Personal income increased $61.8 billion, or 0.5 percent, and disposable personal income (DPI)
increased $52.4 billion, or 0.4 percent, in June, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) decreased $1.3 billion, or less than 0.1 percent. In May,
personal income increased $39.0 billion, or 0.3 percent, DPI increased $31.7 billion, or 0.3 percent,
and PCE decreased $13.3 billion, or 0.1 percent, based on revised estimates.
Real disposable income increased 0.3 percent in June, compared with an increase of 0.5 percent
in May. Real PCE decreased 0.1 percent, in contrast to an increase of 0.1 percent.
2012
Feb. Mar. Apr. May June
(Percent change from preceding month)
Personal income, current dollars 0.6 0.5 0.2 0.3 0.5
Disposable personal income:
Current dollars 0.6 0.5 0.1 0.3 0.4
Chained (2005) dollars 0.3 0.2 0.1 0.5 0.3
Personal consumption expenditures:
Current dollars 0.8 0.3 0.2 -0.1 0.0
Chained (2005) dollars 0.4 0.0 0.2 0.1 -0.1
BOX._______
The estimates released today reflect the results of the annual revision of the national income and
product accounts (NIPAs), beginning with estimates for January 2009. 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 2012 Survey of Current Business will contain NIPA tables and an article describing the
revisions. The revised estimates will be available on BEAs Web site at www.bea.gov by August 3, 2012.
_______
FOOTNOTE._______
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.
_______
Wages and salaries
Private wage and salary disbursements increased $31.9 billion in June, compared with an increase
of $9.7 billion in May. Goods-producing industries' payrolls increased $7.7 billion, in contrast
to a decrease of $6.5 billion; manufacturing payrolls increased $5.7 billion, in contrast to a
decrease of $3.8 billion. Services-producing industries' payrolls increased $24.2 billion,
compared with an increase of $16.1 billion. Government wage and salary disbursements
increased $0.6 billion, in contrast to a decrease of $0.6 billion.
Other personal income
Supplements to wages and salaries increased $4.7 billion in June, compared with an increase of $2.9 billion in May.
Proprietors' income increased $3.1 billion in June, compared with an increase of $5.8 billion in May.
Farm proprietors' income increased $2.0 billion, the same increase as in May. Nonfarm proprietors'
income increased $1.1 billion in June, compared with an increase of $3.9 billion in May.
Rental income of persons increased $2.5 billion in June, compared with an increase of $2.3 billion in May.
Personal income receipts on assets (personal interest income plus personal dividend income) increased
$19.3 billion, compared with an increase of $19.8 billion.
Personal current transfer receipts increased $3.2 billion in June, in contrast to a decrease of $0.1
billion in May. Within current transfer receipts, government social benefits to persons for social
security increased $7.8 billion in June, after remaining flat in May.
Contributions for government social insurance -- a subtraction in calculating personal income -- increased $3.5
billion in June, compared with an increase of $0.8 billion in May.
Personal current taxes and disposable personal income
Personal current taxes increased $9.3 billion in June, compared with an increase of $7.3 billion in May.
Disposable personal income (DPI) -- personal income less personal current taxes -- increased $52.4 billion,
or 0.4 percent, in June, compared with an increase of $31.7 billion, or 0.3 percent, in May.
Personal outlays and personal saving
Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- decreased
$4.8 billion inJune, compared with a decrease of $16.7 billion in May. PCE decreased $1.3 billion,
compared with a decrease of $13.3 billion.
Personal saving -- DPI less personal outlays -- was $529.5 billion in June, compared with $472.4 billion
in May. The personal saving rate -- personal saving as a percentage of DPI -- was 4.4 percent in June,
compared with 4.0 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, compared with an increase
of 0.5 percent in May.
Real PCE -- PCE adjusted to remove price changes -- decreased 0.1 percent in June, in contrast to an increase
of 0.1 percent in May. Purchases of durable goods increased less than 0.1 percent, in contrast to a decrease
of 0.4 percent. Purchases of nondurable goods decreased 0.4 percent, in contrast to an increase of 0.2 percent.
Purchases of services decreased less than 0.1 percent, in contrast to an increase of 0.1 percent.
PCE price index -- The price index for PCE increased 0.1 percent in June, in contrast to a decrease of 0.2 percent
in May. The PCE price index, excluding food and energy, increased 0.2 percent, compared with an increase of 0.1 percent.
Revisions of the Personal Income and Outlays Estimates for 2009 - 2011
Revised estimates, which begin with 2009, reflect the results of the annual revision of the national income
and product accounts. These revisions, usually made each July, incorporate newly available and more
comprehensive source data, as well as improved estimation methodologies. In this annual revision, the notable
revisions primarily reflect the incorporation of newly available and revised source data.
Revisions to annual estimates of personal income and outlays for 2009-2011 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 down for all 3 years: $63.2 billion, or 0.5 percent, for 2009; $51.6 billion,
or 0.4 percent, for 2010; and $43.9 billion, or 0.3 percent, for 2011. For 2009, downward revisions to
personal dividend income, to rental income of persons, and to personal interest income were partly offset
by an upward revision to nonfarm proprietors income. For 2010, a downward revision to personal dividend
income was partly offset by upward revisions to nonfarm proprietors income and to personal interest income.
For 2011, downward revisions to personal dividend income, to government social benefits to persons, and to
farm proprietors income were partly offset by upward revisions to nonfarm proprietors income, to supplements
to wages and salaries, and to personal interest income.
Disposable personal income (DPI) was revised down for all 3 years: $66.4 billion, or 0.6 percent, for 2009;
$52.6 billion, or 0.5 percent, for 2010; and $44.2 billion, or 0.4 percent, for 2011. Personal current taxes
was revised up for all 3 years: $3.2 billion for 2009, $0.9 billion for 2010, and $0.3 billion for 2011.
The percent change from the preceding year in real DPI was revised down from a decrease of 2.3 percent to a
decrease of 2.8 percent for 2009, was unrevised at 1.8 percent for 2010, and was revised up from an increase
of 1.2 percent to an increase of 1.3 percent for 2011.
Personal outlays was revised down $22.0 billion for 2009, was revised down $26.5 billion for 2010, and was
revised up $4.8 billion for 2011. For 2009 and 2010, downward revisions to PCE accounted for most of the
revisions to personal outlays. For 2011, upward revisions to personal interest payments and to PCE were
partly offset by a downward revision to personal current transfer payments to government.
The personal saving rate was revised down for all 3 years: from 5.1 percent to 4.7 percent for 2009,
from 5.3 percent to 5.1 percent for 2010, and from 4.6 percent to 4.2 percent for 2011.
NOTE. BEA acknowledges the special efforts by the Bureau of Labor Statistics with the assistance of 19 state
employment offices in providing preliminary data for the first quarter of 2012 from the quarterly census of
employment and wages. Wage and salary data from the state employment offices of California, Colorado, Connecticut,
Delaware, Florida, Georgia, Illinois, Kansas, Maryland, Massachusetts, Missouri, New Mexico, New Jersey, New York,
North Carolina, Ohio, Pennsylvania, Texas, and Utah were provided. These data should greatly improve the
estimates of wages and salaries.
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 - August 30, 2012 at 8:30 A.M. EDT for Personal Income and Outlays for July
