Personal income increased $30.1 billion, or 0.2 percent, and disposable personal income (DPI)
increased $45.7 billion, or 0.4 percent, inOctober, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $68.3 billion, or 0.7 percent. In September,
personal income increased $20.7 billion, or 0.2 percent, DPI increased $21.3 billion, or 0.2 percent,
and PCE decreased $60.3 billion, or 0.6 percent, based on revised estimates.
Real disposable income increased 0.2 percent in October, compared with an increase of 0.1
percent in September. Real PCE increased 0.4 percent, in contrast to a decrease of 0.7 percent.
2009
June July Aug. Sept. Oct.
(Percent change from preceding month)
Personal income, current dollars -1.0 0.3 0.3 0.2 0.2
Disposable personal income:
Current dollars -0.9 0.1 0.3 0.2 0.4
Chained (2005) dollars -1.5 0.1 -0.1 0.1 0.2
Personal consumption expenditures:
Current dollars 0.7 0.2 1.3 -0.6 0.7
Chained (2005) dollars 0.2 0.2 1.0 -0.7 0.4
Wages and salaries
Private wage and salary disbursements increased $2.1 billion in October, in contrast to a decrease of
$6.2 billion in September. Goods-producing industries' payrolls decreased $3.3 billion, compared with
a decrease of $6.8 billion; manufacturing payrolls decreased $3.6 billion, compared with a decrease
of $0.3 billion. Services-producing industries' payrolls increased $5.4 billion, compared with an
increase of $0.6 billion. Government wage and salary disbursements increased $0.6 billion, in contrast
to a decrease of $1.7 billion.
Other personal income
Supplements to wages and salaries increased $1.3 billion in October, compared with an increase of $0.4 billion in September.
Proprietors' income increased $10.0 billion in October, compared with an increase of $2.5 billion in September.
Farm proprietors' income increased $4.6 billion, in contrast to a decrease of $1.4 billion. Nonfarm proprietors'
income increased $5.4 billion, compared with an increase of $3.9 billion.
Rental income of persons increased $4.3 billion in October, compared with an increase of $5.2 billion in
September. Personal income receipts on assets (personal interest income plus personal dividend income)
increased $4.8 billion, in contrast to a decrease of $2.0 billion. Personal current transfer receipts
increased $7.2 billion, compared with an increase of $21.6 billion.
Contributions for government social insurance -- a subtraction in calculating personal income -- increased
$0.2 billion in October, in contrast to a decrease of $0.9 billion in September.
Personal current taxes and disposable personal income
Personal current taxes decreased $15.6 billion in October, compared with a decrease of $0.7 billion in September.
Disposable personal income (DPI) -- personal income less personal current taxes -- increased $45.7 billion,
or 0.4 percent, in October, compared with an increase of $21.3 billion, or 0.2 percent in September.
Personal outlays and personal saving
Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $65.8 billion
inOctober, in contrast to a decrease of $60.6 billion in September. PCE increased $68.3 billion, in contrast to
a decrease of $60.3 billion.
Personal saving -- DPI less personal outlays -- was $490.3 billion in October, compared with $510.4 billion
in September. Personal saving as a percentage of disposable personal income was 4.4 percent in October,
compared with 4.6 percent in September. 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 price index
Real DPI -- DPI adjusted to remove price changes -- increased 0.2 percent in October, compared with
an increase of 0.1 percent in September.
Real PCE -- PCE adjusted to remove price changes -- increased 0.4 percent in October, in contrast to a decrease
of 0.7 percent in September. Purchases of durable goods increased 2.0 percent, in contrast to a decrease of
8.7 percent. Purchases of motor vehicles and parts accounted for the increase in October and accounted for most of
the decrease in September. The September decrease reflected the impact of the CARS program (popularly
called cash for clunkers), which had boosted motor vehicle sales in July and in August. For further
information on how the CARS program is reflected in the GDP statistics, please see the FAQ at BEAs Web site,
www.bea.gov, How will the federal Consumer Assistance to Recycle and Save Act of 2009 (i.e., the CARS program)
be reflected in the National Income and Product Accounts (NIPAs)? Purchases of nondurable goods
increased 0.2 percent in October, compared with an increase of 0.6 percent in September. Purchases of services
increased 0.3 percent, compared with an increase of 0.2 percent.
PCE price index -- The price index for PCE increased 0.3 percent in October, compared with an increase of 0.1
percent in September. The PCE price index, excluding food and energy, increased 0.2 percent, compared with an
increase of 0.1 percent.
Revisions
Estimates of personal income have been revised for April through September; estimates of PCE have been revised
for July through September. Changes in personal income, current-dollar and chained (2005) dollar DPI,
and current-dollar and chained (2005) dollar PCE for August and September -- revised and as published
in last month's release -- are shown below.
For April through June, the revisions to wages and salaries reflected the incorporation of newly
available BLS tabulations for second-quarter private wages and salaries from the quarterly census of
employment and wages. Wages and salaries were revised up for all three months. Revisions to personal
current taxes reflected the revision to wages and salaries and the incorporation of revised annual
targets based on collections data from Monthly Treasury Statements.
Beginning in July, revisions to personal current transfer receipts reflect updated estimates of
the impact of the American Recovery and Reinvestment Act of 2009 (ARRA).
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 17.4 31.0 0.1 0.3 -0.1 20.7 0.0 0.2
Disposable personal income:
Current Dollars 14.1 28.7 0.1 0.3 -0.2 21.3 0.0 0.2
Chained (2005) dollars -21.2 -8.9 -0.2 -0.1 -11.9 8.2 -0.1 0.1
Personal consumption expenditures:
Current dollars 139.8 131.4 1.4 1.3 -47.2 -60.3 -0.5 -0.6
Chained (2005) dollars 96.0 87.7 1.0 1.0 -54.1 -65.3 -0.6 -0.7
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 --December 23, 2009 at 8:30 A.M. EST for Personal Income and Outlays for November.
-more-
________________________
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.
