News Release

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, MONDAY, FEBRUARY 28, 2005
BEA 05-07

Personal Income and Outlays, January 2005



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.

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James E. Rankin:       (202) 606-5301      (Personal Income)BEA 05-07
Michael Armah:         (202) 606-5302      (Personal Outlays)
Recorded message:      (202) 606-5303


             PERSONAL INCOME AND OUTLAYS:  JANUARY 2005

 Personal income decreased $238.6 billion, or 2.3 percent, and disposable personal income (DPI)
decreased $241.4 billion, or 2.6 percent, in January, according to the Bureau of Economic Analysis.  Personal
consumption expenditures (PCE) decreased $3.9 billion, or less than 0.1 percent.  In December, personal
income increased $368.2 billion, or 3.7 percent, DPI increased $360.7 billion, or 4.1 percent, and PCE
increased $70.2 billion, or 0.8 percent, based on revised estimates.

                                                          2004                2005
                                         Sept.     Oct.     Nov.     Dec.     Jan.
                                           (Percent change from preceding month)
Personal income, current dollars          0.2      0.8      0.4      3.7     -2.3
Disposable personal income:
Current dollars                           0.2      0.7      0.4      4.1     -2.6
Chained (2000) dollars                    0.1      0.3      0.2      4.2     -2.8
Personal consumption expenditures:
Current dollars                           0.6      0.7      0.4      0.8      0.0
Chained (2000) dollars                    0.5      0.3      0.2      0.9     -0.2







       The 2.3 percent decrease in January personal income mainly reflected the effect of the payment of a
special dividend by the Microsoft Corporation, which had boosted personal income in December.
Excluding this special factor and others, which are discussed more fully below, personal income increased
$52.3 billion, or 0.5 percent, in January, after increasing $62.6 billion, or 0.6 percent in December.





         This news release also presents revised estimates of wages and salaries, personal current taxes,
and contributions for government social insurance for July through September 2004 (third quarter).


                                    Compensation of employees

 Private wage and salary disbursements increased $22.3 billion in January, compared with an
increase of $28.4 billion in December.  Goods-producing industries' payrolls increased $0.2
billion, compared with an increase of $4.4 billion; manufacturing payrolls increased $1.0 billion,
compared with an increase of $3.3 billion.  Services-producing industries' payrolls increased
$22.1 billion, compared with an increase of $24.0 billion.

 Government wage and salary disbursements increased $8.5 billion in January, compared with
an increase of $1.3 billion in December.  Pay raises for civilian and military personnel added $5.9
billion to government payrolls in January.

 Employer contributions for employee pension and insurance funds increased $7.1 billion in
January, compared with an increase of $3.7 billion in December.

 Employer contributions for government social insurance increased $6.7 billion in January,
compared with an increase of $1.9 billion in December.  The January increase reflected an
increase in the tax rate paid by employers to state unemployment insurance funds and an increase
in the social security taxable wage base (from $87,900 to $90,000); together, these changes added
$4.1 billion to January.  (Changes in employer contributions for government social insurance do
not affect personal income, because employer contributions for government social insurance are
also included in total contributions for government social insurance, which is a subtraction in the
calculation of personal income.)

                        Other personal income

 Proprietors' income increased $15.6 billion in January, compared with an increase of $14.7
billion in December.  Farm proprietors' income decreased $1.4 billion, in contrast to an increase
of $3.0 billion.  Nonfarm proprietors' income increased $17.1 billion, compared with an increase
of $11.8 billion.

 Rental income of persons decreased $4.1 billion in January; rental income of persons was
unchanged in December.

 Personal income receipts on assets (personal interest income plus personal dividend income)
decreased $293.6 billion in January, compared with an increase of $306.5 billion in December.
Personal interest income increased $2.1 billion, compared with an increase of $4.9 billion.
Personal dividend income decreased $295.8 billion, in contrast to an increase of $301.7 billion.
Personal dividend income had been 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 $13.1 billion in January, compared with an
increase of $15.5 billion in December.  The January change in current transfer receipts reflected
2.7-percent cost-of-living adjustments to social security benefits and to several other federal
transfer payment programs; together, these changes added $15.3 billion to the January increase.
The January change in current transfer receipts was reduced by lump-sum social security benefits
payments, which had added $7.4 billion to December benefit payments; these benefit payments
resulted 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 $14.2 billion in January, compared with an increase of $3.8 billion in December.  The
January increase reflected increases in both employer and personal contributions for government
social insurance.  As noted above, employer contributions were boosted $4.1 billion in January by
increases in unemployment-insurance rates and in the social security taxable wage base.  The
January increase in personal contributions for government social insurance reflected an increase
in the monthly premium paid by participants in the supplementary medical insurance program
(Medicare B) and the increase in the social security taxable wage base; together, these changes
added $6.5 billion to January personal contributions.

        Personal current taxes and disposable personal income

 Personal current taxes increased $2.7 billion in January, compared with an increase of $7.5
billion in December.  Indexation provisions of current tax law reduced federal withheld income
taxes by $3.2 billion in January.  Federal net nonwithheld income taxes (payments of estimated
taxes plus final settlements less refunds) was also reduced by $3.2 billion, based on federal budget
projections for 2005.

 Disposable personal income (DPI) -- personal income less personal current taxes --
decreased $241.4 billion, or 2.6 percent, in January, in contrast to an increase of $360.7 billion,
or 4.1 percent, in December.  The January decrease in DPI reflected the effects of the special
dividend paid by the Microsoft Corporation in December.

                Personal outlays and personal saving

 Personal outlays -- PCE, personal interest payments, and personal current transfer payments
decreased $1.4 billion in January, in contrast to an increase of $74.9 billion in December.  PCE
decreased $3.9 billion, in contrast to an increase of $70.2 billion.

 Personal saving -- DPI less personal outlays -- was $89.0 billion in January, compared with
$329.0 billion in December.  Personal saving as a percentage of disposable personal income was
1.0 percent in January, compared with 3.6 percent in December.

                        Real DPI and real PCE

 Real DPI -- DPI adjusted to remove price changes -- decreased 2.8 percent in January, in
contrast to an increase of 4.2 percent in December.

 Real PCE -- PCE adjusted to remove price changes -- decreased 0.2 percent in January, in
contrast to an increase of 0.9 percent in December.  Purchases of durable goods decreased 4.7
percent, in contrast to an increase of 4.4 percent.  Purchases of motor vehicles and parts
accounted for most of the decrease in January and accounted for most of the increase in
December.  Purchases of nondurable goods increased 0.8 percent in January, compared with an
increase of 0.4 percent in December.  Purchases of services increased 0.2 percent, compared with
an increase of 0.4 percent.

                              Revisions

 Estimates for personal income and DPI have been revised for July through December;
estimates for PCE have been revised for October through December.  Changes in personal
income, current-dollar and chained (2000) dollar DPI, and current-dollar and chained (2000)
dollar PCE for November and December -- revised and as published in last month's release -- are
                            shown below.

 For July through September, the revisions to wages and salaries reflected the incorporation
of the most recently available BLS tabulations of private wages and salaries from the state
unemployment insurance program.  Revisions to personal current taxes and to contributions for
government social insurance reflected the revisions to wages and salaries.



                                                    Change from preceding month
                                      November                                December
                         Previous  Revised    Previous  Revised    Previous  Revised     Previous  Revised
                        (Billions of dollars)     (Percent)      (Billions of dollars)       (Percent)
Personal Income:
Current dollars..........   41.4      36.7         0.4      0.4       360.9    368.2          3.7      3.7
Disposable personal income:
Current dollars..........   36.9      33.0         0.4      0.4       354.4    360.7          4.0      4.1
Chained (2000) dollars...   19.8      12.6         0.2      0.2       334.8    335.5          4.2      4.2
Personal consumption expenditures:
Current dollars..........   31.5      31.8         0.4      0.4        66.4     70.2          0.8       0.8
Chained (2000) dollars...   15.3      12.3         0.2      0.2        69.4     68.2          0.9       0.9


                                    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.

 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


                        *          *          *


Next release -- Personal Income and Outlays for February will be released on
                   March 31, 2005, at 8:30 A.M. EST.

                                      Table 1.--Personal Income and Its Disposition (Months)
                                 [Billions of dollars; months seasonally adjusted at annual rates]
-----------------------------------------------------------------------------------------------------------------------------------
                                               Jun 04    Jul 04\r\  Aug 04\r\  Sep 04\r\  Oct 04\r\  Nov 04\r\  Dec 04\r\  Jan 05\p\
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................    9,624.2    9,668.5    9,706.3    9,726.4    9,800.0    9,836.7   10,204.9    9,966.3

  Compensation of employees, received......    6,594.1    6,660.2    6,688.1    6,713.8    6,749.9    6,761.1    6,796.4    6,840.9

    Wage and salary disbursements..........    5,322.7    5,381.3    5,403.6    5,424.0    5,454.6    5,461.7    5,491.4    5,522.3
      Private industries...................    4,399.5    4,455.5    4,474.9    4,493.8    4,523.1    4,528.2    4,556.6    4,578.9
        Goods-producing industries.........    1,037.9    1,051.1    1,060.2    1,063.9    1,066.5    1,067.8    1,072.2    1,072.4
          Manufacturing....................      682.6      691.6      698.5      700.9      700.2      700.1      703.4      704.4
        Services-producing industries......    3,361.6    3,404.4    3,414.7    3,429.9    3,456.6    3,460.4    3,484.4    3,506.5
          Trade, transportation, and
           utilities.......................      887.1      897.3      898.3      903.3      905.2      905.9      911.3      918.8
          Other services-producing
           industries......................    2,474.5    2,507.1    2,516.4    2,526.6    2,551.4    2,554.5    2,573.1    2,587.7
      Government...........................      923.2      925.8      928.7      930.2      931.6      933.5      934.8      943.3

    Supplements to wages and salaries......    1,271.4    1,278.9    1,284.5    1,289.8    1,295.2    1,299.4    1,304.9    1,318.6
      Employer contributions for employee
       pension and insurance funds.........      873.9      877.5      881.6      885.7      889.2      892.9      896.6      903.7
      Employer contributions for government
       social insurance....................      397.4      401.4      402.9      404.1      406.0      406.4      408.3      415.0

  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      909.4      905.6      904.9      898.1      920.8      932.8      947.5      963.1
    Farm...................................       19.5       15.0       13.6       12.3       18.6       22.8       25.8       24.4
    Nonfarm................................      889.9      890.6      891.3      885.8      902.2      909.9      921.7      938.8

  Rental income of persons with capital
   consumption adjustment..................      172.9      170.5      156.8      134.2      164.1      162.7      162.7      158.6

  Personal income receipts on assets.......    1,359.4    1,363.6    1,367.8    1,372.1    1,380.6    1,388.9    1,695.4    1,401.8
    Personal interest income...............      945.1      945.8      946.5      947.2      952.1      956.9      961.8      963.9
    Personal dividend income...............      414.3      417.8      421.3      424.9      428.5      431.9      733.6      437.8

  Personal current transfer receipts.......    1,404.1    1,392.4    1,415.7    1,438.1    1,418.8    1,426.3    1,441.8    1,454.9
    Government social benefits to persons..    1,374.8    1,363.1    1,372.9    1,381.3    1,389.5    1,397.1    1,412.5    1,425.7
      Old-age, survivors, disability, and
       health insurance benefits...........      774.6      778.0      782.3      786.9      791.2      795.6      807.5      814.1
      Government unemployment insurance
       benefits............................       32.6       32.0       32.6       32.5       31.3       31.0       31.0       29.9
      Other................................      567.5      553.2      558.0      561.9      567.0      570.5      574.1      581.7
    Other current transfer receipts, from
     business (net)........................       29.3       29.2       42.8       56.8       29.2       29.2       29.2       29.2

  Less: Contributions for government social
   insurance...............................      815.7      823.8      827.0      829.9      834.1      835.0      838.8      853.0

Less: Personal current taxes...............    1,034.6    1,044.4    1,049.0    1,053.3    1,064.6    1,068.3    1,075.8    1,078.5

Equals: Disposable personal income.........    8,589.6    8,624.1    8,657.3    8,673.1    8,735.4    8,768.4    9,129.1    8,887.7

Less: Personal outlays.....................    8,461.0    8,561.9    8,573.2    8,629.2    8,688.7    8,725.2    8,800.1    8,798.7

  Personal consumption expenditures........    8,163.3    8,259.7    8,267.6    8,320.2    8,375.3    8,407.1    8,477.3    8,473.4
    Durable goods..........................      958.7    1,016.0      996.5    1,008.4    1,003.9      999.2    1,042.4      997.9
    Nondurable goods.......................    2,365.8    2,375.6    2,384.0    2,402.1    2,442.9    2,453.9    2,454.8    2,473.9
    Services...............................    4,838.8    4,868.1    4,887.0    4,909.7    4,928.5    4,953.9    4,980.2    5,001.6
  Personal interest payments\1\............      184.9      187.8      190.6      193.5      197.6      201.7      205.8      207.9
  Personal current transfer payments.......      112.8      114.5      115.0      115.6      115.8      116.4      117.0      117.5
    To government..........................       70.7       71.2       71.8       72.4       72.9       73.5       74.1       74.6
    To the rest of the world (net).........       42.1       43.2       43.2       43.2       42.9       42.9       42.9       42.9

Equals: Personal saving....................      128.6       62.2       84.1       43.9       46.7       43.2      329.0       89.0

  Personal saving as a percentage of
   disposable personal income..............        1.5         .7        1.0         .5         .5         .5        3.6        1.0

Addenda:
  Disposable personal income:
    Total, billions of chained (2000)
     dollars\2\............................    7,954.5    7,989.8    8,016.1    8,022.4    8,047.0    8,059.6    8,395.1    8,158.0
    Per capita:
      Current dollars......................     29,238     29,329     29,415     29,442     29,627     29,715     30,914     30,075
      Chained (2000) dollars...............     27,076     27,172     27,236     27,233     27,292     27,313     28,429     27,606
  Population (midperiod, thousands)\3\.....    293,783    294,042    294,315    294,587    294,846    295,083    295,303    295,519
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary.
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2004.
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\r\    III 03     IV 03       I 04      II 04    III 04\r\   IV 04\r\
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................    9,161.8    9,671.3    9,209.3    9,330.0    9,445.0    9,592.7    9,700.4    9,947.2

  Compensation of employees, received......    6,289.0    6,631.1    6,324.7    6,406.7    6,487.9    6,580.0    6,687.4    6,769.1

    Wage and salary disbursements..........    5,103.6    5,356.1    5,128.6    5,188.9    5,239.2    5,312.8    5,403.0    5,469.3
      Private industries...................    4,205.6    4,430.5    4,227.5    4,283.9    4,321.8    4,389.3    4,474.7    4,536.0
        Goods-producing industries.........    1,007.7    1,045.3    1,005.8    1,025.6    1,019.0    1,034.9    1,058.4    1,068.8
          Manufacturing....................      668.8      687.2      665.9      680.1      669.9      680.5      697.0      701.2
        Services-producing industries......    3,198.0    3,385.2    3,221.6    3,258.3    3,302.9    3,354.4    3,416.3    3,467.1
          Trade, transportation, and
           utilities.......................      858.6      891.4      860.7      872.0      872.4      886.2      899.6      907.5
          Other services-producing
           industries......................    2,339.4    2,493.8    2,360.9    2,386.4    2,430.5    2,468.3    2,516.7    2,559.6
      Government...........................      897.9      925.6      901.1      905.0      917.3      923.5      928.2      933.3

    Supplements to wages and salaries......    1,185.5    1,275.1    1,196.1    1,217.8    1,248.8    1,267.2    1,284.4    1,299.9
      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      399.7      378.2      381.9      392.3      396.8      402.8      406.9

  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      834.1      902.5      852.0      864.7      872.1      901.4      902.9      933.7
    Farm...................................       21.8       18.2       24.8       24.7       17.9       18.9       13.6       22.4
    Nonfarm................................      812.3      884.3      827.2      840.0      854.2      882.5      889.3      911.3

  Rental income of persons with capital
   consumption adjustment..................      153.8      165.6      148.8      167.1      172.8      172.6      153.8      163.2

  Personal income receipts on assets.......    1,322.7    1,386.4    1,314.4    1,325.8    1,337.1    1,352.3    1,367.8    1,488.3
    Personal interest income...............      929.9      945.3      922.8      932.0      936.2      941.7      946.5      956.9
    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    1,405.9    1,346.2    1,350.7    1,379.0    1,400.4    1,415.4    1,429.0
    Government social benefits to persons..    1,306.4    1,373.2    1,317.4    1,322.0    1,349.6    1,371.1    1,372.5    1,399.7
      Old-age, survivors, disability, and
       health insurance benefits...........      733.8      779.2      736.6      744.9      762.1      774.0      782.4      798.1
      Government unemployment insurance
       benefits............................       52.8       34.6       54.3       51.6       41.4       33.5       32.4       31.1
      Other................................      519.8      559.5      526.5      525.5      546.1      563.6      557.7      570.5
    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      820.2      776.7      785.0      803.9      814.0      826.9      836.0

Less: Personal current taxes...............    1,001.9    1,038.9      941.7    1,009.4    1,006.6    1,030.6    1,048.9    1,069.6

Equals: Disposable personal income.........    8,159.9    8,632.4    8,267.6    8,320.5    8,438.4    8,562.1    8,651.5    8,877.6

Less: Personal outlays.....................    8,049.3    8,531.6    8,107.8    8,209.4    8,351.6    8,448.7    8,588.1    8,738.0

  Personal consumption expenditures........    7,760.9    8,229.1    7,822.5    7,914.9    8,060.2    8,153.8    8,282.5    8,419.9
    Durable goods..........................      950.7      993.5      972.7      971.1      976.3      975.5    1,007.0    1,015.2
    Nondurable goods.......................    2,200.1    2,377.2    2,219.2    2,250.1    2,316.6    2,354.6    2,387.2    2,450.5
    Services...............................    4,610.1    4,858.4    4,630.6    4,693.6    4,767.3    4,823.8    4,888.2    4,954.2
  Personal interest payments\1\............      185.3      189.0      183.3      185.9      181.1      182.6      190.6      201.7
  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      100.8      159.8      111.1       86.8      113.4       63.4      139.6

  Personal saving as a percentage of
   disposable personal income..............        1.4        1.2        1.9        1.3        1.0        1.3         .7        1.6

Addenda:
  Disposable personal income:
    Total, billions of chained (2000)
     dollars\2\............................    7,733.8    8,006.4    7,822.9    7,849.6    7,897.0    7,951.5    8,009.5    8,167.2
    Per capita:
      Current dollars......................     28,034     29,367     28,368     28,474     28,813     29,168     29,395     30,086
      Chained (2000) dollars...............     26,570     27,237     26,842     26,862     26,964     27,088     27,214     27,678
  Population (midperiod, thousands)\3\.....    291,073    293,951    291,442    292,217    292,872    293,540    294,315    295,077
-----------------------------------------------------------------------------------------------------------------------------------
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2004.
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]
-----------------------------------------------------------------------------------------------------------------------------------
                                                Jun 04    Jul 04\r\  Aug 04\r\  Sep 04\r\  Oct 04\r\  Nov 04\r\  Dec 04\r\  Jan 05\p\
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................       20.4       44.3       37.8       20.1       73.6       36.7      368.2     -238.6

  Compensation of employees, received......        1.1       66.1       27.9       25.7       36.1       11.2       35.3       44.5

    Wage and salary disbursements..........       -2.3       58.6       22.3       20.4       30.6        7.1       29.7       30.9
      Private industries...................       -3.5       56.0       19.4       18.9       29.3        5.1       28.4       22.3
        Goods-producing industries.........        -.8       13.2        9.1        3.7        2.6        1.3        4.4         .2
          Manufacturing....................        -.9        9.0        6.9        2.4        -.7        -.1        3.3        1.0
        Services-producing industries......       -2.7       42.8       10.3       15.2       26.7        3.8       24.0       22.1
          Trade, transportation, and
           utilities.......................       -1.2       10.2        1.0        5.0        1.9         .7        5.4        7.5
          Other services-producing
           industries......................       -1.4       32.6        9.3       10.2       24.8        3.1       18.6       14.6
      Government...........................        1.2        2.6        2.9        1.5        1.4        1.9        1.3        8.5

    Supplements to wages and salaries......        3.4        7.5        5.6        5.3        5.4        4.2        5.5       13.7
      Employer contributions for employee
       pension and insurance funds.........        3.7        3.6        4.1        4.1        3.5        3.7        3.7        7.1
      Employer contributions for government
       social insurance....................        -.4        4.0        1.5        1.2        1.9         .4        1.9        6.7

  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................        8.2       -3.8        -.7       -6.8       22.7       12.0       14.7       15.6
    Farm...................................         .5       -4.5       -1.4       -1.3        6.3        4.2        3.0       -1.4
    Nonfarm................................        7.7         .7         .7       -5.5       16.4        7.7       11.8       17.1

  Rental income of persons with capital
   consumption adjustment..................         .1       -2.4      -13.7      -22.6       29.9       -1.4         .0       -4.1

  Personal income receipts on assets.......        7.2        4.2        4.2        4.3        8.5        8.3      306.5     -293.6
    Personal interest income...............        3.4         .7         .7         .7        4.9        4.8        4.9        2.1
    Personal dividend income...............        3.7        3.5        3.5        3.6        3.6        3.4      301.7     -295.8

  Personal current transfer receipts.......        3.5      -11.7       23.3       22.4      -19.3        7.5       15.5       13.1
    Government social benefits to persons..        3.5      -11.7        9.8        8.4        8.2        7.6       15.4       13.2
      Old-age, survivors, disability, and
       health insurance benefits...........        -.1        3.4        4.3        4.6        4.3        4.4       11.9        6.6
      Government unemployment insurance
       benefits............................        -.7        -.6         .6        -.1       -1.2        -.3         .0       -1.1
      Other................................        4.3      -14.3        4.8        3.9        5.1        3.5        3.6        7.6
    Other current transfer receipts, from
     business (net)........................         .0        -.1       13.6       14.0      -27.6         .0         .0         .0

  Less: Contributions for government social
   insurance...............................        -.2        8.1        3.2        2.9        4.2         .9        3.8       14.2

Less: Personal current taxes...............        2.0        9.8        4.6        4.3       11.3        3.7        7.5        2.7

Equals: Disposable personal income.........       18.4       34.5       33.2       15.8       62.3       33.0      360.7     -241.4

Less: Personal outlays.....................      -23.6      100.9       11.3       56.0       59.5       36.5       74.9       -1.4

  Personal consumption expenditures........      -26.5       96.4        7.9       52.6       55.1       31.8       70.2       -3.9
    Durable goods..........................      -41.1       57.3      -19.5       11.9       -4.5       -4.7       43.2      -44.5
    Nondurable goods.......................        1.2        9.8        8.4       18.1       40.8       11.0         .9       19.1
    Services...............................       13.4       29.3       18.9       22.7       18.8       25.4       26.3       21.4
  Personal interest payments\1\............        2.3        2.9        2.8        2.9        4.1        4.1        4.1        2.1
  Personal current transfer payments.......         .6        1.7         .5         .6         .2         .6         .6         .5
    To government..........................         .5         .5         .6         .6         .5         .6         .6         .5
    To the rest of the world (net).........         .0        1.1         .0         .0        -.3         .0         .0         .0

Equals: Personal saving....................       42.0      -66.4       21.9      -40.2        2.8       -3.5      285.8     -240.0

Addendum:
  Real disposable personal income, billions
   of chained (2000) dollars\2\............       -1.9       35.3       26.3        6.3       24.6       12.6      335.5     -237.1
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary.
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2004.
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\r\    III 03     IV 03       I 04      II 04    III 04\r\   IV 04\r\
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................      282.9      509.5      103.6      120.7      115.0      147.7      107.7      246.8

  Compensation of employees, received......      219.5      342.1       77.7       82.0       81.2       92.1      107.4       81.7

    Wage and salary disbursements..........      127.3      252.5       55.3       60.3       50.3       73.6       90.2       66.3
      Private industries...................       91.9      224.9       51.9       56.4       37.9       67.5       85.4       61.3
        Goods-producing industries.........       -2.5       37.6        6.1       19.8       -6.6       15.9       23.5       10.4
          Manufacturing....................       -6.4       18.4        2.5       14.2      -10.2       10.6       16.5        4.2
        Services-producing industries......       94.5      187.2       45.7       36.7       44.6       51.5       61.9       50.8
          Trade, transportation, and
           utilities.......................       15.0       32.8        7.8       11.3         .4       13.8       13.4        7.9
          Other services-producing
           industries......................       79.5      154.4       38.0       25.5       44.1       37.8       48.4       42.9
      Government...........................       35.3       27.7        3.3        3.9       12.3        6.2        4.7        5.1

    Supplements to wages and salaries......       92.3       89.6       22.4       21.7       31.0       18.4       17.2       15.5
      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       23.1        3.6        3.7       10.4        4.5        6.0        4.1

  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................       64.5       68.4       26.3       12.7        7.4       29.3        1.5       30.8
    Farm...................................       12.1       -3.6         .7        -.1       -6.8        1.0       -5.3        8.8
    Nonfarm................................       52.4       72.0       25.6       12.8       14.2       28.3        6.8       22.0

  Rental income of persons with capital
   consumption adjustment..................      -17.1       11.8        4.7       18.3        5.7        -.2      -18.8        9.4

  Personal income receipts on assets.......      -11.9       63.7      -10.3       11.4       11.3       15.2       15.5      120.5
    Personal interest income...............      -16.8       15.4       -9.6        9.2        4.2        5.5        4.8       10.4
    Personal dividend income...............        4.9       48.3        -.7        2.2        7.1        9.7       10.7      110.1

  Personal current transfer receipts.......       52.7       70.5       13.1        4.5       28.3       21.4       15.0       13.6
    Government social benefits to persons..       57.5       66.8       13.3        4.6       27.6       21.5        1.4       27.2
      Old-age, survivors, disability, and
       health insurance benefits...........       25.5       45.4        5.5        8.3       17.2       11.9        8.4       15.7
      Government unemployment insurance
       benefits............................        -.4      -18.2        -.5       -2.7      -10.2       -7.9       -1.1       -1.3
      Other................................       32.3       39.7        8.2       -1.0       20.6       17.5       -5.9       12.8
    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       47.0        7.8        8.3       18.9       10.1       12.9        9.1

Less: Personal current taxes...............      -49.3       37.0      -89.0       67.7       -2.8       24.0       18.3       20.7

Equals: Disposable personal income.........      332.2      472.5      192.6       52.9      117.9      123.7       89.4      226.1

Less: Personal outlays.....................      380.8      482.3      124.9      101.6      142.2       97.1      139.4      149.9

  Personal consumption expenditures........      384.8      468.2      126.2       92.4      145.3       93.6      128.7      137.4
    Durable goods..........................       34.5       42.8       25.9       -1.6        5.2        -.8       31.5        8.2
    Nondurable goods.......................      120.0      177.1       55.6       30.9       66.5       38.0       32.6       63.3
    Services...............................      230.3      248.3       44.7       63.0       73.7       56.5       64.4       66.0
  Personal interest payments\1\............      -11.9        3.7       -1.5        2.6       -4.8        1.5        8.0       11.1
  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       -9.8       67.7      -48.7      -24.3       26.6      -50.0       76.2

Addendum:
  Real disposable personal income, billions
   of chained (2000) dollars\2\............      174.3      272.6      151.8       26.7       47.4       54.5       58.0      157.7
-----------------------------------------------------------------------------------------------------------------------------------
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2004.
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]
-----------------------------------------------------------------------------------------------------------------------------------
                                                Jun 04    Jul 04\r\  Aug 04\r\  Sep 04\r\  Oct 04\r\  Nov 04\r\  Dec 04\r\  Jan 05\p\
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................         .2         .5         .4         .2         .8         .4        3.7       -2.3
  Compensation of employees, received......         .0        1.0         .4         .4         .5         .2         .5         .7
    Wage and salary disbursements..........         .0        1.1         .4         .4         .6         .1         .5         .6
    Supplements to wages and salaries......         .3         .6         .4         .4         .4         .3         .4        1.1
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................         .9        -.4        -.1        -.8        2.5        1.3        1.6        1.7
  Rental income of persons with capital
   consumption adjustment..................         .1       -1.4       -8.0      -14.4       22.2        -.9         .1       -2.6
  Personal income receipts on assets.......         .5         .3         .3         .3         .6         .6       22.1      -17.3
    Personal interest income...............         .4         .1         .1         .1         .5         .5         .5         .2
    Personal dividend income...............         .9         .9         .8         .9         .9         .8       69.8      -40.3
  Personal current transfer receipts.......         .2        -.8        1.7        1.6       -1.3         .5        1.1         .9

  Less: Contributions for government social
   insurance...............................         .0        1.0         .4         .3         .5         .1         .5        1.7

Less: Personal current taxes...............         .2         .9         .4         .4        1.1         .3         .7         .3

Equals: Disposable personal income.........         .2         .4         .4         .2         .7         .4        4.1       -2.6

Addenda:
  Personal consumption expenditures........        -.3        1.2         .1         .6         .7         .4         .8         .0
    Durable goods..........................       -4.1        6.0       -1.9        1.2        -.4        -.5        4.3       -4.3
    Nondurable goods.......................         .1         .4         .4         .8        1.7         .5         .0         .8
    Services...............................         .3         .6         .4         .5         .4         .5         .5         .4

  Real disposable personal income..........         .0         .4         .3         .1         .3         .2        4.2       -2.8
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary.
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2004.

             Table 6.--Personal Income and Its Disposition, Percent Change from Preceding Period (Years and Quarters)
                                          [Quarters seasonally adjusted at annual rates]
-----------------------------------------------------------------------------------------------------------------------------------
                                                 2003      2004\r\    III 03     IV 03       I 04      II 04    III 04\r\   IV 04\r\
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................        3.2        5.6        4.6        5.3        5.0        6.4        4.6       10.6
  Compensation of employees, received......        3.6        5.4        5.1        5.3        5.2        5.8        6.7        5.0
    Wage and salary disbursements..........        2.6        4.9        4.4        4.8        3.9        5.7        7.0        5.0
    Supplements to wages and salaries......        8.4        7.6        7.9        7.5       10.6        6.0        5.5        4.9
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................        8.4        8.2       13.4        6.1        3.5       14.1         .7       14.4
  Rental income of persons with capital
   consumption adjustment..................      -10.0        7.6       13.6       59.0       14.6        -.6      -36.8       26.5
  Personal income receipts on assets.......        -.9        4.8       -3.1        3.5        3.5        4.6        4.7       40.2
    Personal interest income...............       -1.8        1.7       -4.1        4.1        1.8        2.4        2.1        4.5
    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        3.9

  Less: Contributions for government social
   insurance...............................        3.3        6.1        4.1        4.3       10.0        5.1        6.5        4.5

Less: Personal current taxes...............       -4.7        3.7      -30.3       32.0       -1.1        9.9        7.3        8.1

Equals: Disposable personal income.........        4.2        5.8        9.9        2.6        5.8        6.0        4.2       10.9

Addenda:
  Personal consumption expenditures........        5.2        6.0        6.7        4.8        7.5        4.7        6.5        6.8
    Durable goods..........................        3.8        4.5       11.4        -.6        2.2        -.4       13.6        3.3
    Nondurable goods.......................        5.8        8.1       10.7        5.7       12.3        6.7        5.7       11.0
    Services...............................        5.3        5.4        4.0        5.6        6.4        4.8        5.5        5.5

  Real disposable personal income..........        2.3        3.5        8.2        1.4        2.4        2.8        2.9        8.1
-----------------------------------------------------------------------------------------------------------------------------------
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2004.

                        Table 7.--Real Personal Consumption Expenditures by Major Type of Product (Months)
                                   [Months seasonally adjusted at annual rates except as noted]
-----------------------------------------------------------------------------------------------------------------------------------
                                                Jun 04    Jul 04\r\  Aug 04\r\  Sep 04\r\  Oct 04\r\  Nov 04\r\  Dec 04\r\  Jan 05\p\
-----------------------------------------------------------------------------------------------------------------------------------
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........    7,559.7    7,652.2    7,655.2    7,696.0    7,715.2    7,727.5    7,795.7    7,777.6
  Durable goods............................    1,057.1    1,124.8    1,108.9    1,121.1    1,114.3    1,109.1    1,157.5    1,102.5
  Nondurable goods.........................    2,184.9    2,202.8    2,211.3    2,225.5    2,237.4    2,245.4    2,255.1    2,273.9
  Services.................................    4,324.9    4,342.2    4,349.7    4,365.5    4,377.9    4,386.1    4,403.9    4,412.3
                                           ----------------------------------------------------------------------------------------
                                                                       Change from preceding period in
                                                                      billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........      -42.7       92.5        3.0       40.8       19.2       12.3       68.2      -18.1
  Durable goods............................      -44.1       67.7      -15.9       12.2       -6.8       -5.2       48.4      -55.0
  Nondurable goods.........................       -7.4       17.9        8.5       14.2       11.9        8.0        9.7       18.8
  Services.................................        1.6       17.3        7.5       15.8       12.4        8.2       17.8        8.4
                                           ----------------------------------------------------------------------------------------
                                                                   Percent change from preceding period in
                                                                   chained (2000) dollars at monthly rates
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........        -.6        1.2         .0         .5         .3         .2         .9        -.2
  Durable goods............................       -4.0        6.4       -1.4        1.1        -.6        -.5        4.4       -4.7
  Nondurable goods.........................        -.3         .8         .4         .6         .5         .4         .4         .8
  Services.................................         .0         .4         .2         .4         .3         .2         .4         .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]
-----------------------------------------------------------------------------------------------------------------------------------
                                                 2003      2004\r\    III 03     IV 03       I 04      II 04    III 04\r\   IV 04\r\
-----------------------------------------------------------------------------------------------------------------------------------
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........    7,355.6    7,632.3    7,401.7    7,466.8    7,543.0    7,572.4    7,667.8    7,746.2
  Durable goods............................    1,030.6    1,098.8    1,059.6    1,069.7    1,075.5    1,074.7    1,118.3    1,127.0
  Nondurable goods.........................    2,112.4    2,208.6    2,125.3    2,152.0    2,187.3    2,188.0    2,213.2    2,246.0
  Services.................................    4,220.3    4,338.4    4,227.9    4,256.7    4,291.7    4,320.0    4,352.4    4,389.3
                                           ----------------------------------------------------------------------------------------
                                                                       Change from preceding period in
                                                                      billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------
Personal consumption expenditures..........      232.2      276.7       90.3       65.1       76.2       29.4       95.4       78.4
  Durable goods............................       71.0       68.2       39.6       10.1        5.8        -.8       43.6        8.7
  Nondurable goods.........................       75.0       96.2       35.2       26.7       35.3         .7       25.2       32.8
  Services.................................       91.7      118.1       20.2       28.8       35.0       28.3       32.4       36.9
                                           ----------------------------------------------------------------------------------------
                                                                   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        4.2
  Durable goods............................        7.4        6.6       16.5        3.9        2.2        -.3       17.2        3.1
  Nondurable goods.........................        3.7        4.6        6.9        5.1        6.7         .1        4.7        6.1
  Services.................................        2.2        2.8        1.9        2.8        3.3        2.7        3.0        3.4
-----------------------------------------------------------------------------------------------------------------------------------
r Revised.

      Table 9.--Price Indexes for Personal Consumption Expenditures: Level and Percent Change From Preceding Period (Months)
-----------------------------------------------------------------------------------------------------------------------------------
                                                Jun 04    Jul 04\r\  Aug 04\r\  Sep 04\r\  Oct 04\r\  Nov 04\r\  Dec 04\r\  Jan 05\p\
-----------------------------------------------------------------------------------------------------------------------------------
                                           ----------------------------------------------------------------------------------------
                                                                     Chain-type price indexes (2000=100),
                                                                             seasonally adjusted
                                           ----------------------------------------------------------------------------------------

Personal consumption expenditures
 (PCE).....................................    107.989    107.943    108.004    108.116    108.560    108.799    108.748    108.949
  Durable goods............................     90.645     90.291     89.827     89.904     90.049     90.052     90.018     90.468
  Nondurable goods.........................    108.286    107.848    107.815    107.944    109.188    109.290    108.860    108.799
  Services.................................    111.885    112.115    112.358    112.470    112.581    112.950    113.089    113.360
Addenda:
  PCE excluding food and energy............    106.625    106.661    106.726    106.872    107.037    107.231    107.262    107.588
  Market-based PCE\1\......................    107.676    107.623    107.666    107.732    108.239    108.493    108.446    108.603
  Market-based PCE excluding food
   and energy\1\...........................    105.955    105.999    106.043    106.139    106.326    106.530    106.583    106.878
                                           ----------------------------------------------------------------------------------------
                                                                     Percent change from preceding period
                                                                      in price indexes at monthly rates
                                           ----------------------------------------------------------------------------------------
PCE........................................         .2         .0         .1         .1         .4         .2         .0         .2
  Durable goods............................        -.1        -.4        -.5         .1         .2         .0         .0         .5
  Nondurable goods.........................         .4        -.4         .0         .1        1.2         .1        -.4        -.1
  Services.................................         .2         .2         .2         .1         .1         .3         .1         .2
Addenda:
  PCE excluding food and energy............         .1         .0         .1         .1         .2         .2         .0         .3
  Market-based PCE\1\......................         .3         .0         .0         .1         .5         .2         .0         .1
  Market-based PCE excluding food
   and energy\1\...........................         .2         .0         .0         .1         .2         .2         .0         .3
-----------------------------------------------------------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------------------------------------------------
                                                Jun 04    Jul 04\r\  Aug 04\r\  Sep 04\r\  Oct 04\r\  Nov 04\r\  Dec 04\r\  Jan 05\p\
-----------------------------------------------------------------------------------------------------------------------------------
Disposable personal income.................        3.3        2.3        1.8        3.1        3.1        2.5        6.5        3.5

Personal consumption expenditures..........        3.0        3.8        3.0        4.0        4.1        3.3        3.8        3.4
  Durable goods............................        3.2        7.9        3.1        5.7        6.9        3.8        5.4        3.7
  Nondurable goods.........................        3.8        4.1        3.4        4.9        4.7        3.9        4.5        4.1
  Services.................................        2.6        2.8        2.9        3.2        3.2        3.0        3.2        3.0
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary.
r Revised.  Revisions include changes to series affected by the introduction
   of revised wage and salary estimates for the third quarter of 2004.

              Table 11.--Price Indexes for Personal Consumption Expenditures: Percent Change From Month One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------
                                                Jun 04    Jul 04\r\  Aug 04\r\  Sep 04\r\  Oct 04\r\  Nov 04\r\  Dec 04\r\  Jan 05\p\
-----------------------------------------------------------------------------------------------------------------------------------
Personal consumption expenditures
 (PCE).....................................        2.5        2.4        2.2        2.1        2.5        2.7        2.4        2.2
  Durable goods............................       -1.9       -2.0       -2.2       -1.6       -1.0        -.8        -.5        -.3
  Nondurable goods.........................        4.7        4.0        3.2        2.7        4.3        4.7        4.1        3.3
  Services.................................        2.4        2.5        2.6        2.6        2.3        2.5        2.3        2.2
Addenda:
  PCE excluding food and energy............        1.5        1.4        1.5        1.6        1.6        1.6        1.5        1.6
  Market-based PCE\1\......................        2.7        2.5        2.2        2.0        2.6        2.9        2.7        2.4
  Market-based PCE excluding food
   and energy\1\...........................        1.6        1.4        1.4        1.4        1.5        1.7        1.7        1.7
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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.