News Release
Personal Income and Outlays, October 2007
OCTOBER 2007
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, FRIDAY, NOVEMBER 30, 2007 James E. Rankin: (202) 606-5301 (Personal Income)BEA 07-54 Michael Armah: (202) 606-5302 (Personal Outlays) PERSONAL INCOME AND OUTLAYS: OCTOBER 2007 Personal income increased $21.2 billion, or 0.2 percent, and disposable personal income (DPI) increased $14.0 billion, or 0.1 percent, in October, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $23.8 billion, or 0.2 percent. In September, personal income increased $50.4 billion, or 0.4 percent, DPI increased $43.2 billion, or 0.4 percent, and PCE increased $33.0 billion, or 0.3 percent, based on revised estimates. 2007 June July Aug. Sept. Oct. (Percent change from preceding month) Personal income, current dollars 0.4 0.6 0.4 0.4 0.2 Disposable personal income: Current dollars 0.4 0.6 0.5 0.4 0.1 Chained (2000) dollars 0.3 0.5 0.5 0.2 -0.1 Personal consumption expenditures: Current dollars 0.2 0.4 0.4 0.3 0.2 Chained (2000) dollars 0.1 0.3 0.4 0.1 0.0 This news release presents revised estimates of wages and salaries, personal taxes, and contributions for government social insurance for April through June 2007 (second quarter). These estimates reflect newly available second-quarter wage and salary tabulations from the quarterly census of employment and wages from the Bureau of Labor Statistics. Wages and salaries Private wage and salary disbursements increased $1.5 billion in October, compared with an increase of $35.3 billion in September. Goods-producing industries' payrolls decreased $2.7 billion, in contrast to an increase of $3.0 billion; manufacturing payrolls decreased $1.2 billion, in contrast to an increase of $0.4 billion. Services-producing industries' payrolls increased $4.2 billion, compared with an increase of $32.3 billion. Government wage and salary disbursements increased $4.0 billion, the same increase as in September. Other personal income Supplements to wages and salaries increased $4.6 billion in October, compared with an increase of $5.9 billion in September. Proprietors' income decreased $1.7 billion in October, compared with a decrease of $6.9 billion in September. Farm proprietors' income increased $1.6 billion, compared with an increase of $1.8 billion. Nonfarm proprietors' income decreased $3.3 billion, compared with a decrease of $8.7 billion. Rental income of persons increased $1.4 billion in October, compared with an increase of $1.9 billion in September. Personal income receipts on assets (personal interest income plus personal dividend income) increased $7.7 billion, compared with an increase of $14.5 billion. Personal current transfer receipts increased $4.4 billion, compared with an increase of $0.7 billion. Contributions for government social insurance -- a subtraction in calculating personal income -- increased $0.5 billion in October, compared with an increase of $5.1 billion in September. Personal current taxes and disposable personal income Personal current taxes increased $7.3 billion in October, compared with an increase of $7.1 billion in September. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $14.0 billion, or 0.1 percent, in October, compared with an increase of $43.2 billion, or 0.4 percent, in September. Personal outlays and personal saving Personal outlays -- PCE, personal interest payments, and personal current transfer payments increased $27.4 billion in October, compared with an increase of $36.0 billion in September. PCE increased $23.8 billion, compared with an increase of $33.0 billion. Personal saving -- DPI less personal outlays -- was $54.5 billion in October, compared with $67.9 billion in September. Personal saving as a percentage of disposable personal income was 0.5 percent in October, compared with 0.7 percent in September. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods. For more information, see the FAQs on "Personal Saving" on BEA's Web site. For a comparison of personal saving in BEA's national income and product accounts with personal saving in the Federal Reserve Board's flow of funds accounts and data on changes in net worth, which help finance consumption, go to /bea/dn/nipaweb/Nipa-Frb.asp. Real DPI and real PCE Real DPI -- DPI adjusted to remove price changes -- decreased 0.1 percent in October, in contrast to an increase of 0.2 percent in September. Real PCE -- PCE adjusted to remove price changes -- decreased less than 0.1 percent in October, in contrast to an increase of 0.1 percent in September. Purchases of durable goods decreased 0.6 percent, in contrast to an increase of 0.7 percent. Purchases of motor vehicles and parts accounted for most of the decrease in October and for most of the increase in September. Purchases of nondurable goods decreased 0.1 percent in October, in contrast to an increase of 0.3 percent in September. Purchases of services increased 0.1 percent, in contrast to a decrease of 0.2 percent. The price index for PCE increased 0.3 percent in October, the same increase as in September. The PCE price index, excluding food and energy, increased 0.2 percent in October, the same increase as in September. Revisions Estimates have been revised for April through September. Changes in personal income, current-dollar and chained (2000) dollar DPI, and current-dollar and chained (2000) dollar PCE for August and September -- revised and as published in last month's release -- are shown below. Change from preceding month August September Previous Revised Previous Revised Previous Revised Previous Revised (Billions of dollars) (Percent) (Billions of dollars) (Percent) Personal Income: Current dollars...................... 52.8 51.2 0.4 0.4 47.4 50.4 0.4 0.4 Disposable personal income: Current dollars...................... 48.6 47.5 0.5 0.5 40.6 43.2 0.4 0.4 Chained (2000) dollars............... 44.8 43.7 0.5 0.5 15.0 13.3 0.2 0.2 Personal consumption expenditures: Current dollars...................... 51.4 36.4 0.5 0.4 30.1 33.0 0.3 0.3 Chained (2000) dollars............... 46.9 34.2 0.6 0.4 7.1 5.7 0.1 0.1 BEA's national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. * * * Next release December 21, 2007 at 8:30 A.M. EST for Personal Income and Outlays for November.