EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, OCTOBER 31, 2008 James E. Rankin: (202) 606-5301 (Personal Income)BEA 08-49 Brendan Leary: (202) 606-5302 (Personal Outlays) PERSONAL INCOME AND OUTLAYS: SEPTEMBER 2008 Personal income increased $24.5 billion, or 0.2 percent, and disposable personal income (DPI) increased $25.7 billion, or 0.2 percent, in September, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) decreased $33.6 billion, or 0.3 percent. In August, personal income increased $44.8 billion, or 0.4 percent, DPI decreased $107.7 billion, or 1.0 percent, and PCE increased $4.5 billion, or less than 0.1 percent, based on revised estimates. Excluding the rebate payments under the Economic Stimulus Act of 2008, DPI increased $30.3 billion, or 0.3 percent in September, and increased $44.0 billion, or 0.4 percent in August. Real DPI increased 0.1 percent in September, in contrast to a decrease of 1.0 percent in August. Real PCE decreased 0.4 percent, in contrast to an increase of less than 0.1 percent. 2008 May June July Aug. Sept. (Percent change from preceding month) Personal income, current dollars 1.9 0.1 -0.8 0.4 0.2 Disposable personal income: Current dollars 5.7 -1.8 -1.0 -1.0 0.2 Chained (2000) dollars 5.3 -2.5 -1.6 -1.0 0.1 Personal consumption expenditures: Current dollars 0.7 0.5 0.0 0.0 -0.3 Chained (2000) dollars 0.2 -0.2 -0.6 0.0 -0.4 The September estimate of personal income reflects the effects of Hurricane Ike, which struck the Gulf Coast region, especially impacting coastal Texas and Louisiana, on September 13, 2008. Rental income of persons was reduced by about $27 billion (at an annual rate) and proprietors' income was reduced by about $9 billion (at an annual rate) to reflect uninsured losses of residential and business property. "Other current transfer receipts from business (net)" was boosted by about $27 billion (at an annual rate) to reflect insurance benefits paid to persons. The net effect of these adjustments was to lower September personal income $8.5 billion. Because other effects of the hurricane were embedded in BEA's source data and could not be separately identified, BEA did not attempt to quantify their impact. For more information on how disasters are treated in the national accounts, see FAQs on "Disasters" on BEA's Web site. Wages and salaries Private wage and salary disbursements increased $0.3 billion in September, compared with an increase of $24.1 billion in August. Goods-producing industries' payrolls decreased $4.0 billion, in contrast to an increase of $5.1 billion; manufacturing payrolls decreased $2.6 billion, compared with a decrease of $1.3 billion. Services-producing industries' payrolls increased $4.3 billion, compared with an increase of $19.0 billion. Government wage and salary disbursements increased $4.0 billion, compared with an increase of $4.6 billion. Other personal income Supplements to wages and salaries increased $1.2 billion in September, compared with an increase of $3.1 billion in August. Proprietors' income decreased $3.4 billion in September, compared with a decrease of $10.8 billion in August. Farm proprietors' income decreased $3.5 billion, compared with a decrease of $3.3 billion. Nonfarm proprietors' income increased $0.1 billion, in contrast to a decrease of $7.5 billion. Nonfarm proprietors' income was reduced $8.8 billion (at an annual rate) in September to reflect uninsured losses of business property from the impact of Hurricane Ike. (Proprietors' income is reported net of such losses.) Rental income of persons decreased $24.0 billion in September, in contrast to an increase of $2.4 billion in August. Rental income was reduced $26.6 billion (at an annual rate) in September to reflect uninsured losses of residential property from the impacts of the hurricane. Personal income receipts on assets (personal interest income plus personal dividend income) increased $9.1 billion in September, compared with an increase of $8.9 billion in August. Personal current transfer receipts increased $37.3 billion in September, compared with an increase of $15.6 billion in August. Personal current transfer receipts was boosted $26.9 billion (at an annual rate) in September to reflect increases in insurance benefits paid to persons for damage to insured property from the impact of Hurricane Ike. The September and August changes reflected provisions of the Supplemental Appropriations Act of 2008, which provided up to 13 weeks of additional unemployment compensation benefits to those who exhausted their regular unemployment benefits. The additional unemployment benefits boosted the level of personal current transfer receipts by $19.2 billion in September, by $17.6 billion in August, and by $4.3 billion in July. The September and August changes also reflected provisions of the Economic Stimulus Act of 2008, which boosted the level of personal current transfer receipts by $3.9 billion (at an annual rate) in September, by $5.1 billion in August, and by $4.2 billion in July (see the box on page 6). Contributions for government social insurance -- a subtraction in calculating personal income -- decreased $0.1 billion in September, in contrast to an increase of $3.2 billion in August. Personal current taxes and disposable personal income Personal current taxes decreased $1.1 billion in September, in contrast to an increase of $152.4 billion in August. Provisions of the Economic Stimulus Act reduced the level of personal taxes by $3.9 billion (at an annual rate) in September, by $7.3 billion in August, and by $159.9 billion in July. The reduction in current personal taxes reflected rebate payments to eligible individual taxpayers (see the box on page 6). Disposable personal income (DPI) -- personal income less personal current taxes -- increased $25.7 billion, or 0.2 percent, in September, in contrast to a decrease of $107.7 billion, or 1.0 percent, in August. Personal outlays and personal saving Personal outlays -- PCE, personal interest payments, and personal current transfer payments decreased $32.0 billion in September, in contrast to an increase of $6.0 billion in August. PCE decreased $33.6 billion, in contrast to an increase of $4.5 billion. Personal saving -- DPI less personal outlays -- was $140.3 billion in September, compared with $82.5 billion in August. Personal saving as a percentage of disposable personal income was 1.3 percent in September, compared with 0.8 percent in August. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods. For more information, see the FAQs on "Personal Saving" on BEA's Web site. For a comparison of personal saving in BEA's national income and product accounts with personal saving in the Federal Reserve Board's flow of funds accounts, go to http://www.bea.gov/bea/dn/nipaweb/Nipa-Frb.asp. Real DPI and real PCE Real DPI -- DPI adjusted to remove price changes -- increased 0.1 percent in September, in contrast to a decrease of 1.0 percent in August. Excluding the rebate payments under the Economic Stimulus Act of 2008, which increased government social benefit payments and reduced personal current taxes, real DPI increased 0.2 percent in September, and increased 0.4 percent in August. Real PCE -- PCE adjusted to remove price changes -- decreased 0.4 percent in September, in contrast to an increase of less than 0.1 percent in August. Purchases of durable goods decreased 2.9 percent, in contrast to an increase of 1.9 percent. Purchases of motor vehicles and parts accounted for most of the decrease in September and more than accounted the increase in August. Purchases of nondurable goods decreased 0.8 percent in September, compared with a decrease of 0.3 percent in August. Purchases of services increased 0.2 percent, in contrast to a decrease of 0.1 percent. PCE price index - - The price index for PCE increased 0.1 percent in September, compared with an increase of less than 0.1 percent in August. The PCE price index, excluding food and energy increased 0.2 percent in September, the same increase as in August. Revisions Estimates have been revised for July and August. Changes in personal income, current-dollar and chained (2000) dollar DPI, and current-dollar and chained (2000) dollar PCE for July and August -- revised and as published in last month's release -- are shown below. Change from preceding month July August Previous Revised Previous Revised Previous Revised Previous Revised (Billions of dollars) (Percent) (Billions of dollars) (Percent) Personal Income: Current dollars..................... -69.0 -92.7 -0.6 -0.8 61.5 44.8 0.5 0.4 Disposable personal income: Current dollars..................... -91.0 -106.6 -0.8 -1.0 -93.3 -107.7 -0.9 -1.0 Chained (2000) dollars.............. -130.5 -140.5 -1.5 -1.6 -78.8 -89.3 -0.9 -1.0 Personal consumption expenditures: Current dollars..................... 14.2 2.5 0.1 0.0 3.9 4.5 0.0 0.0 Chained (2000) dollars.............. -41.4 -48.4 -0.5 -0.6 0.3 1.9 0.0 0.0 Economic Stimulus Act of 2008 The Economic Stimulus Act of 2008 provides rebate payments to eligible individual taxpayers as well as tax reductions for businesses. For individuals, the amount of the rebate is determined by information reported on tax filings for 2007 and is based on filing status, level of adjusted gross income, and the number of qualifying children. According to the Joint Committee on Taxation and the Congressional Budget Office, rebates to individuals are expected to total $106.7 billion for fiscal year 2008. The majority of rebates were sent during the initial round of payments, which began April 28, 2008, and continued on a weekly basis through mid-July 2008. In the NIPAs, rebates for residents of the 50 states and the District of Columbia are recorded as either an offset to personal current taxes or as a social benefit payment to persons. Rebates for individuals with tax liabilities that exceed the rebate amount are treated as an offset to personal current taxes in the NIPAs. Rebates for individuals who pay no income taxes (or for whom the rebate would exceed the amount of the income taxes they do pay) are treated as a government social benefit payment to persons in the NIPAs. BEA's national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. * * * Next release -- November 26, 2008, at 8:30 A.M. EST for Personal Income and Outlays for October. Table 1.--Personal Income and Its Disposition (Months) [Billions of dollars; months seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 11,952.4 11,999.0 12,033.6 12,258.4 12,274.6 12,181.9 12,226.7 12,251.2 Compensation of employees, received...... 8,005.2 8,039.4 8,049.3 8,073.5 8,092.5 8,112.6 8,144.4 8,149.8 Wage and salary disbursements.......... 6,513.0 6,545.7 6,549.9 6,570.3 6,585.7 6,602.7 6,631.4 6,635.6 Private industries................... 5,402.9 5,432.2 5,431.8 5,446.7 5,457.4 5,468.9 5,493.0 5,493.3 Goods-producing industries......... 1,215.9 1,221.2 1,214.2 1,216.4 1,218.3 1,221.6 1,226.7 1,222.7 Manufacturing.................... 747.2 750.0 747.2 748.7 749.6 751.0 749.7 747.1 Services-producing industries...... 4,187.0 4,211.0 4,217.6 4,230.3 4,239.0 4,247.3 4,266.3 4,270.6 Trade, transportation, and utilities....................... 1,047.4 1,053.9 1,049.1 1,048.2 1,050.6 1,049.8 1,052.2 1,051.9 Other services-producing industries...................... 3,139.6 3,157.1 3,168.5 3,182.1 3,188.4 3,197.5 3,214.1 3,218.7 Government........................... 1,110.1 1,113.4 1,118.1 1,123.6 1,128.4 1,133.8 1,138.4 1,142.4 Supplements to wages and salaries...... 1,492.3 1,493.7 1,499.4 1,503.2 1,506.8 1,509.9 1,513.0 1,514.2 Employer contributions for employee pension and insurance funds......... 1,016.2 1,015.7 1,021.5 1,024.4 1,027.4 1,029.8 1,031.3 1,032.6 Employer contributions for government social insurance.................... 476.1 478.0 477.9 478.8 479.4 480.1 481.7 481.6 Proprietors' income with inventory valuation and capital consumption adjustments............................. 1,069.1 1,071.4 1,071.2 1,076.1 1,083.5 1,088.3 1,077.5 1,074.1 Farm................................... 42.1 41.0 39.4 38.4 36.1 34.5 31.2 27.7 Nonfarm................................ 1,027.0 1,030.4 1,031.9 1,037.7 1,047.4 1,053.8 1,046.3 1,046.4 Rental income of persons with capital consumption adjustment.................. 38.8 40.5 49.1 58.3 68.3 70.7 73.1 49.1 Personal income receipts on assets....... 2,054.2 2,051.7 2,051.8 2,052.3 2,052.8 2,061.6 2,070.5 2,079.6 Personal interest income............... 1,224.6 1,217.2 1,213.0 1,208.7 1,204.5 1,218.4 1,232.3 1,246.2 Personal dividend income............... 829.6 834.5 838.8 843.6 848.3 843.2 838.2 833.4 Personal current transfer receipts....... 1,776.6 1,791.3 1,807.5 1,995.3 1,976.0 1,848.8 1,864.4 1,901.7 Government social benefits to persons.. 1,744.3 1,758.9 1,775.1 1,962.9 1,943.5 1,816.3 1,831.8 1,842.2 Old-age, survivors, disability, and health insurance benefits........... 1,030.6 1,042.5 1,041.0 1,051.8 1,057.0 1,067.4 1,067.5 1,072.0 Government unemployment insurance benefits............................ 38.2 39.3 40.6 41.5 42.0 47.6 62.5 66.1 Other................................ 675.5 677.1 693.5 869.6 844.5 701.4 701.8 704.0 Other current transfer receipts, from business (net)........................ 32.3 32.4 32.4 32.4 32.4 32.5 32.6 59.5 Less: Contributions for government social insurance............................... 991.5 995.3 995.2 997.2 998.5 1,000.1 1,003.3 1,003.2 Less: Personal current taxes............... 1,534.1 1,540.2 1,533.6 1,156.2 1,372.4 1,386.3 1,538.7 1,537.6 Equals: Disposable personal income......... 10,418.3 10,458.8 10,500.0 11,102.1 10,902.2 10,795.6 10,687.9 10,713.6 Less: Personal outlays..................... 10,385.2 10,436.3 10,474.2 10,544.3 10,595.9 10,599.4 10,605.4 10,573.4 Personal consumption expenditures........ 9,982.7 10,039.7 10,073.5 10,144.2 10,196.4 10,198.9 10,203.4 10,169.8 Durable goods.......................... 1,075.4 1,065.3 1,063.2 1,065.5 1,049.1 1,017.1 1,034.8 1,003.0 Nondurable goods....................... 2,935.1 2,970.2 2,990.4 3,025.4 3,063.0 3,068.8 3,050.3 3,032.0 Services............................... 5,972.2 6,004.2 6,019.9 6,053.3 6,084.2 6,113.0 6,118.3 6,134.8 Personal interest payments\1\............ 261.7 255.6 254.7 253.8 252.9 254.0 255.1 256.2 Personal current transfer payments....... 140.8 141.0 146.1 146.4 146.7 146.5 146.9 147.4 To government.......................... 82.9 83.1 83.4 83.7 84.0 84.4 84.8 85.3 To the rest of the world (net)......... 57.9 57.9 62.7 62.7 62.7 62.1 62.1 62.1 Equals: Personal saving.................... 33.0 22.5 25.8 557.8 306.2 196.2 82.5 140.3 Personal saving as a percentage of disposable personal income.............. .3 .2 .2 5.0 2.8 1.8 .8 1.3 Addenda: Disposable personal income: Total, billions of chained (2000) dollars\2\............................ 8,666.9 8,673.8 8,687.5 9,144.0 8,911.3 8,770.8 8,681.5 8,693.2 Per capita: Current dollars...................... 34,286 34,396 34,507 36,458 35,771 35,391 35,007 35,059 Chained (2000) dollars............... 28,522 28,526 28,550 30,028 29,239 28,753 28,435 28,447 Population (midperiod, thousands)\3\..... 303,866 304,068 304,287 304,521 304,775 305,039 305,311 305,590 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised 1. Consists of nonmortgage interest paid by households. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. 3. Population is the total population of the United States, including the Armed Forces overseas and the institutionalized population. The monthly estimate is the average of estimates for the first of the month and the first of the following month; the annual and quarterly estimates are averages of the monthly estimates. Table 2.--Personal Income and Its Disposition (Years and Quarters) [Billions of dollars; quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2006 2007 II 07 III 07 IV 07 I 08 II 08 III 08 ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 10,993.9 11,663.2 11,577.5 11,730.4 11,872.1 11,960.5 12,188.9 12,219.9 Compensation of employees, received...... 7,432.6 7,818.6 7,760.1 7,839.3 7,941.0 8,009.7 8,071.8 8,135.6 Wage and salary disbursements.......... 6,027.2 6,362.0 6,310.7 6,377.7 6,465.5 6,518.0 6,568.6 6,623.2 Private industries................... 5,004.2 5,286.7 5,242.5 5,297.0 5,373.4 5,408.3 5,445.3 5,485.1 Goods-producing industries......... 1,167.2 1,205.4 1,200.7 1,204.3 1,218.2 1,217.7 1,216.3 1,223.7 Manufacturing.................... 731.2 746.0 744.0 743.4 750.2 748.4 748.5 749.2 Services-producing industries...... 3,837.1 4,081.3 4,041.9 4,092.6 4,155.3 4,190.5 4,229.0 4,261.4 Trade, transportation, and utilities....................... 986.7 1,035.2 1,036.5 1,035.3 1,048.3 1,050.4 1,049.3 1,051.3 Other services-producing industries...................... 2,850.4 3,046.1 3,005.4 3,057.4 3,106.9 3,140.2 3,179.7 3,210.1 Government........................... 1,023.0 1,075.2 1,068.1 1,080.8 1,092.1 1,109.7 1,123.4 1,138.2 Supplements to wages and salaries...... 1,405.3 1,456.6 1,449.4 1,461.6 1,475.5 1,491.7 1,503.1 1,512.4 Employer contributions for employee pension and insurance funds......... 956.8 991.9 987.7 996.5 1,005.9 1,015.3 1,024.4 1,031.2 Employer contributions for government social insurance.................... 448.5 464.7 461.7 465.1 469.6 476.4 478.7 481.1 Proprietors' income with inventory valuation and capital consumption adjustments............................. 1,014.7 1,056.2 1,050.2 1,063.8 1,073.8 1,071.7 1,076.9 1,080.0 Farm................................... 16.2 44.0 42.3 47.4 47.1 41.6 38.0 31.2 Nonfarm................................ 998.6 1,012.2 1,007.9 1,016.4 1,026.7 1,030.1 1,039.0 1,048.8 Rental income of persons with capital consumption adjustment.................. 44.3 40.0 44.6 41.8 38.6 39.1 58.6 64.3 Personal income receipts on assets....... 1,824.8 2,000.1 1,982.5 2,030.9 2,056.2 2,054.1 2,052.3 2,070.6 Personal interest income............... 1,125.4 1,214.3 1,206.1 1,236.2 1,242.7 1,224.6 1,208.7 1,232.3 Personal dividend income............... 699.4 785.8 776.5 794.7 813.5 829.5 843.6 838.3 Personal current transfer receipts....... 1,603.0 1,713.3 1,699.2 1,720.6 1,737.8 1,778.1 1,926.3 1,871.6 Government social benefits to persons.. 1,578.1 1,681.4 1,667.5 1,688.0 1,704.7 1,745.8 1,893.9 1,830.1 Old-age, survivors, disability, and health insurance benefits........... 938.9 999.4 997.5 1,008.8 1,009.6 1,032.4 1,050.0 1,069.0 Government unemployment insurance benefits............................ 29.9 32.3 31.2 32.5 34.3 38.2 41.4 58.7 Other................................ 609.3 649.6 638.8 646.7 660.9 675.3 802.5 702.4 Other current transfer receipts, from business (net)........................ 24.9 31.9 31.7 32.5 33.1 32.2 32.4 41.5 Less: Contributions for government social insurance............................... 925.5 965.1 959.1 966.0 975.3 992.2 997.0 1,002.2 Less: Personal current taxes............... 1,353.2 1,492.8 1,489.4 1,501.6 1,520.5 1,535.0 1,354.1 1,487.5 Equals: Disposable personal income......... 9,640.7 10,170.5 10,088.0 10,228.8 10,351.5 10,425.5 10,834.8 10,732.4 Less: Personal outlays..................... 9,570.0 10,113.1 10,056.9 10,182.0 10,309.2 10,404.9 10,538.2 10,592.7 Personal consumption expenditures........ 9,207.2 9,710.2 9,657.5 9,765.6 9,892.7 10,002.3 10,138.0 10,190.7 Durable goods.......................... 1,052.1 1,082.8 1,085.3 1,086.2 1,083.0 1,071.0 1,059.3 1,018.3 Nondurable goods....................... 2,685.2 2,833.0 2,817.7 2,846.6 2,906.2 2,950.7 3,026.2 3,050.4 Services............................... 5,469.9 5,794.4 5,754.4 5,832.8 5,903.5 5,980.6 6,052.5 6,122.0 Personal interest payments\1\............ 235.4 265.4 262.6 278.2 276.7 261.7 253.8 255.1 Personal current transfer payments....... 127.4 137.5 136.9 138.1 139.8 140.8 146.4 146.9 To government.......................... 76.2 81.2 80.8 81.8 82.5 82.9 83.7 84.8 To the rest of the world (net)......... 51.1 56.3 56.0 56.3 57.3 57.9 62.7 62.1 Equals: Personal saving.................... 70.7 57.4 31.1 46.8 42.4 20.6 296.6 139.7 Personal saving as a percentage of disposable personal income.............. .7 .6 .3 .5 .4 .2 2.7 1.3 Addenda: Disposable personal income: Total, billions of chained (2000) dollars\2\............................ 8,407.0 8,644.0 8,604.5 8,671.1 8,683.1 8,667.9 8,914.6 8,715.1 Per capita: Current dollars...................... 32,222 33,667 33,441 33,820 34,138 34,309 35,579 35,152 Chained (2000) dollars............... 28,098 28,614 28,523 28,669 28,636 28,525 29,274 28,545 Population (midperiod, thousands)\3\..... 299,199 302,087 301,667 302,452 303,225 303,868 304,528 305,313 ----------------------------------------------------------------------------------------------------------------------------------- 1. Consists of nonmortgage interest paid by households. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. 3. Population is the total population of the United States, including the Armed Forces overseas and the institutionalized population. The monthly estimate is the average of estimates for the first of the month and the first of the following month; the annual and quarterly estimates are averages of the monthly estimates. Table 3.--Personal Income and Its Disposition, Change from Preceding Period (Months) [Billions of dollars; months seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 22.4 46.6 34.6 224.8 16.2 -92.7 44.8 24.5 Compensation of employees, received...... 20.6 34.2 9.9 24.2 19.0 20.1 31.8 5.4 Wage and salary disbursements.......... 17.6 32.7 4.2 20.4 15.4 17.0 28.7 4.2 Private industries................... 13.2 29.3 -.4 14.9 10.7 11.5 24.1 .3 Goods-producing industries......... -.1 5.3 -7.0 2.2 1.9 3.3 5.1 -4.0 Manufacturing.................... -.7 2.8 -2.8 1.5 .9 1.4 -1.3 -2.6 Services-producing industries...... 13.4 24.0 6.6 12.7 8.7 8.3 19.0 4.3 Trade, transportation, and utilities....................... -2.4 6.5 -4.8 -.9 2.4 -.8 2.4 -.3 Other services-producing industries...................... 15.8 17.5 11.4 13.6 6.3 9.1 16.6 4.6 Government........................... 4.4 3.3 4.7 5.5 4.8 5.4 4.6 4.0 Supplements to wages and salaries...... 3.0 1.4 5.7 3.8 3.6 3.1 3.1 1.2 Employer contributions for employee pension and insurance funds......... 2.2 -.5 5.8 2.9 3.0 2.4 1.5 1.3 Employer contributions for government social insurance.................... .9 1.9 -.1 .9 .6 .7 1.6 -.1 Proprietors' income with inventory valuation and capital consumption adjustments............................. -5.4 2.3 -.2 4.9 7.4 4.8 -10.8 -3.4 Farm................................... .4 -1.1 -1.6 -1.0 -2.3 -1.6 -3.3 -3.5 Nonfarm................................ -5.8 3.4 1.5 5.8 9.7 6.4 -7.5 .1 Rental income of persons with capital consumption adjustment.................. .7 1.7 8.6 9.2 10.0 2.4 2.4 -24.0 Personal income receipts on assets....... -2.2 -2.5 .1 .5 .5 8.8 8.9 9.1 Personal interest income............... -7.4 -7.4 -4.2 -4.3 -4.2 13.9 13.9 13.9 Personal dividend income............... 5.2 4.9 4.3 4.8 4.7 -5.1 -5.0 -4.8 Personal current transfer receipts....... 10.3 14.7 16.2 187.8 -19.3 -127.2 15.6 37.3 Government social benefits to persons.. 10.1 14.6 16.2 187.8 -19.4 -127.2 15.5 10.4 Old-age, survivors, disability, and health insurance benefits........... 6.5 11.9 -1.5 10.8 5.2 10.4 .1 4.5 Government unemployment insurance benefits............................ 1.2 1.1 1.3 .9 .5 5.6 14.9 3.6 Other................................ 2.4 1.6 16.4 176.1 -25.1 -143.1 .4 2.2 Other current transfer receipts, from business (net)........................ .2 .1 .0 .0 .0 .1 .1 26.9 Less: Contributions for government social insurance............................... 1.7 3.8 -.1 2.0 1.3 1.6 3.2 -.1 Less: Personal current taxes............... 3.5 6.1 -6.6 -377.4 216.2 13.9 152.4 -1.1 Equals: Disposable personal income......... 18.9 40.5 41.2 602.1 -199.9 -106.6 -107.7 25.7 Less: Personal outlays..................... -7.9 51.1 37.9 70.1 51.6 3.5 6.0 -32.0 Personal consumption expenditures........ -1.9 57.0 33.8 70.7 52.2 2.5 4.5 -33.6 Durable goods.......................... 2.9 -10.1 -2.1 2.3 -16.4 -32.0 17.7 -31.8 Nondurable goods....................... -11.8 35.1 20.2 35.0 37.6 5.8 -18.5 -18.3 Services............................... 6.9 32.0 15.7 33.4 30.9 28.8 5.3 16.5 Personal interest payments\1\............ -6.2 -6.1 -.9 -.9 -.9 1.1 1.1 1.1 Personal current transfer payments....... .2 .2 5.1 .3 .3 -.2 .4 .5 To government.......................... .2 .2 .3 .3 .3 .4 .4 .5 To the rest of the world (net)......... .0 .0 4.8 .0 .0 -.6 .0 .0 Equals: Personal saving.................... 26.7 -10.5 3.3 532.0 -251.6 -110.0 -113.7 57.8 Addendum: Real disposable personal income, billions of chained (2000) dollars\2\............ 4.1 6.9 13.7 456.5 -232.7 -140.5 -89.3 11.7 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised 1. Consists of nonmortgage interest paid by households. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. Table 4.--Personal Income and Its Disposition, Change from Preceding Period (Years and Quarters) [Billions of dollars; quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2006 2007 II 07 III 07 IV 07 I 08 II 08 III 08 ----------------------------------------------------------------------------------------------------------------------------------- Personal income............................ 724.1 669.3 104.5 152.9 141.7 88.4 228.4 31.0 Compensation of employees, received...... 406.8 386.0 26.1 79.2 101.7 68.7 62.1 63.8 Wage and salary disbursements.......... 355.5 334.8 16.7 67.0 87.8 52.5 50.6 54.6 Private industries................... 313.3 282.5 8.5 54.5 76.4 34.9 37.0 39.8 Goods-producing industries......... 68.0 38.2 2.3 3.6 13.9 -.5 -1.4 7.4 Manufacturing.................... 27.2 14.8 -2.4 -.6 6.8 -1.8 .1 .7 Services-producing industries...... 245.4 244.2 6.3 50.7 62.7 35.2 38.5 32.4 Trade, transportation, and utilities....................... 48.5 48.5 15.7 -1.2 13.0 2.1 -1.1 2.0 Other services-producing industries...................... 196.9 195.7 -9.4 52.0 49.5 33.3 39.5 30.4 Government........................... 42.3 52.2 8.2 12.7 11.3 17.6 13.7 14.8 Supplements to wages and salaries...... 51.2 51.3 9.4 12.2 13.9 16.2 11.4 9.3 Employer contributions for employee pension and insurance funds......... 30.8 35.1 10.1 8.8 9.4 9.4 9.1 6.8 Employer contributions for government social insurance.................... 20.4 16.2 -.6 3.4 4.5 6.8 2.3 2.4 Proprietors' income with inventory valuation and capital consumption adjustments............................. 54.9 41.5 13.0 13.6 10.0 -2.1 5.2 3.1 Farm................................... -17.9 27.8 3.0 5.1 -.3 -5.5 -3.6 -6.8 Nonfarm................................ 72.9 13.6 10.0 8.5 10.3 3.4 8.9 9.8 Rental income of persons with capital consumption adjustment.................. 3.4 -4.3 9.5 -2.8 -3.2 .5 19.5 5.7 Personal income receipts on assets....... 227.9 175.3 51.6 48.4 25.3 -2.1 -1.8 18.3 Personal interest income............... 103.4 88.9 33.9 30.1 6.5 -18.1 -15.9 23.6 Personal dividend income............... 124.5 86.4 17.8 18.2 18.8 16.0 14.1 -5.3 Personal current transfer receipts....... 82.3 110.3 3.5 21.4 17.2 40.3 148.2 -54.7 Government social benefits to persons.. 96.2 103.3 2.2 20.5 16.7 41.1 148.1 -63.8 Old-age, survivors, disability, and health insurance benefits........... 94.4 60.5 15.6 11.3 .8 22.8 17.6 19.0 Government unemployment insurance benefits............................ -1.4 2.4 -.1 1.3 1.8 3.9 3.2 17.3 Other................................ 3.2 40.3 -13.3 7.9 14.2 14.4 127.2 -100.1 Other current transfer receipts, from business (net)........................ -13.9 7.0 1.3 .8 .6 -.9 .2 9.1 Less: Contributions for government social insurance............................... 51.2 39.6 -.7 6.9 9.3 16.9 4.8 5.2 Less: Personal current taxes............... 145.4 139.6 29.9 12.2 18.9 14.5 -180.9 133.4 Equals: Disposable personal income......... 578.7 529.8 74.5 140.8 122.7 74.0 409.3 -102.4 Less: Personal outlays..................... 540.5 543.1 152.7 125.1 127.2 95.7 133.3 54.5 Personal consumption expenditures........ 513.1 503.0 132.6 108.1 127.1 109.6 135.7 52.7 Durable goods.......................... 31.3 30.7 8.7 .9 -3.2 -12.0 -11.7 -41.0 Nondurable goods....................... 171.1 147.8 56.2 28.9 59.6 44.5 75.5 24.2 Services............................... 310.7 324.5 67.6 78.4 70.7 77.1 71.9 69.5 Personal interest payments\1\............ 20.4 30.0 18.6 15.6 -1.5 -15.0 -7.9 1.3 Personal current transfer payments....... 7.0 10.1 1.6 1.2 1.7 1.0 5.6 .5 To government.......................... 3.7 5.0 1.2 1.0 .7 .4 .8 1.1 To the rest of the world (net)......... 3.2 5.2 .3 .3 1.0 .6 4.8 -.6 Equals: Personal saving.................... 38.2 -13.3 -78.2 15.7 -4.4 -21.8 276.0 -156.9 Addendum: Real disposable personal income, billions of chained (2000) dollars\2\............ 285.6 237.0 -13.2 66.6 12.0 -15.2 246.7 -199.5 ----------------------------------------------------------------------------------------------------------------------------------- 1. Consists of nonmortgage interest paid by households. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. Table 5.--Personal Income and Its Disposition, Percent Change from Preceding Period (Months) [Months seasonally adjusted at monthly rates] ----------------------------------------------------------------------------------------------------------------------------------- Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Based on current-dollar measures ---------------------------------------------------------------------------------------- Personal income............................ .2 .4 .3 1.9 .1 -.8 .4 .2 Compensation of employees, received...... .3 .4 .1 .3 .2 .2 .4 .1 Wage and salary disbursements.......... .3 .5 .1 .3 .2 .3 .4 .1 Supplements to wages and salaries...... .2 .1 .4 .3 .2 .2 .2 .1 Proprietors' income with inventory valuation and capital consumption adjustments............................. -.5 .2 .0 .5 .7 .4 -1.0 -.3 Rental income of persons with capital consumption adjustment.................. 1.8 4.6 21.0 18.9 17.0 3.6 3.4 -32.8 Personal income receipts on assets....... -.1 -.1 .0 .0 .0 .4 .4 .4 Personal interest income............... -.6 -.6 -.3 -.3 -.4 1.2 1.1 1.1 Personal dividend income............... .6 .6 .5 .6 .6 -.6 -.6 -.6 Personal current transfer receipts....... .6 .8 .9 10.4 -1.0 -6.4 .8 2.0 Less: Contributions for government social insurance............................... .2 .4 .0 .2 .1 .2 .3 .0 Less: Personal current taxes............... .2 .4 -.4 -24.6 18.7 1.0 11.0 -.1 Equals: Disposable personal income......... .2 .4 .4 5.7 -1.8 -1.0 -1.0 .2 Addenda: Personal consumption expenditures........ .0 .6 .3 .7 .5 .0 .0 -.3 Durable goods.......................... .3 -.9 -.2 .2 -1.5 -3.1 1.7 -3.1 Nondurable goods....................... -.4 1.2 .7 1.2 1.2 .2 -.6 -.6 Services............................... .1 .5 .3 .6 .5 .5 .1 .3 ---------------------------------------------------------------------------------------- Based on chained (2000) dollar measures ---------------------------------------------------------------------------------------- Real disposable personal income.......... .0 .1 .2 5.3 -2.5 -1.6 -1.0 .1 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised Table 6.--Personal Income and Its Disposition, Percent Change from Preceding Period (Years and Quarters) [Quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2006 2007 II 07 III 07 IV 07 I 08 II 08 III 08 ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Based on current-dollar measures ---------------------------------------------------------------------------------------- Personal income............................ 7.1 6.1 3.7 5.4 4.9 3.0 7.9 1.0 Compensation of employees, received...... 5.8 5.2 1.4 4.1 5.3 3.5 3.1 3.2 Wage and salary disbursements.......... 6.3 5.6 1.1 4.3 5.6 3.3 3.1 3.4 Supplements to wages and salaries...... 3.8 3.7 2.7 3.4 3.9 4.5 3.1 2.5 Proprietors' income with inventory valuation and capital consumption adjustments............................. 5.7 4.1 5.1 5.3 3.8 -.8 2.0 1.1 Rental income of persons with capital consumption adjustment.................. 8.3 -9.6 161.0 -22.7 -27.3 5.3 401.3 45.4 Personal income receipts on assets....... 14.3 9.6 11.1 10.1 5.1 -.4 -.3 3.6 Personal interest income............... 10.1 7.9 12.1 10.4 2.1 -5.7 -5.1 8.0 Personal dividend income............... 21.7 12.4 9.7 9.8 9.8 8.1 7.0 -2.5 Personal current transfer receipts....... 5.4 6.9 .8 5.1 4.1 9.6 37.8 -10.9 Less: Contributions for government social insurance............................... 5.9 4.3 -.3 2.9 3.9 7.1 2.0 2.1 Less: Personal current taxes............... 12.0 10.3 8.5 3.3 5.1 3.9 -39.4 45.6 Equals: Disposable personal income......... 6.4 5.5 3.0 5.7 4.9 2.9 16.7 -3.7 Addenda: Personal consumption expenditures........ 5.9 5.5 5.7 4.6 5.3 4.5 5.5 2.1 Durable goods.......................... 3.1 2.9 3.3 .3 -1.2 -4.3 -4.3 -14.6 Nondurable goods....................... 6.8 5.5 8.4 4.2 8.7 6.3 10.6 3.2 Services............................... 6.0 5.9 4.8 5.6 4.9 5.3 4.9 4.7 ---------------------------------------------------------------------------------------- Based on chained (2000) dollar measures ---------------------------------------------------------------------------------------- Real disposable personal income.......... 3.5 2.8 -.6 3.1 .6 -.7 11.9 -8.7 ----------------------------------------------------------------------------------------------------------------------------------- Table 7.--Real Personal Consumption Expenditures by Major Type of Product (Months) ----------------------------------------------------------------------------------------------------------------------------------- Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Billions of chained (2000) dollars, seasonally adjusted at annual rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 8,304.6 8,326.2 8,334.6 8,355.1 8,334.4 8,286.0 8,287.9 8,251.9 Durable goods............................ 1,241.8 1,229.5 1,230.8 1,237.1 1,217.0 1,179.0 1,201.6 1,166.9 Nondurable goods......................... 2,388.3 2,410.1 2,419.0 2,427.3 2,415.9 2,392.1 2,384.6 2,365.5 Services................................. 4,699.6 4,707.3 4,705.7 4,712.8 4,717.9 4,720.6 4,714.7 4,722.5 ---------------------------------------------------------------------------------------- Change from preceding period in billions of chained (2000) dollars, seasonally adjusted at annual rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... -12.7 21.6 8.4 20.5 -20.7 -48.4 1.9 -36.0 Durable goods............................ 2.1 -12.3 1.3 6.3 -20.1 -38.0 22.6 -34.7 Nondurable goods......................... -7.1 21.8 8.9 8.3 -11.4 -23.8 -7.5 -19.1 Services................................. -6.6 7.7 -1.6 7.1 5.1 2.7 -5.9 7.8 ---------------------------------------------------------------------------------------- Percent change from preceding period in chained (2000) dollars, seasonally adjusted at monthly rates ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... -.2 .3 .1 .2 -.2 -.6 .0 -.4 Durable goods............................ .2 -1.0 .1 .5 -1.6 -3.1 1.9 -2.9 Nondurable goods......................... -.3 .9 .4 .3 -.5 -1.0 -.3 -.8 Services................................. -.1 .2 .0 .2 .1 .1 -.1 .2 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised Table 8.--Real Personal Consumption Expenditures by Major Type of Product (Years and Quarters) [Quarters seasonally adjusted at annual rates] ----------------------------------------------------------------------------------------------------------------------------------- 2006 2007 II 07 III 07 IV 07 I 08 II 08 III 08 ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Billions of chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 8,029.0 8,252.8 8,237.3 8,278.5 8,298.2 8,316.1 8,341.3 8,275.2 Durable goods............................ 1,185.1 1,242.4 1,242.3 1,249.4 1,250.6 1,237.0 1,228.3 1,182.5 Nondurable goods......................... 2,335.3 2,392.6 2,391.5 2,398.6 2,400.2 2,397.9 2,420.7 2,380.7 Services................................. 4,529.9 4,646.2 4,632.7 4,659.8 4,676.1 4,704.3 4,712.1 4,719.2 ---------------------------------------------------------------------------------------- Change from preceding period in billions of chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 237.3 223.8 40.1 41.2 19.7 17.9 25.2 -66.1 Durable goods............................ 50.7 57.3 15.0 7.1 1.2 -13.6 -8.7 -45.8 Nondurable goods......................... 82.6 57.3 11.4 7.1 1.6 -2.3 22.8 -40.0 Services................................. 109.0 116.3 16.6 27.1 16.3 28.2 7.8 7.1 ---------------------------------------------------------------------------------------- Percent change from preceding period in chained (2000) dollars ---------------------------------------------------------------------------------------- Personal consumption expenditures.......... 3.0 2.8 2.0 2.0 1.0 .9 1.2 -3.1 Durable goods............................ 4.5 4.8 5.0 2.3 .4 -4.3 -2.8 -14.1 Nondurable goods......................... 3.7 2.5 1.9 1.2 .3 -.4 3.9 -6.4 Services................................. 2.5 2.6 1.4 2.4 1.4 2.4 .7 .6 ----------------------------------------------------------------------------------------------------------------------------------- Table 9.--Price Indexes for Personal Consumption Expenditures: Level and Percent Change From Preceding Period (Months) ----------------------------------------------------------------------------------------------------------------------------------- Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- Chain-type price indexes (2000=100), seasonally adjusted ---------------------------------------------------------------------------------------- Personal consumption expenditures (PCE).... 120.212 120.585 120.869 121.419 122.346 123.092 123.118 123.247 Durable goods............................ 86.598 86.636 86.382 86.123 86.205 86.264 86.110 85.955 Nondurable goods......................... 122.903 123.245 123.625 124.646 126.793 128.296 127.923 128.183 Services................................. 127.083 127.557 127.934 128.451 128.967 129.503 129.777 129.912 Addenda: PCE excluding food and energy............ 116.141 116.357 116.532 116.742 117.072 117.368 117.631 117.838 Market-based PCE\1\...................... 118.392 118.701 119.003 119.578 120.574 121.366 121.310 121.418 Market-based PCE excluding food and energy\1\........................... 113.029 113.134 113.309 113.482 113.775 114.037 114.249 114.446 ---------------------------------------------------------------------------------------- Percent change from preceding period in price indexes, seasonally adjusted at monthly rates ---------------------------------------------------------------------------------------- PCE........................................ .1 .3 .2 .5 .8 .6 .0 .1 Durable goods............................ .1 .0 -.3 -.3 .1 .1 -.2 -.2 Nondurable goods......................... -.1 .3 .3 .8 1.7 1.2 -.3 .2 Services................................. .3 .4 .3 .4 .4 .4 .2 .1 Addenda: PCE excluding food and energy............ .1 .2 .2 .2 .3 .3 .2 .2 Market-based PCE\1\...................... .1 .3 .3 .5 .8 .7 .0 .1 Market-based PCE excluding food and energy\1\........................... .1 .1 .2 .2 .3 .2 .2 .2 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised 1. This index is a supplemental measure that is based on household expenditures for which there are observable price measures. It excludes most implicit prices (for example, the services furnished without payment by financial intermediaries) and the expenses of nonprofit institutions. Table 10.--Real Disposable Personal Income and Real Personal Consumption Expenditures: Percent Change From Month One Year Ago ----------------------------------------------------------------------------------------------------------------------------------- Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Disposable personal income................. .5 .4 .9 6.4 3.5 1.5 .0 .0 Personal consumption expenditures.......... 1.2 1.5 1.3 1.4 1.1 .3 .0 -.4 Durable goods............................ 1.4 -.3 -.1 -1.7 -1.6 -4.4 -4.3 -7.4 Nondurable goods......................... .5 .9 1.5 1.4 .7 -.6 -.2 -1.4 Services................................. 1.4 2.2 1.5 2.0 1.7 1.5 .9 1.4 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised Table 11.--Price Indexes for Personal Consumption Expenditures: Percent Change From Month One Year Ago ----------------------------------------------------------------------------------------------------------------------------------- Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08\r\ Aug 08\r\ Sep 08\p\ ----------------------------------------------------------------------------------------------------------------------------------- Personal consumption expenditures (PCE).... 3.5 3.4 3.4 3.5 4.1 4.5 4.5 4.2 Durable goods............................ -1.4 -1.2 -1.2 -1.3 -1.3 -1.1 -.9 -.9 Nondurable goods......................... 6.1 5.6 5.5 5.6 7.2 8.2 8.0 7.7 Services................................. 3.1 3.3 3.3 3.4 3.5 3.8 3.7 3.4 Addenda: PCE excluding food and energy............ 2.1 2.2 2.2 2.2 2.3 2.5 2.5 2.4 Market-based PCE\1\...................... 3.4 3.3 3.3 3.5 4.1 4.6 4.6 4.3 Market-based PCE excluding food and energy\1\........................... 1.7 1.7 1.8 1.9 2.0 2.1 2.2 2.2 ----------------------------------------------------------------------------------------------------------------------------------- p Preliminary r Revised 1. This index is a supplemental measure that is based on household expenditures for which there are observable price measures. It excludes most implicit prices (for example, the services furnished without payment by financial intermediaries) and the expenses of nonprofit institutions.