News Release

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, Monday, January 30, 2017
BEA 17-04

Personal Income and Outlays, December 2016

Personal income increased $50.2 billion (0.3 percent) in December according to estimates released today
by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $43.6 billion (0.3 percent)
and personal consumption expenditures (PCE) increased $63.1 billion (0.5 percent).

Real DPI increased 0.1 percent in December and Real PCE increased 0.3 percent. The PCE price index increased
0.2 percent. Excluding food and energy, the PCE price index increased 0.1 percent.

                                                                2016
                                                Aug.     Sept.     Oct.     Nov.     Dec.
                                                   Percent change from preceding month
Personal income:
 Current dollars                                0.2      0.4       0.5      0.1      0.3
Disposable personal income:
 Current dollars                                0.2      0.3       0.5      0.1      0.3
 Chained (2009) dollars                         0.1      0.1       0.2      0.0      0.1
Personal consumption expenditures (PCE):
 Current dollars                                0.1      0.7       0.4      0.2      0.5
 Chained (2009) dollars                        -0.1      0.5       0.1      0.2      0.3
Price indexes:
 PCE                                            0.2      0.2       0.3      0.1      0.2
 PCE, excluding food and energy                 0.2      0.1       0.1      0.0      0.1
Price indexes:
                                                 Percent change from month one year ago
 PCE                                            1.0      1.2       1.4      1.4      1.6
 PCE, excluding food and energy                 1.7      1.7       1.8      1.7      1.7

The increase in personal income in December primarily reflected increases in wages and salaries, personal
current transfer receipts, and rental income of persons (table 3).

The increase in real PCE in December primarily reflected increases in spending for both durable
goods and services (table 7).

Personal outlays increased $66.4 billion in December (table 3). Personal saving was $768.4 billion in
December and the personal saving rate, personal saving as a percentage of disposable personal income,
was 5.4 percent (table 1).

2016 Personal Income and Outlays

Personal income (table 6) increased 3.5 percent in 2016 (that is, from the 2015 annual level to the
2016 annual level), compared with an increase of 4.4 percent in 2015. DPI increased 3.8 percent in 2016,
the same increase as in 2015. In 2016, PCE increased 3.8 percent, compared with an increase of 3.5 percent in 2015.

Real DPI increased 2.7 percent in 2016, compared with an increase of 3.5 percent in 2015. Real PCE (table 8)
increased 2.7 percent, compared with an increase of 3.2 percent.

Updates

Estimates have been updated for October and November. The percent change from the preceding month for
current-dollar personal income, and for current-dollar and chained (2009) dollar DPI and PCE
-- revised and as published in last month's release -- are shown below.

                                                        Change from preceding month
                                                  October                                 November
                                Previous   Revised   Previous   Revised   Previous   Revised   Previous   Revised
                               (Billions of dollars)      (Percent)      (Billions of dollars)      (Percent)
Personal income:
 Current dollars                    78.0      76.6        0.5       0.5        1.6       9.2        0.0       0.1
Disposable personal income:
 Current dollars                    65.2      66.9        0.5       0.5       -1.3       9.3        0.0       0.1
 Chained (2009) dollars             25.4      27.7        0.2       0.2       -6.4       1.7       -0.1       0.0
Personal consumption expenditures:
 Current dollars                    51.4      45.2        0.4       0.4       24.0      28.8        0.2       0.2
 Chained (2009) dollars             16.0      11.1        0.1       0.1       16.8      19.8        0.1       0.2

                                Next release:  March 1, 2017 at 8:30 A.M. EST
                                 Personal Income and Outlays:  January 2017