Personal income increased $3.8 billion, or less than 0.1 percent, and disposable personal income
(DPI) decreased $4.6 billion, or less than 0.1 percent, inJuly, according to the Bureau of Economic
Analysis. Personal consumption expenditures (PCE) increased $25.0 billion, or 0.2 percent. In June,
personal income decreased $133.4 billion, or 1.1 percent, DPI decreased $119.9 billion, or 1.1 percent,
and PCE increased $60.9 billion, or 0.6 percent, based on revised estimates.
Real disposable income decreased 0.1 percent in July, compared with a decrease of 1.6 percent
in June. Real PCE increased 0.2 percent, compared with an increase of 0.1 percent.
2009
Mar. Apr. May June July
(Percent change from preceding month)
Personal income, current dollars -0.5 0.3 1.4 -1.1 0.0
Disposable personal income:
Current dollars -0.2 0.9 1.7 -1.1 0.0
Chained (2005) dollars -0.1 0.8 1.6 -1.6 -0.1
Personal consumption expenditures:
Current dollars -0.3 -0.1 0.1 0.6 0.2
Chained (2005) dollars -0.2 -0.2 0.1 0.1 0.2
The pattern of recent changes in personal income reflected selected provisions of the American Recovery and
Reinvestment Act of 2009. These provisions boosted personal current transfer receipts in May much more than
in June. Excluding these receipts, which are discussed more fully below, personal income increased $9.4 billion,
or 0.1 percent, in July, increased $18.6 billion, or 0.2 percent, in June, and increased $9.6 billion, or
0.1 percent, in May. Excluding these receipts, real DPI decreased less than 0.1 percent in July, following
a decrease of 0.2 percent in June, and an increase of 0.1 percent in May.
Wages and salaries
Private wage and salary disbursements increased $6.7 billion in July, in contrast to a decrease of $24.5 billion
in June. Goods-producing industries' payrolls increased $1.4 billion, in contrast to a decrease of $10.0 billion;
manufacturing payrolls increased $5.0 billion, in contrast to a decrease of $5.9 billion. Services-producing
industries' payrolls increased $5.3 billion, in contrast to a decrease of $14.5 billion. Government wage and
salary disbursements increased $2.1 billion compared with an increase of $3.5 billion.
Other personal income
Supplements to wages and salaries increased $1.8 billion in July, compared with an increase of $0.3 billion in June.
Proprietors' income increased $5.8 billion in July, compared with an increase of $4.6 billion in June.
Farm proprietors' income decreased $2.0 billion, in contrast to an increase of $1.9 billion. Nonfarm proprietors'
income increased $7.8 billion, compared with an increase of $2.6 billion.
Rental income of persons increased $8.7 billion in July, compared with an increase of $5.4 billion in June.
Personal income receipts on assets (personal interest income plus personal dividend income) decreased
$17.3 billion, compared with a decrease of $2.7 billion.
Personal current transfer receipts decreased $3.3 billion in July, compared with a decrease of $122.3 billion in June.
The June change reflected one-time payments of $250 to eligible individuals receiving veteran benefits, which boosted
the level of personal current transfer receipts by $5.6 billion at an annual rate in June. The May change had
reflected one-time payments of $250 to eligible individuals receiving social security, supplemental security income,
and railroad retirement benefits, which boosted personal current transfers by $157.6 billion in May.
Contributions for government social insurance -- a subtraction in calculating personal income -- increased
$0.8 billion in July, in contrast to a decrease of $2.7 billion in June.
Personal current taxes and disposable personal income
Personal current taxes increased $8.4 billion in July, in contrast to a decrease of $13.4 billion in June.
Disposable personal income (DPI) -- personal income less personal current taxes -- decreased $4.6 billion, or less
than 0.1 percent, in July, compared with a decrease of $119.9 billion, or 1.1 percent in June.
Personal outlays and personal saving
Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $23.8 billion
inJuly, compared with an increase of $54.5 billion in June. PCE increased $25.0 billion, compared with an increase
of $60.9 billion.
Personal saving -- DPI less personal outlays was $458.5 billion in July, compared with $486.8 billion in June.
Personal saving as a percentage of disposable personal income was 4.2 percent in July, compared with 4.5 percent
in June. For a comparison of personal saving in BEAs national income and product accounts with personal saving
in the Federal Reserve Boards flow of funds accounts and data on changes in net worth, go to
/national/nipaweb/Nipa-Frb.asp.
Real DPI, real PCE and PCE price index
Real DPI -- DPI adjusted to remove price changes -- decreased 0.1 percent in July, compared with a decrease of 1.6 percent
in June.
Real PCE -- PCE adjusted to remove price changes -- increased 0.2 percent in July, compared with an increase of 0.1 percent
in June. Purchases of durable goods increased 1.8 percent, compared with an increase of 0.8 percent. Purchases of motor
vehicles and parts more than accounted for the increase in July and accounted for most of the increase in June. Motor
vehicle spending in July was impacted by the federal CARS program (popularly called cash for clunkers). See the
Personal Income and Outlays technical note for more information. Purchases of nondurable goods decreased 0.3 percent in
July, the same decrease as in June. Purchases of services increased 0.1 percent, the same increase as in June.
PCE price index -- The price index for PCE increased less than 0.1 percent in July, compared with an increase of 0.5
percent in June. The PCE price index, excluding food and energy, increased 0.1 percent, compared with an increase
of 0.2 percent.
Revisions
Estimates of personal income and DPI have been revised for January through June; estimates of PCE have been revised
for April through June. Changes in personal income, current-dollar and chained (2005) dollar DPI, and current-dollar
and chained (2005) dollar PCE for May and June -- revised and as published in last month's release -- are shown below.
For January through June, the revision to wages and salaries reflected the incorporation of the most recently available
BLS tabulations for first-quarter private wages and salaries from the quarterly census of employment and wages.
Wages and salaries were revised down in all six months.
Change from preceding month
May June
Previous Revised Previous Revised Previous Revised Previous Revised
(Billions of dollars) (Percent) (Billions of dollars) (Percent)
Personal Income:
Current dollars...................... 155.1 167.2 1.3 1.4 -159.8 -133.4 -1.3 -1.1
Disposable personal income:
Current Dollars...................... 168.7 179.0 1.6 1.7 -143.8 -119.9 -1.3 -1.1
Chained (2005) dollars............... 149.8 158.4 1.5 1.6 -186.7 -164.5 -1.8 -1.6
Personal consumption expenditures:
Current dollars..................... 9.0 12.4 0.1 0.1 41.4 60.9 0.4 0.6
Chained (2005) dollars.............. 3.2 5.5 0.0 0.1 -12.0 6.2 -0.1 0.1
BEAs national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases
are available without charge on BEAs 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 October 1, 2009 at 8:30 A.M. EDT for Personal Income and Outlays for August.
________________________
NOTE. - - Monthly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified.
Month-to-month dollar changes are differences between these published estimates. Month-to-month percent changes
are calculated from unrounded data and are not annualized. Real estimates are in chained (2005) dollars.
This news release is available on BEAs Web site at www.bea.gov/newsreleases/rels.htm.
