News Release

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, MONDAY, JANUARY 31, 2005
BEA 05-04

Personal Income and Outlays, December 2004



The entire release is available in PDF format. The tables in this release are available in an XLS spreadsheet.
Also available: a brief summary of highlights.

Note: The Microsoft Corporation paid a special dividend to shareholders of record in the fourth quarter of 2004. The dividend payments will affect the fourth-quarter estimates of personal income, corporate profits, national income, and government current receipts. More information is available.
 
                                     

James E. Rankin:       (202) 606-5301      (Personal Income)    BEA 05-04
Michael Armah:               606-5302      (Personal Outlays)
Recorded message:            606-5303


             PERSONAL INCOME AND OUTLAYS:  DECEMBER 2004

 Personal income increased $360.9 billion, or 3.7 percent, and disposable personal income (DPI)
increased $354.4 billion, or 4.0 percent, in December, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $66.4 billion, or 0.8 percent.  In November, personal
income increased $41.4 billion, or 0.4 percent, DPI increased $36.9 billion, or 0.4 percent, and PCE
increased
$31.5 billion, or 0.4 percent, based on revised estimates.



                                                                2004
                                         Aug.     Sept.     Oct.     Nov.     Dec.
                                           (Percent change from preceding month)
Personal income, current dollars         0.4      0.2       0.8      0.4      3.7
Disposable personal income:
Current dollars                          0.4      0.2       0.7      0.4      4.0
Chained (2000) dollars                   0.3      0.1       0.3      0.2      4.2
Personal consumption expenditures:
Current dollars                          0.1      0.6       0.8      0.4      0.8
Chained (2000) dollars                   0.0      0.5       0.3      0.2      0.9











     The 3.7 percent increase in December personal income mainly reflected the payment of a special
dividend by the Microsoft Corporation.  Excluding this special factor, which is discussed more fully below,
personal income increased $62.7 billion, or 0.6 percent, in December, after increasing $41.4 billion, or 0.4
percent, in November.





         This release includes revised estimates of population, per capita disposable personal income
(DPI), and per capita real DPI.  The revised population estimates reflect newly available estimates from the
Census Bureau for April 2000 through January 2005.  The revised per capita estimates reflect the
revisions to the population estimates.  Estimates for the complete revision period are available on
BEA's Web site at <www.bea.gov/bea/dn/nipaweb/SelectTable.asp?Selected=Y#S2>.



                         Wages and salaries

 Private wage and salary disbursements increased $20.0 billion in December, compared with
an increase of $9.2 billion in November.  Goods-producing industries' payrolls increased $4.1
billion, compared with an increase of $2.0 billion; manufacturing payrolls increased $2.6 billion,
compared with an increase of $0.8 billion.  Services-producing industries' payrolls increased
$15.9 billion, compared with an increase of $7.2 billion.  Government wage and salary
disbursements increased $3.2 billion, compared with an increase of $2.3 billion.

                        Other personal income

 Supplements to wages and salaries increased $4.9 billion in December, compared with an
 increase of $4.5 billion in November.

 Proprietors' income increased $13.9 billion in December, compared with an increase of
$11.5 billion in November.  Farm proprietors' income increased $2.2 billion, compared with an
increase of $3.8 billion.  Nonfarm proprietors' income increased $11.6 billion, compared with an
increase of $7.8 billion.

 Rental income of persons increased less than $0.1 billion in December, in contrast to a
decrease of $1.4 billion in November.

 Personal income receipts on assets (personal interest income plus personal dividend income)
increased $307.0 billion in December, compared with an increase of $8.8 billion in November.
Personal interest income increased $5.4 billion, compared with an increase of $5.3 billion.
Personal dividend income increased $301.7 billion, compared with an increase of $3.4 billion.
Personal dividend income was boosted $298.2 billion at an annual rate ($24.8 billion at a monthly
rate) in December by the payment of a special dividend by the Microsoft Corporation.

 Personal current transfer receipts increased $14.8 billion in December, compared with an
increase of $8.1 billion in November.  The December increase in personal current transfer
receipts reflected retroactive social security benefit payments of $7.4 billion at an annual rate,
resulting from a recalculation of the earnings base underlying the benefits for recent retirees.

 Contributions for government social insurance -- a subtraction in calculating personal income
-- increased $2.7 billion in December, compared with an increase of $1.6 billion in November.

        Personal current taxes and disposable personal income

 Personal current taxes increased $6.5 billion in December, compared with an increase of
$4.5 billion in November.  Disposable personal income (DPI) -- personal income less personal
current taxes -- increased $354.4 billion, or 4.0 percent, in December, compared with an increase
of $36.9 billion, or 0.4 percent, in November.  The increase in DPI reflected the effects of the
special dividend paid by the Microsoft Corporation.

                Personal outlays and personal saving

 Personal outlays -- PCE, personal interest payments, and personal current transfer payments
increased $69.4 billion in December, compared with an increase of $34.5 billion in November.
PCE increased $66.4 billion, compared with an increase of $31.5 billion.

 Personal saving -- DPI less personal outlays -- was $308.0 billion in December, compared
with $23.1 billion in November.  Personal saving as a percentage of disposable personal income
was 3.4 percent in December, compared with 0.3 percent in November.

                        Real DPI and real PCE

 Real DPI -- DPI adjusted to remove price changes -- increased 4.2 percent in December,
compared with an increase of 0.2 percent in November.  In December, the larger increase in real
DPI than in current-dollar DPI reflected a decrease in the PCE implicit price deflator, which is
used to deflate DPI.  The decrease in the PCE implicit price deflator was largely accounted for by
large decreases in energy prices.

 Real PCE -- PCE adjusted to remove price changes -- increased 0.9 percent in December,
compared with an increase of 0.2 percent in November.  Purchases of durable goods increased 4.3
percent, in contrast to a decrease of 0.5 percent.  Purchases of motor vehicles and parts accounted
for most of the December increase and more than accounted for the November decrease.
Purchases of nondurable goods increased 0.6 percent in December, compared with an increase of
0.3 percent in November.  Purchases of services increased 0.4 percent, compared with an increase
of 0.3 percent.

                              Revisions

 Estimates have been revised for October and November.  Changes in personal income,
current-dollar and chained (2000) dollar DPI, and current-dollar and chained (2000) 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
                       (Billions of dollars)       (Percent)       (Billions of dollars)    (Percent)
Personal Income:
Current dollars......       62.6      76.0         0.6      0.8        30.4      41.4         0.3      0.4
Disposable personal income:
Current dollars......       54.4      64.7         0.6      0.7        26.5      36.9         0.3      0.4
Chained (2000) dollars....  18.9      24.7         0.2      0.3        13.5      19.8         0.2      0.2
Personal consumption expenditures:
Current dollars......       66.5      64.7         0.8      0.8        13.5      31.5         0.2      0.4
Chained (2000) dollars....  31.2      26.1         0.4      0.3         2.0      15.3         0.0      0.2


                                    BEA's major national, international, regional, and industry estimates; the Survey of Current
Business; and BEA news releases are available without charge on BEA's Web site:

                             <www.bea.gov>

You can also subscribe to e-mail notifications of BEA's various news releases and announcements
at <www.bea.gov/newsreleases/rels.htm>.

 Summary BEA estimates are available on recorded messages at the time of public release at
the following telephone numbers:

                                (202)  606-5306   Gross domestic product
                                (202)  606-5303   Personal income and outlays
                                (202)  606-5362   U.S. international transactions

    Most of BEA's estimates and analyses appear in the Survey of Current Business, BEA's
monthly journal.  Subscriptions and single copies of the printed Survey are for sale by the
Superintendent of Documents, U.S. Government Printing Office.  Internet: <bookstore.gpo.gov>;
phone: 202-512-1800; fax: 202-512-2250; mail: Stop SSOP, Washington, DC 20402-0001.


                        *          *          *


Next release -- Personal Income and Outlays for January will be released on
                 February 28, 2005, at 8:30 A.M. EST.



Release dates in 2005
December 2004....    January 31   April 2005....   May 27        August 2005.........    September 30
January 2005.......  February 28  May 2005.....    June 30       September 2005...   October 31
February 2005.....   March 31     June 2005.....   August 2      October 2005....... December 1
March 2005.........  April 29     July 2005......  September 1   November 2005...    December 22




				    Table 1.--Personal Income and Its Disposition (Months)
                                 [Billions of dollars; months seasonally adjusted at annual rates]
-----------------------------------------------------------------------------------------------------------------------------------
                                                May 04     Jun 04     Jul 04     Aug 04     Sep 04    Oct 04/r/  Nov 04/r/  Dec 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................    9,603.8    9,624.2    9,642.6    9,679.7    9,700.7    9,776.7    9,818.1   10,179.0

  Compensation of employees, received......    6,593.0    6,594.1    6,630.4    6,657.5    6,684.2    6,721.1    6,737.2    6,765.1

    Wage and salary disbursements..........    5,325.0    5,322.7    5,353.6    5,375.1    5,396.5    5,427.8    5,439.4    5,462.5
      Private industries...................    4,403.0    4,399.5    4,427.8    4,446.4    4,466.3    4,496.1    4,505.3    4,525.3
        Goods-producing industries.........    1,038.7    1,037.9    1,040.0    1,047.6    1,051.4    1,054.9    1,056.9    1,061.0
          Manufacturing....................      683.5      682.6      683.7      689.1      690.8      690.4      691.2      693.8
        Services-producing industries......    3,364.3    3,361.6    3,387.8    3,398.8    3,414.8    3,441.2    3,448.4    3,464.3
          Trade, transportation, and
           utilities.......................      888.3      887.1      895.7      897.3      903.8      906.4      907.4      911.0
          Other services-producing
           industries......................    2,475.9    2,474.5    2,492.1    2,501.5    2,511.1    2,534.7    2,541.0    2,553.3
      Government...........................      922.0      923.2      925.8      928.7      930.2      931.7      934.0      937.2

    Supplements to wages and salaries......    1,268.0    1,271.4    1,276.9    1,282.4    1,287.8    1,293.3    1,297.8    1,302.7
      Employer contributions for employee
       pension and insurance funds.........      870.2      873.9      877.5      881.6      885.7      889.2      893.0      896.6
      Employer contributions for government
       social insurance....................      397.8      397.4      399.3      400.8      402.1      404.1      404.8      406.1

  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      901.2      909.4      905.6      904.9      898.1      920.8      932.3      946.2
    Farm...................................       19.0       19.5       15.0       13.6       12.3       18.3       22.1       24.3
    Nonfarm................................      882.2      889.9      890.6      891.3      885.8      902.5      910.3      921.9

  Rental income of persons with capital
   consumption adjustment..................      172.8      172.9      170.5      156.8      134.2      164.0      162.6      162.6

  Personal income receipts on assets.......    1,352.2    1,359.4    1,363.6    1,367.8    1,372.1    1,381.1    1,389.9    1,696.9
    Personal interest income...............      941.7      945.1      945.8      946.5      947.2      952.6      957.9      963.3
    Personal dividend income...............      410.6      414.3      417.8      421.3      424.9      428.5      431.9      733.6

  Personal current transfer receipts.......    1,400.6    1,404.1    1,392.4    1,415.7    1,438.1    1,419.9    1,428.0    1,442.8
    Government social benefits to persons..    1,371.3    1,374.8    1,363.1    1,372.9    1,381.3    1,390.7    1,398.8    1,413.6
      Old-age, survivors, disability, and
       health insurance benefits...........      774.7      774.6      778.0      782.3      786.9      790.3      794.2      805.6
      Government unemployment insurance
       benefits............................       33.3       32.6       32.0       32.6       32.5       31.3       31.0       31.0
      Other................................      563.2      567.5      553.2      558.0      561.9      569.1      573.7      577.1
    Other current transfer receipts, from
     business (net)........................       29.3       29.3       29.2       42.8       56.8       29.2       29.2       29.2

  Less: Contributions for government social
   insurance...............................      815.9      815.7      819.9      823.1      826.0      830.3      831.9      834.6

Less: Personal current taxes...............    1,032.6    1,034.6    1,039.3    1,043.6    1,048.1    1,059.4    1,063.9    1,070.4

Equals: Disposable personal income.........    8,571.2    8,589.6    8,603.3    8,636.0    8,652.6    8,717.3    8,754.2    9,108.6

Less: Personal outlays.....................    8,484.6    8,461.0    8,561.9    8,573.2    8,629.2    8,696.7    8,731.2    8,800.6

  Personal consumption expenditures........    8,189.8    8,163.3    8,259.7    8,267.6    8,320.2    8,384.9    8,416.4    8,482.8
    Durable goods..........................      999.8      958.7    1,016.0      996.5    1,008.4    1,013.2    1,007.9    1,050.8
    Nondurable goods.......................    2,364.6    2,365.8    2,375.6    2,384.0    2,402.1    2,442.6    2,450.0    2,450.3
    Services...............................    4,825.4    4,838.8    4,868.1    4,887.0    4,909.7    4,929.2    4,958.5    4,981.7
  Personal interest payments\1\............      182.6      184.9      187.8      190.6      193.5      195.9      198.4      200.8
  Personal current transfer payments.......      112.2      112.8      114.5      115.0      115.6      115.8      116.4      117.0
    To government..........................       70.2       70.7       71.2       71.8       72.4       72.9       73.5       74.1
    To the rest of the world (net).........       42.1       42.1       43.2       43.2       43.2       42.9       42.9       42.9

Equals: Personal saving....................       86.6      128.6       41.4       62.9       23.4       20.6       23.1      308.0

  Personal saving as a percentage of
   disposable personal income..............        1.0        1.5         .5         .7         .3         .2         .3        3.4

Addenda:
  Disposable personal income:
    Total, billions of chained (2000)
     dollars\2\............................    7,956.4    7,954.5    7,970.5    7,996.4    8,003.5    8,028.2    8,048.0    8,382.8
    Per capita:
      Current dollars......................     29,200     29,238     29,259     29,343     29,372     29,566     29,667     30,845
      Chained (2000) dollars...............     27,105     27,076     27,107     27,169     27,168     27,228     27,274     28,387
  Population (midperiod, thousands)\3\.....    293,537    293,783    294,042    294,315    294,587    294,846    295,083    295,303
-----------------------------------------------------------------------------------------------------------------------------------
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]
-----------------------------------------------------------------------------------------------------------------------------------
                                                  2003       2004     III 03      IV 03       I 04      II 04     III 04    IV 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................    9,161.8    9,659.1    9,209.3    9,330.0    9,445.0    9,592.7    9,674.3    9,924.6

  Compensation of employees, received......    6,289.0    6,616.6    6,324.7    6,406.7    6,487.9    6,580.0    6,657.4    6,741.1

    Wage and salary disbursements..........    5,103.6    5,342.6    5,128.6    5,188.9    5,239.2    5,312.8    5,375.0    5,443.2
      Private industries...................    4,205.6    4,416.7    4,227.5    4,283.9    4,321.8    4,389.3    4,446.8    4,508.9
        Goods-producing industries.........    1,007.7    1,039.5    1,005.8    1,025.6    1,019.0    1,034.9    1,046.3    1,057.6
          Manufacturing....................      668.8      682.5      665.9      680.1      669.9      680.5      687.9      691.8
        Services-producing industries......    3,198.0    3,377.3    3,221.6    3,258.3    3,302.9    3,354.4    3,400.5    3,451.3
          Trade, transportation, and
           utilities.......................      858.6      891.4      860.7      872.0      872.4      886.2      898.9      908.3
          Other services-producing
           industries......................    2,339.4    2,485.8    2,360.9    2,386.4    2,430.5    2,468.3    2,501.6    2,543.0
      Government...........................      897.9      925.8      901.1      905.0      917.3      923.5      928.2      934.3

    Supplements to wages and salaries......    1,185.5    1,274.1    1,196.1    1,217.8    1,248.8    1,267.2    1,282.3    1,297.9
      Employer contributions for employee
       pension and insurance funds.........      808.9      875.4      817.9      835.9      856.5      870.4      881.6      892.9
      Employer contributions for government
       social insurance....................      376.6      398.7      378.2      381.9      392.3      396.8      400.8      405.0

  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      834.1      902.4      852.0      864.7      872.1      901.4      902.9      933.1
    Farm...................................       21.8       18.0       24.8       24.7       17.9       18.9       13.6       21.6
    Nonfarm................................      812.3      884.4      827.2      840.0      854.2      882.5      889.3      911.6

  Rental income of persons with capital
   consumption adjustment..................      153.8      165.6      148.8      167.1      172.8      172.6      153.8      163.1

  Personal income receipts on assets.......    1,322.7    1,386.6    1,314.4    1,325.8    1,337.1    1,352.3    1,367.8    1,489.3
    Personal interest income...............      929.9      945.6      922.8      932.0      936.2      941.7      946.5      957.9
    Personal dividend income...............      392.8      441.1      391.6      393.8      400.9      410.6      421.3      531.4

  Personal current transfer receipts.......    1,335.4    1,406.3    1,346.2    1,350.7    1,379.0    1,400.4    1,415.4    1,430.2
    Government social benefits to persons..    1,306.4    1,373.6    1,317.4    1,322.0    1,349.6    1,371.1    1,372.5    1,401.0
      Old-age, survivors, disability, and
       health insurance benefits...........      733.8      778.8      736.6      744.9      762.1      774.0      782.4      796.7
      Government unemployment insurance
       benefits............................       52.8       34.6       54.3       51.6       41.4       33.5       32.4       31.1
      Other................................      519.8      560.2      526.5      525.5      546.1      563.6      557.7      573.3
    Other current transfer receipts, from
     business (net)........................       28.9       32.7       28.9       28.8       29.3       29.3       42.9       29.2

  Less: Contributions for government social
   insurance...............................      773.2      818.3      776.7      785.0      803.9      814.0      823.0      832.3

Less: Personal current taxes...............    1,001.9    1,036.4      941.7    1,009.4    1,006.6    1,030.6    1,043.7    1,064.5

Equals: Disposable personal income.........    8,159.9    8,622.8    8,267.6    8,320.5    8,438.4    8,562.1    8,630.7    8,860.0

Less: Personal outlays.....................    8,049.3    8,532.8    8,107.8    8,209.4    8,351.6    8,448.7    8,588.1    8,742.8

  Personal consumption expenditures........    7,760.9    8,231.1    7,822.5    7,914.9    8,060.2    8,153.8    8,282.5    8,428.1
    Durable goods..........................      950.7      995.7      972.7      971.1      976.3      975.5    1,007.0    1,023.9
    Nondurable goods.......................    2,200.1    2,376.5    2,219.2    2,250.1    2,316.6    2,354.6    2,387.2    2,447.6
    Services...............................    4,610.1    4,859.0    4,630.6    4,693.6    4,767.3    4,823.8    4,888.2    4,956.5
  Personal interest payments\1\............      185.3      188.2      183.3      185.9      181.1      182.6      190.6      198.4
  Personal current transfer payments.......      103.1      113.5      102.1      108.6      110.3      112.2      115.0      116.4
    To government..........................       64.9       71.0       65.6       67.0       68.6       70.2       71.8       73.5
    To the rest of the world (net).........       38.2       42.5       36.5       41.6       41.7       42.1       43.2       42.9

Equals: Personal saving....................      110.6       90.0      159.8      111.1       86.8      113.4       42.6      117.2

  Personal saving as a percentage of
   disposable personal income..............        1.4        1.0        1.9        1.3        1.0        1.3         .5        1.3

Addenda:
  Disposable personal income:
    Total, billions of chained (2000)
     dollars\2\............................    7,733.8    7,997.9    7,822.9    7,849.6    7,897.0    7,951.5    7,990.2    8,152.9
    Per capita:
      Current dollars......................     28,034     29,334     28,368     28,474     28,813     29,168     29,325     30,026
      Chained (2000) dollars...............     26,570     27,208     26,842     26,862     26,964     27,088     27,148     27,630
  Population (midperiod, thousands)\3\.....    291,073    293,951    291,442    292,217    292,872    293,540    294,315    295,077
-----------------------------------------------------------------------------------------------------------------------------------
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]
-----------------------------------------------------------------------------------------------------------------------------------
                                                May 04     Jun 04     Jul 04     Aug 04     Sep 04    Oct 04/r/   Nov 04/r/  Dec 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................       53.8       20.4       18.4       37.1       21.0       76.0       41.4      360.9

  Compensation of employees, received......       40.0        1.1       36.3       27.1       26.7       36.9       16.1       27.9

    Wage and salary disbursements..........       34.2       -2.3       30.9       21.5       21.4       31.3       11.6       23.1
      Private industries...................       37.4       -3.5       28.3       18.6       19.9       29.8        9.2       20.0
        Goods-producing industries.........       10.5        -.8        2.1        7.6        3.8        3.5        2.0        4.1
          Manufacturing....................        8.2        -.9        1.1        5.4        1.7        -.4         .8        2.6
        Services-producing industries......       26.9       -2.7       26.2       11.0       16.0       26.4        7.2       15.9
          Trade, transportation, and
           utilities.......................        5.2       -1.2        8.6        1.6        6.5        2.6        1.0        3.6
          Other services-producing
           industries......................       21.6       -1.4       17.6        9.4        9.6       23.6        6.3       12.3
      Government...........................       -3.2        1.2        2.6        2.9        1.5        1.5        2.3        3.2

    Supplements to wages and salaries......        5.8        3.4        5.5        5.5        5.4        5.5        4.5        4.9
      Employer contributions for employee
       pension and insurance funds.........        3.2        3.7        3.6        4.1        4.1        3.5        3.8        3.6
      Employer contributions for government
       social insurance....................        2.6        -.4        1.9        1.5        1.3        2.0         .7        1.3

  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................        7.7        8.2       -3.8        -.7       -6.8       22.7       11.5       13.9
    Farm...................................         .7         .5       -4.5       -1.4       -1.3        6.0        3.8        2.2
    Nonfarm................................        6.9        7.7         .7         .7       -5.5       16.7        7.8       11.6

  Rental income of persons with capital
   consumption adjustment..................         .8         .1       -2.4      -13.7      -22.6       29.8       -1.4         .0

  Personal income receipts on assets.......        6.8        7.2        4.2        4.2        4.3        9.0        8.8      307.0
    Personal interest income...............        3.5        3.4         .7         .7         .7        5.4        5.3        5.4
    Personal dividend income...............        3.5        3.7        3.5        3.5        3.6        3.6        3.4      301.7

  Personal current transfer receipts.......        4.0        3.5      -11.7       23.3       22.4      -18.2        8.1       14.8
    Government social benefits to persons..        4.0        3.5      -11.7        9.8        8.4        9.4        8.1       14.8
      Old-age, survivors, disability, and
       health insurance benefits...........        2.0        -.1        3.4        4.3        4.6        3.4        3.9       11.4
      Government unemployment insurance
       benefits............................       -1.2        -.7        -.6         .6        -.1       -1.2        -.3         .0
      Other................................        3.1        4.3      -14.3        4.8        3.9        7.2        4.6        3.4
    Other current transfer receipts, from
     business (net)........................         .0         .0        -.1       13.6       14.0      -27.6         .0         .0

  Less: Contributions for government social
   insurance...............................        5.4        -.2        4.2        3.2        2.9        4.3        1.6        2.7

Less: Personal current taxes...............        8.1        2.0        4.7        4.3        4.5       11.3        4.5        6.5

Equals: Disposable personal income.........       45.8       18.4       13.7       32.7       16.6       64.7       36.9      354.4

Less: Personal outlays.....................       84.2      -23.6      100.9       11.3       56.0       67.5       34.5       69.4

  Personal consumption expenditures........       81.5      -26.5       96.4        7.9       52.6       64.7       31.5       66.4
    Durable goods..........................       31.9      -41.1       57.3      -19.5       11.9        4.8       -5.3       42.9
    Nondurable goods.......................       31.4        1.2        9.8        8.4       18.1       40.5        7.4         .3
    Services...............................       18.2       13.4       29.3       18.9       22.7       19.5       29.3       23.2
  Personal interest payments\1\............        2.3        2.3        2.9        2.8        2.9        2.4        2.5        2.4
  Personal current transfer payments.......         .5         .6        1.7         .5         .6         .2         .6         .6
    To government..........................         .6         .5         .5         .6         .6         .5         .6         .6
    To the rest of the world (net).........         .0         .0        1.1         .0         .0        -.3         .0         .0

Equals: Personal saving....................      -38.5       42.0      -87.2       21.5      -39.5       -2.8        2.5      284.9

Addendum:
  Real disposable personal income, billions
   of chained (2000) dollars\2\............       12.6       -1.9       16.0       25.9        7.1       24.7       19.8      334.8
-----------------------------------------------------------------------------------------------------------------------------------
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]
-----------------------------------------------------------------------------------------------------------------------------------
                                                  2003       2004     III 03      IV 03       I 04      II 04     III 04    IV 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................      282.9      497.3      103.6      120.7      115.0      147.7       81.6      250.3

  Compensation of employees, received......      219.5      327.6       77.7       82.0       81.2       92.1       77.4       83.7

    Wage and salary disbursements..........      127.3      239.0       55.3       60.3       50.3       73.6       62.2       68.2
      Private industries...................       91.9      211.1       51.9       56.4       37.9       67.5       57.5       62.1
        Goods-producing industries.........       -2.5       31.8        6.1       19.8       -6.6       15.9       11.4       11.3
          Manufacturing....................       -6.4       13.7        2.5       14.2      -10.2       10.6        7.4        3.9
        Services-producing industries......       94.5      179.3       45.7       36.7       44.6       51.5       46.1       50.8
          Trade, transportation, and
           utilities.......................       15.0       32.8        7.8       11.3         .4       13.8       12.7        9.4
          Other services-producing
           industries......................       79.5      146.4       38.0       25.5       44.1       37.8       33.3       41.4
      Government...........................       35.3       27.9        3.3        3.9       12.3        6.2        4.7        6.1

    Supplements to wages and salaries......       92.3       88.6       22.4       21.7       31.0       18.4       15.1       15.6
      Employer contributions for employee
       pension and insurance funds.........       79.3       66.5       18.9       18.0       20.6       13.9       11.2       11.3
      Employer contributions for government
       social insurance....................       13.0       22.1        3.6        3.7       10.4        4.5        4.0        4.2

  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................       64.5       68.3       26.3       12.7        7.4       29.3        1.5       30.2
    Farm...................................       12.1       -3.8         .7        -.1       -6.8        1.0       -5.3        8.0
    Nonfarm................................       52.4       72.1       25.6       12.8       14.2       28.3        6.8       22.3

  Rental income of persons with capital
   consumption adjustment..................      -17.1       11.8        4.7       18.3        5.7        -.2      -18.8        9.3

  Personal income receipts on assets.......      -11.9       63.9      -10.3       11.4       11.3       15.2       15.5      121.5
    Personal interest income...............      -16.8       15.7       -9.6        9.2        4.2        5.5        4.8       11.4
    Personal dividend income...............        4.9       48.3        -.7        2.2        7.1        9.7       10.7      110.1

  Personal current transfer receipts.......       52.7       70.9       13.1        4.5       28.3       21.4       15.0       14.8
    Government social benefits to persons..       57.5       67.2       13.3        4.6       27.6       21.5        1.4       28.5
      Old-age, survivors, disability, and
       health insurance benefits...........       25.5       45.0        5.5        8.3       17.2       11.9        8.4       14.3
      Government unemployment insurance
       benefits............................        -.4      -18.2        -.5       -2.7      -10.2       -7.9       -1.1       -1.3
      Other................................       32.3       40.4        8.2       -1.0       20.6       17.5       -5.9       15.6
    Other current transfer receipts, from
     business (net)........................       -4.8        3.8        -.1        -.1         .5         .0       13.6      -13.7

  Less: Contributions for government social
   insurance...............................       24.9       45.1        7.8        8.3       18.9       10.1        9.0        9.3

Less: Personal current taxes...............      -49.3       34.5      -89.0       67.7       -2.8       24.0       13.1       20.8

Equals: Disposable personal income.........      332.2      462.9      192.6       52.9      117.9      123.7       68.6      229.3

Less: Personal outlays.....................      380.8      483.5      124.9      101.6      142.2       97.1      139.4      154.7

  Personal consumption expenditures........      384.8      470.2      126.2       92.4      145.3       93.6      128.7      145.6
    Durable goods..........................       34.5       45.0       25.9       -1.6        5.2        -.8       31.5       16.9
    Nondurable goods.......................      120.0      176.4       55.6       30.9       66.5       38.0       32.6       60.4
    Services...............................      230.3      248.9       44.7       63.0       73.7       56.5       64.4       68.3
  Personal interest payments\1\............      -11.9        2.9       -1.5        2.6       -4.8        1.5        8.0        7.8
  Personal current transfer payments.......        7.8       10.4         .3        6.5        1.7        1.9        2.8        1.4
    To government..........................        5.4        6.1        1.4        1.4        1.6        1.6        1.6        1.7
    To the rest of the world (net).........        2.5        4.3       -1.1        5.1         .1         .4        1.1        -.3

Equals: Personal saving....................      -48.6      -20.6       67.7      -48.7      -24.3       26.6      -70.8       74.6

Addendum:
  Real disposable personal income, billions
   of chained (2000) dollars\2\............      174.3      264.1      151.8       26.7       47.4       54.5       38.7      162.7
-----------------------------------------------------------------------------------------------------------------------------------
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]
-----------------------------------------------------------------------------------------------------------------------------------
                                                May 04     Jun 04     Jul 04     Aug 04     Sep 04    Oct 04/r/   Nov 04/r/   Dec 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................         .6         .2         .2         .4         .2         .8         .4        3.7
  Compensation of employees, received......         .6         .0         .6         .4         .4         .6         .2         .4
    Wage and salary disbursements..........         .6         .0         .6         .4         .4         .6         .2         .4
    Supplements to wages and salaries......         .5         .3         .4         .4         .4         .4         .3         .4
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................         .9         .9        -.4        -.1        -.8        2.5        1.2        1.5
  Rental income of persons with capital
   consumption adjustment..................         .5         .1       -1.4       -8.0      -14.4       22.2        -.9         .0
  Personal income receipts on assets.......         .5         .5         .3         .3         .3         .7         .6       22.1
    Personal interest income...............         .4         .4         .1         .1         .1         .6         .6         .6
    Personal dividend income...............         .8         .9         .9         .8         .9         .9         .8       69.8
  Personal current transfer receipts.......         .3         .2        -.8        1.7        1.6       -1.3         .6        1.0

  Less: Contributions for government social
   insurance...............................         .7         .0         .5         .4         .4         .5         .2         .3

Less: Personal current taxes...............         .8         .2         .5         .4         .4        1.1         .4         .6

Equals: Disposable personal income.........         .5         .2         .2         .4         .2         .7         .4        4.0

Addenda:
  Personal consumption expenditures........        1.0        -.3        1.2         .1         .6         .8         .4         .8
    Durable goods..........................        3.3       -4.1        6.0       -1.9        1.2         .5        -.5        4.3
    Nondurable goods.......................        1.3         .1         .4         .4         .8        1.7         .3         .0
    Services...............................         .4         .3         .6         .4         .5         .4         .6         .5

  Real disposable personal income..........         .2         .0         .2         .3         .1         .3         .2        4.2
-----------------------------------------------------------------------------------------------------------------------------------
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]
-----------------------------------------------------------------------------------------------------------------------------------
                                                  2003       2004     III 03      IV 03       I 04      II 04     III 04    IV 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................        3.2        5.4        4.6        5.3        5.0        6.4        3.4       10.8
  Compensation of employees, received......        3.6        5.2        5.1        5.3        5.2        5.8        4.8        5.1
    Wage and salary disbursements..........        2.6        4.7        4.4        4.8        3.9        5.7        4.8        5.2
    Supplements to wages and salaries......        8.4        7.5        7.9        7.5       10.6        6.0        4.9        4.9
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................        8.4        8.2       13.4        6.1        3.5       14.1         .7       14.1
  Rental income of persons with capital
   consumption adjustment..................      -10.0        7.6       13.6       59.0       14.6        -.6      -36.8       26.3
  Personal income receipts on assets.......        -.9        4.8       -3.1        3.5        3.5        4.6        4.7       40.5
    Personal interest income...............       -1.8        1.7       -4.1        4.1        1.8        2.4        2.1        4.9
    Personal dividend income...............        1.3       12.3        -.7        2.2        7.4       10.1       10.8      153.0
  Personal current transfer receipts.......        4.1        5.3        4.0        1.3        8.6        6.4        4.3        4.3

  Less: Contributions for government social
   insurance...............................        3.3        5.8        4.1        4.3       10.0        5.1        4.5        4.6

Less: Personal current taxes...............       -4.7        3.4      -30.3       32.0       -1.1        9.9        5.2        8.2

Equals: Disposable personal income.........        4.2        5.7        9.9        2.6        5.8        6.0        3.2       11.1

Addenda:
  Personal consumption expenditures........        5.2        6.1        6.7        4.8        7.5        4.7        6.5        7.2
    Durable goods..........................        3.8        4.7       11.4        -.6        2.2        -.4       13.6        6.9
    Nondurable goods.......................        5.8        8.0       10.7        5.7       12.3        6.7        5.7       10.5
    Services...............................        5.3        5.4        4.0        5.6        6.4        4.8        5.5        5.7

  Real disposable personal income..........        2.3        3.4        8.2        1.4        2.4        2.8        2.0        8.4
-----------------------------------------------------------------------------------------------------------------------------------

                        Table 7.--Real Personal Consumption Expenditures by Major Type of Product (Months)
                                   [Months seasonally adjusted at annual rates except as noted]
-----------------------------------------------------------------------------------------------------------------------------------
                                                May 04     Jun 04     Jul 04     Aug 04     Sep 04    Oct 04/r/  Nov 04/r/  Dec 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........    7,602.4    7,559.7    7,652.2    7,655.2    7,696.0    7,722.1    7,737.4    7,806.8
  Durable goods............................    1,101.2    1,057.1    1,124.8    1,108.9    1,121.1    1,124.8    1,118.7    1,166.3
  Nondurable goods.........................    2,192.3    2,184.9    2,202.8    2,211.3    2,225.5    2,235.7    2,242.9    2,255.3
  Services.................................    4,323.3    4,324.9    4,342.2    4,349.7    4,365.5    4,377.8    4,390.4    4,407.3
                                           ----------------------------------------------------------------------------------------
                                                                       Change from preceding period in
                                                                      billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........       47.2      -42.7       92.5        3.0       40.8       26.1       15.3       69.4
  Durable goods............................       35.4      -44.1       67.7      -15.9       12.2        3.7       -6.1       47.6
  Nondurable goods.........................        5.4       -7.4       17.9        8.5       14.2       10.2        7.2       12.4
  Services.................................       11.6        1.6       17.3        7.5       15.8       12.3       12.6       16.9
                                           ----------------------------------------------------------------------------------------
                                                                   Percent change from preceding period in
                                                                   chained (2000) dollars at monthly rates
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........         .6        -.6        1.2         .0         .5         .3         .2         .9
  Durable goods............................        3.3       -4.0        6.4       -1.4        1.1         .3        -.5        4.3
  Nondurable goods.........................         .2        -.3         .8         .4         .6         .5         .3         .6
  Services.................................         .3         .0         .4         .2         .4         .3         .3         .4
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary.
r Revised.

                  Table 8.--Real Personal Consumption Expenditures by Major Type of Product (Years and Quarters)
                                          [Quarters seasonally adjusted at annual rates]
-----------------------------------------------------------------------------------------------------------------------------------
                                                  2003       2004     III 03      IV 03       I 04      II 04     III 04    IV 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........    7,355.6    7,634.7    7,401.7    7,466.8    7,543.0    7,572.4    7,667.8    7,755.4
  Durable goods............................    1,030.6    1,101.3    1,059.6    1,069.7    1,075.5    1,074.7    1,118.3    1,136.6
  Nondurable goods.........................    2,112.4    2,208.3    2,125.3    2,152.0    2,187.3    2,188.0    2,213.2    2,244.7
  Services.................................    4,220.3    4,339.0    4,227.9    4,256.7    4,291.7    4,320.0    4,352.4    4,391.8
                                           ----------------------------------------------------------------------------------------
                                                                       Change from preceding period in
                                                                      billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........      232.2      279.1       90.3       65.1       76.2       29.4       95.4       87.6
  Durable goods............................       71.0       70.7       39.6       10.1        5.8        -.8       43.6       18.3
  Nondurable goods.........................       75.0       95.9       35.2       26.7       35.3         .7       25.2       31.5
  Services.................................       91.7      118.7       20.2       28.8       35.0       28.3       32.4       39.4
                                           ----------------------------------------------------------------------------------------
                                                                   Percent change from preceding period in
                                                                    chained (2000) dollars at annual rates
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........        3.3        3.8        5.0        3.6        4.1        1.6        5.1        4.6
  Durable goods............................        7.4        6.9       16.5        3.9        2.2        -.3       17.2        6.7
  Nondurable goods.........................        3.7        4.5        6.9        5.1        6.7         .1        4.7        5.8
  Services.................................        2.2        2.8        1.9        2.8        3.3        2.7        3.0        3.7
-----------------------------------------------------------------------------------------------------------------------------------

      Table 9.--Price Indexes for Personal Consumption Expenditures: Level and Percent Change From Preceding Period (Months)
-----------------------------------------------------------------------------------------------------------------------------------
                                                May 04     Jun 04     Jul 04     Aug 04     Sep 04    Oct 04/r/  Nov 04/r/  Dec 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
                                           ----------------------------------------------------------------------------------------
                                                                     Chain-type price indexes (2000=100),
                                                                             seasonally adjusted
                                           ----------------------------------------------------------------------------------------

Personal consumption expenditures
 (PCE).....................................    107.732    107.989    107.943    108.004    108.116    108.588    108.780    108.664
  Durable goods............................     90.753     90.645     90.291     89.827     89.904     90.034     90.050     90.057
  Nondurable goods.........................    107.868    108.286    107.848    107.815    107.944    109.258    109.237    108.648
  Services.................................    111.619    111.885    112.115    112.358    112.470    112.600    112.945    113.039
Addenda:
  PCE excluding food and energy............    106.508    106.625    106.661    106.726    106.872    107.059    107.243    107.242
  Market-based PCE\1\......................    107.339    107.676    107.623    107.666    107.732    108.263    108.470    108.380
  Market-based PCE excluding food
   and energy\1\...........................    105.768    105.955    105.999    106.043    106.139    106.342    106.543    106.600
                                           ----------------------------------------------------------------------------------------
                                                                     Percent change from preceding period
                                                                      in price indexes at monthly rates
                                           ----------------------------------------------------------------------------------------
PCE........................................         .4         .2         .0         .1         .1         .4         .2        -.1
  Durable goods............................         .0        -.1        -.4        -.5         .1         .1         .0         .0
  Nondurable goods.........................        1.1         .4        -.4         .0         .1        1.2         .0        -.5
  Services.................................         .1         .2         .2         .2         .1         .1         .3         .1
Addenda:
  PCE excluding food and energy............         .1         .1         .0         .1         .1         .2         .2         .0
  Market-based PCE\1\......................         .4         .3         .0         .0         .1         .5         .2        -.1
  Market-based PCE excluding food
   and energy\1\...........................         .1         .2         .0         .0         .1         .2         .2         .1
-----------------------------------------------------------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------------------------------------------------
                                                May 04     Jun 04     Jul 04     Aug 04     Sep 04    Oct 04/r/   Nov 04/r/  Dec 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
Disposable personal income.................        3.6        3.3        2.0        1.6        2.8        2.8        2.4        6.4

Personal consumption expenditures..........        4.1        3.0        3.8        3.0        4.0        4.1        3.5        4.0
  Durable goods............................        8.0        3.2        7.9        3.1        5.7        7.9        4.7        6.2
  Nondurable goods.........................        5.3        3.8        4.1        3.4        4.9        4.6        3.7        4.5
  Services.................................        2.7        2.6        2.8        2.9        3.2        3.2        3.1        3.3
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary.
r Revised.

              Table 11.--Price Indexes for Personal Consumption Expenditures: Percent Change From Month One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------
                                                May 04     Jun 04     Jul 04     Aug 04     Sep 04    Oct 04/r/   Nov 04/r/  Dec 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
Personal consumption expenditures
 (PCE).....................................        2.4        2.5        2.4        2.2        2.1        2.5        2.7        2.4
  Durable goods............................       -2.1       -1.9       -2.0       -2.2       -1.6       -1.1        -.8        -.5
  Nondurable goods.........................        4.5        4.7        4.0        3.2        2.7        4.3        4.7        3.9
  Services.................................        2.3        2.4        2.5        2.6        2.6        2.4        2.5        2.2
Addenda:
  PCE excluding food and energy............        1.5        1.5        1.4        1.5        1.6        1.6        1.6        1.5
  Market-based PCE\1\......................        2.5        2.7        2.5        2.2        2.0        2.6        2.9        2.7
  Market-based PCE excluding food
   and energy\1\...........................        1.4        1.6        1.4        1.4        1.4        1.5        1.7        1.7
-----------------------------------------------------------------------------------------------------------------------------------
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.