News Release

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, NOVEMBER 30, 2007
BEA 07-54

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.