21,275 21,391 21,519 21,657 21,825 Chained (1992) dollars............ 18,799 19,167 19,299 19,244 19,316 19,406 19,508 19,604 Population (thousands).............. 263,090 265,482 266,022 266,222 266,406 266,586 266,739 266,889 Personal saving as a percentage of disposable personal income ......... 4.7 4.9 5.6 4.9 5.1 5.4 5.1 5.5 -------------------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------ 1995 1996 Sep. 96 Oct. 96r Nov. 96r Dec. 96r Jan. 97r Feb. 97p -------------------------------------------------------------------------------------------------------------------- Personal income....................... 362.0 337.2 36.2 5.4 41.4 45.8 23.5 57.8 Wage and salary disbursements........ 188.8 199.5 26.3 -4.9 31.2 39.0 -1.3 50.0 Private industries................ 169.5 180.1 23.9 -4.9 30.8 38.7 -7.7 46.3 Commodity-producing industries.. 38.7 39.1 -0.2 0.7 4.9 11.5 -2.5 8.2 Manufacturing................. 27.3 24.1 -1.2 0.2 3.5 8.8 -3.1 2.7 Distributive industries......... 44.5 44.2 8.5 -4.4 11.9 5.9 -1.2 13.9 Service industries.............. 86.4 96.7 15.6 -1.2 13.9 21.4 -4.0 24.1 Government........................ 19.2 19.5 2.4 0.0 0.5 0.1 6.5 3.7 Other labor income.................. 21.8 12.2 1.5 1.4 1.4 1.4 0.8 0.8 Proprietors' income with IVA and CCAdj............................. 27.4 40.0 4.4 0.8 0.9 0.7 2.2 2.4 Farm.............................. -6.0 17.4 0.9 -1.8 -1.6 -1.6 -1.3 -1.4 Nonfarm........................... 33.4 22.6 3.6 2.6 2.5 2.3 3.5 3.8 Rental income of persons with CCAdj............................. 5.6 4.6 1.4 0.9 0.0 -0.1 -0.1 1.1 Personal dividend income............ 15.2 15.8 0.8 1.0 1.4 1.8 1.7 1.7 Personal interest income............ 53.4 21.1 2.1 2.6 2.8 2.9 2.5 2.6 Transfer payments to persons........ 66.3 57.1 1.7 2.9 5.9 2.7 19.8 2.8 Old-age, survivors, disability, and health insurance benefits... 34.5 31.7 0.5 1.7 4.5 2.2 11.3 0.8 Government unemployment insurance benefits.............. -2.1 0.5 0.1 0.0 0.0 0.2 0.3 -0.2 Other............................. 33.9 25.0 1.1 1.1 1.5 0.3 8.2 2.2 Less: Personal contributions for social insurance.................. 16.4 13.0 1.9 -0.7 2.2 2.7 2.1 3.5 Less: Personal tax and nontax payments............................ 62.9 69.5 7.1 -0.2 6.5 8.0 -16.7 9.8 Equals: Disposable personal income.... 299.1 267.7 29.1 5.6 34.9 37.7 40.3 48.0 Less: Personal outlays................ 239.2 242.5 3.1 46.1 22.5 19.8 55.8 18.9 Personal consumption expenditures... 224.0 226.5 2.7 44.4 21.3 19.7 55.0 18.4 Interest paid by persons............ 14.5 14.6 0.4 0.8 1.1 0.1 0.9 0.5 Personal transfer payments to the rest of the world (net)........... 0.7 1.4 0.0 0.9 0.0 0.0 0.0 0.0 Equals: Personal saving............... 59.9 25.1 26.0 -40.5 12.4 18.0 -15.6 29.1 Addenda: Disposable personal income, chained (1992) dollars.......... 167.6 142.8 16.5 -10.8 22.7 27.4 30.1 28.8 -------------------------------------------------------------------------------------------------------------------- ----------------------------------------- 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 --------------------------------------------------------- 1995 1996 Sep. 96 Oct. 96r Nov. 96r Dec. 96r Jan. 97r Feb. 97p ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,924.9 5,151.4 5,175.1 5,219.5 5,240.8 5,260.5 5,315.5 5,333.9 Durable goods....................... 606.4 632.1 624.0 632.3 636.6 636.6 651.7 652.4 Nondurable goods.................... 1,485.9 1,545.1 1,552.6 1,563.0 1,566.4 1,571.1 1,590.1 1,595.5 Services............................ 2,832.6 2,974.3 2,998.5 3,024.2 3,037.8 3,052.9 3,073.7 3,086.0 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,577.8 4,690.7 4,695.5 4,721.2 4,732.3 4,744.0 4,787.9 4,791.2 Durable goods....................... 579.8 611.4 606.3 614.3 620.1 622.9 638.5 639.1 Nondurable goods.................... 1,421.9 1,442.0 1,446.3 1,449.9 1,448.1 1,447.7 1,462.6 1,465.1 Services............................ 2,577.0 2,638.3 2,643.9 2,657.9 2,664.9 2,674.0 2,688.1 2,688.4 -------------------------------------------------------------------------------- Implicit price deflators (Index numbers, 1992 = 100) -------------------------------------------------------------------------------- Personal consumption expenditures..... 107.6 109.8 110.2 110.6 110.7 110.9 111.0 111.3 Durable goods....................... 104.6 103.4 102.9 102.9 102.7 102.2 102.1 102.1 Nondurable goods.................... 104.5 107.1 107.4 107.8 108.2 108.5 108.7 108.9 Services............................ 109.9 112.7 113.4 113.8 114.0 114.2 114.3 114.8 ------------------------------------------------------------------------------------------------------------------------- Change from preceding period ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 224.0 226.5 2.7 44.4 21.3 19.7 55.0 18.4 Durable goods....................... 25.5 25.7 -18.8 8.3 4.3 0.0 15.1 0.7 Nondurable goods.................... 56.2 59.2 9.9 10.4 3.4 4.7 19.0 5.4 Services............................ 142.3 141.7 11.6 25.7 13.6 15.1 20.8 12.3 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 104.7 112.9 -6.7 25.7 11.1 11.7 43.9 3.3 Durable goods....................... 17.8 31.6 -17.0 8.0 5.8 2.8 15.6 0.6 Nondurable goods.................... 31.4 20.0 4.4 3.6 -1.8 -0.4 14.9 2.5 Services............................ 55.6 61.3 5.6 14.0 7.0 9.1 14.1 0.3 __________________________________________________________________________________________________________________________ Table 5. -- Percent Change From Preceding Period in Selected Series -------------------------------------------------------------------------------------------------------------------------- 1995 1996 Sep. 96 Oct. 96r Nov. 96r Dec. 96r Jan. 97r Feb. 97p -------------------------------------------------------------------------------------------------------------------------- Based on current dollars --------------------------------------------------------------------------------- Personal income....................... 6.3 5.5 0.6 0.1 0.6 0.7 0.4 0.9 Disposable personal income............ 6.0 5.0 0.5 0.1 0.6 0.7 0.7 0.8 Personal consumption expenditures..... 4.8 4.6 0.1 0.9 0.4 0.4 1.0 0.3 Durable goods....................... 4.4 4.2 -2.9 1.3 0.7 0.0 2.4 0.1 Nondurable goods.................... 3.9 4.0 0.6 0.7 0.2 0.3 1.2 0.3 Services............................ 5.3 5.0 0.4 0.9 0.4 0.5 0.7 0.4 --------------------------------------------------------------------------------- Based on chained (1992) dollars --------------------------------------------------------------------------------- Disposable personal income............ 3.5 2.9 0.3 -0.2 0.4 0.5 0.6 0.6 Personal consumption expenditures..... 2.3 2.5 -0.1 0.5 0.2 0.2 0.9 0.1 Durable goods....................... 3.2 5.4 -2.7 1.3 1.0 0.4 2.5 0.1 Nondurable goods.................... 2.3 1.4 0.3 0.3 -0.1 0.0 1.0 0.2 Services............................ 2.2 2.4 0.2 0.5 0.3 0.3 0.5 0.0 -------------------------------------------------------------------------------------------------------------------------- ---------------------------------------- p Preliminary. r Revised. Source: U.S. Department of Commerce, Bureau of Economic Analysis.