Personal income increased $18.7 billion, or 0.1 percent, and disposable personal income (DPI)
increased $16.3 billion, or 0.1 percent, inJune, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) decreased $21.9 billion, or 0.2 percent. In May,
personal income increased $23.2 billion, or 0.2 percent, DPI increased $17.6 billion, or 0.2
percent, and PCE increased $5.9 billion, or 0.1 percent, based on revised estimates.
Real disposable income increased 0.3 percent in June, in contrast to a decrease of less than 0.1
percent in May. Real PCE decreased less than 0.1 percent, compared with a decrease of 0.1 percent.
2011
Feb. Mar. Apr. May June
(Percent change from preceding month)
Personal income, current dollars 0.5 0.4 0.4 0.2 0.1
Disposable personal income:
Current dollars 0.4 0.4 0.4 0.2 0.1
Chained (2005) dollars 0.0 0.0 0.1 0.0 0.3
Personal consumption expenditures:
Current dollars 0.8 0.6 0.2 0.1 -0.2
Chained (2005) dollars 0.4 0.2 -0.1 -0.1 0.0
Wages and salaries
Private wage and salary disbursements decreased $2.2 billion in June, in contrast to an increase
of $15.0 billion in May. Goods-producing industries' payrolls decreased $1.8 billion, in contrast
to an increase of $4.8 billion; manufacturing payrolls decreased $2.1 billion, in contrast to an increase
of $4.1 billion. Services-producing industries' payrolls decreased $0.3 billion, in contrast to an
increase of $10.1 billion. Government wage and salary disbursements decreased $0.4 billion, compared
with a decrease of $0.5 billion.
Other personal income
Supplements to wages and salaries increased $1.5 billion in June, compared with an increase of $2.8 billion in May.
Proprietors' income decreased $0.8 billion in June, in contrast to an increase of $0.6 billion in May. Farm
proprietors' income decreased $0.5 billion, the same decrease as in May. Nonfarm proprietors' income decreased
$0.3 billion in June, in contrast to an increase of $1.1 billion in May.
Rental income of persons decreased $1.2 billion in June, compared with a decrease of $1.3 billion in May.
Personal income receipts on assets (personal interest income plus personal dividend income) increased
$12.0 billion, compared with an increase of $10.1 billion. Personal current transfer receipts increased
$9.5 billion, in contrast to a decrease of $1.4 billion. Changes in personal current transfer receipts reflect
the effects of unemployment compensation legislation.
Contributions for government social insurance -- a subtraction in calculating personal income -- decreased
$0.2 billion in June, in contrast to an increase of $2.2 billion in May.
Personal current taxes and disposable personal income
Personal current taxes increased $2.3 billion in June, compared with an increase of $5.6 billion in May.
Disposable personal income (DPI) -- personal income less personal current taxes -- increased $16.3 billion,
or 0.1 percent, in June, compared with an increase of $17.6 billion, or 0.2 percent in May.
Personal outlays and personal saving
Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- decreased
$22.6 billion inJune, in contrast to an increase of $5.3 billion in May. PCE decreased $21.9
billion, in contrast to an increase of $5.9 billion.
Personal saving -- DPI less personal outlays -- was $620.6 billion in June, compared with $581.7 billion
in May. Personal saving as a percentage of disposable personal income was 5.4 percent in June,
compared with 5.0 percent in May. 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 0.3 percent in June, in contrast to a decrease
of less than 0.1 percent in May.
Real PCE -- PCE adjusted to remove price changes -- decreased less than 0.1 percent in June, compared with a
decrease of 0.1 percent in May. Purchases of durable goods decreased 0.6 percent, compared with a
decrease of 1.4 percent. Purchases of motor vehicles and parts accounted for most of the decrease in June and
in May. Purchases of nondurable goods increased 0.2 percent in June, in contrast to a decrease of 0.3 percent
in May. Purchases of services decreased less than 0.1 percent, in contrast to an increase of 0.2 percent.
PCE price index -- The price index for PCE decreased 0.2 percent in June, in contrast to an increase of
0.2 percent in May. The PCE price index, excluding food and energy, increased 0.1 percent, compared with
an increase of 0.2 percent.
Revisions of the Personal Income and Outlays Estimates
The revised estimates of personal income, personal outlays, DPI, and personal saving reflect the results of
the annual revision of the national income and product accounts (NIPAs). In addition to the regular revision
of estimates for the most recent 3 years and the first 5 months of 2011, this flexible annual revision
results in revisions to current-dollar personal outlays and personal saving back to January 2003. The reference
year remains 2005. In cases for which the estimates for the reference year (2005) are revised, this results
in revisions to the levels of the related index numbers and chained-dollar estimates for the entire historical
period; revisions to percent changes before the first quarter of 2003 are small. Annual revisions, which are
usually released in July, incorporate newly available and more comprehensive source data, as well as
improved methodologies. In this annual revision, the notable revisions primarily reflect the incorporation
of newly available and revised source data.
Revised annual estimates of personal income and outlays for 2008-2010 are shown in table 12. Revised
and previously published monthly estimates of personal income, DPI, PCE, personal saving as a percentage
of DPI, real DPI, and real PCE are shown in table 13; revised and previously published annual and
quarterly estimates are shown in table 14.
Personal income was revised up $69.1 billion, or 0.6 percent, for 2008; was revised down $244.7 billion,
or 2.0 percent, for 2009; and was revised down $167.5 billion, or 1.3 percent, for 2010. For 2008, upward
revisions to personal interest income, to supplements to wages and salaries, and to rental income of persons
were partly offset by downward revisions to personal dividend income, to wages and salaries, and to nonfarm
proprietors income. For 2009, downward revisions to personal interest income, to personal dividend income,
and to nonfarm proprietors income were partly offset by upward revisions to rental income of persons and
to farm proprietors income. For 2010, downward revisions to personal interest income, to nonfarm
proprietors income, to supplements to wages and salaries, and to personal current transfer receipts were
partly offset by upward revisions to rental income of persons, to wages and salaries, and to farm proprietors income.
Disposable personal income (DPI) (personal income less personal current taxes) was revised up $71.6 billion,
or 0.7 percent, for 2008; was revised down $246.1 billion, or 2.2 percent, for 2009; and was revised down
$195.0 billion, or 1.7 percent, for 2010. Personal current taxes was revised down $2.5 billion for 2008, was
revised up $1.4 billion for 2009, and was revised up $27.6 billion for 2010. The percent change from the
preceding year in real DPI was revised up from 1.7 percent to 2.4 percent for 2008, was revised down from
an increase of 0.6 percent to a decrease of 2.3 percent for 2009, and was revised up from an increase of
1.4 percent to an increase of 1.8 percent for 2010.
Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- was revised
down for all 3 years: $72.8 billion for 2008, $143.3 billion for 2009, and $133.8 billion for 2010.
For all 3 years, downward revisions to PCE accounted for most of the revisions to personal outlays.
The personal saving rate (personal saving as a percentage of DPI) was revised up from 4.1 percent to
5.4 percent for 2008, was revised down from 5.9 percent to 5.1 percent for 2009, and was revised
down from 5.7 percent to 5.3 percent for 2010.
For the earlier period 2004-2007, PCE was revised down for all 4 years: $14.5 billion for 2004,
$15.5 billion for 2005, $21.7 billion for 2006, and $34.0 billion for 2007. The personal saving rate was
revised up from 3.4 percent to 3.6 percent for 2004, was revised up from 1.4 percent to 1.5 percent for
2005, was revised up from 2.4 percent to 2.6 percent for 2006, and was revised up from 2.1 percent to 2.4 percent
for 2007. (For 2003, PCE was revised up by less than $1 billion, and the personal saving rate was unrevised.)
NOTE. BEA acknowledges the special efforts by the Bureau of Labor Statistics with the assistance of 16 state
employment offices in providing preliminary data for the first quarter of 2011 from the quarterly census of
employment and wages. Wage and salary data from the state employment offices of California, Colorado,
Connecticut, Delaware, Florida, Illinois, Kansas, Massachusetts, Missouri, New Mexico, North Carolina,
New Jersey, New York, Ohio, Pennsylvania, and Texas were provided. These data should greatly improve
the estimates of wages and salaries.
Annual Revision of the National Income and Product Accounts
The estimates released today reflect the results of the annual revision of the national income and product
accounts (NIPAs). In addition to the regular revision of estimates for the most recent 3 years and through
May 2011, current-dollar personal income and outlays and some components are revised back to January 2003.
In cases for which the estimates for the reference year (2005) are revised, this results in revisions to
the levels of the related index numbers and chained-dollar estimates for the entire historical period;
revision to percent changes before January 2003 are small. Annual revisions, which are usually released
in July, incorporate source data that are more complete, more detailed, and otherwise more reliable than
those previously available. This release includes the revised monthly estimates of personal income and personal
outlays and provides an overview of the results of the revision.
The August 2011 Survey of Current Business will contain NIPA tables and an article describing the revisions.
The complete set of revised estimates will be available on BEAs Web site at www.bea.gov.
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 August 29, 2011, at 8:30 A.M. EDT for Personal Income and Outlays for July.
________________________
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.
