FOR WIRE TRANSMISSION: 8:30 A.M. EST, MONDAY, JUNE 28, 1999 James E. Rankin: 202 606-5301 (Personal Income) BEA 99-20 Greg Key: 606-5302 (Personal Outlays) Recorded message: 606-5303 PERSONAL INCOME AND OUTLAYS: MAY 1999 Personal income increased $30.9 billion, or 0.4 percent, and disposable personal income (DPI) increased $20.1 billion, or 0.3 percent, in May, according to the Commerce Department's Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $35.7 billion, or 0.6 percent. In April, personal income increased $39.0 billion, or 0.5 percent, DPI increased $31.6 billion, or 0.5 percent, and PCE increased $30.8 billion, or 0.5 percent, based on revised estimates. 1999 Jan. Feb. Mar. Apr. May (Percent change from preceding month) Personal income, current dollars 0.6 0.4 0.3 0.5 0.4 Disposable personal income: Current dollars .6 .4 .4 .5 .3 Chained (1992) dollars .4 .4 .3 -.1 .3 Personal consumption expenditures: Current dollars .5 .9 .6 .5 .6 Chained (1992) dollars .3 .8 .5 -.1 .6 Wages and salaries Private wage and salary disbursements increased $22.4 billion in May, compared with an increase of $24.5 billion in April. Goods-producing industries' payrolls increased $4.1 billion, compared with an increase of $6.0 billion; manufacturing payrolls increased $4.1 billion, compared with an increase of $3.3 billion. Distributive industries' payrolls increased $3.7 billion, compared with an increase of $6.5 billion. Service industries' payrolls increased $14.6 billion, compared with an increase of $12.0 billion. Government wage and salary disbursements increased $1.2 billion, compared with an increase of $2.1 billion. Other personal income Proprietors' income decreased $0.6 billion in May, in contrast to an increase of $7.2 billion in April. Farm proprietors' income decreased $3.0 billion, in contrast to an increase of $2.6 billion. Nonfarm proprietors' income increased $2.3 billion, compared with an increase of $4.6 billion. Transfer payments increased $1.6 billion in May, compared with an increase of $1.0 billion in April. Personal interest income increased $4.2 billion, compared with an increase of $2.3 billion. Personal dividend income increased $1.4 billion, compared with an increase of $1.3 billion. Rental income of persons increased $0.5 billion, compared with an increase of $0.6 billion. Personal contributions for social insurance -- a subtraction in calculating personal income -- increased $1.7 billion in May, compared with an increase of $1.9 billion in April. Personal taxes and disposable personal income Personal tax and nontax payments increased $10.9 billion in May, compared with an increase of $7.4 billion in April. Disposable personal income (DPI) -- personal income less personal tax and nontax payments -- increased $20.1 billion, or 0.3 percent, in May, compared with an increase of $31.6 billion, or 0.5 percent, in April. Personal outlays and personal saving Personal outlays -- PCE, interest paid by persons, and personal transfer payments to the rest of the world (net) -- increased $36.3 billion in May, compared with an increase of $31.7 billion in April. PCE increased $35.7 billion, compared with an increase of $30.8 billion. Personal saving -- DPI less personal outlays -- was a negative $77.1 billion in May, compared with a negative $60.8 billion in April. Personal saving as a percentage of disposable personal income was a negative 1.2 percent in May, compared with a negative 1.0 percent in April. Chained (1992) dollar estimates Real DPI -- DPI adjusted to remove price changes -- increased 0.3 percent in May, in contrast to a decrease of 0.1 percent in April. Real PCE -- PCE adjusted to remove price changes -- increased 0.6 percent in May, in contrast to a decrease of 0.1 percent in April. Purchases of durable goods increased 2.5 percent, in contrast to a decrease of 1.2 percent; purchases of motor vehicles accounted for about two-thirds of the May increase and of the April decrease. Purchases of nondurable goods increased 0.5 percent in May, in contrast to a decrease of 0.6 percent in April. Purchases of services increased 0.2 percent, compared with an increase of 0.4 percent. Revisions Estimates have been revised for January through April. Changes in personal income, current-dollar and chained (1992) dollar DPI, and current-dollar and chained (1992) dollar PCE for March and April -- revised and as published in last month's release -- are shown below. Revisions for January and February were small. Change from preceding month March April Previous Revised Previous Revised Previous Revised Previous Revised (Dollars) (Percent) (Dollars) (Percent) Personal income: Current dollars . . 22.3 22.0 0.3 0.3 36.4 39.0 0.5 0.5 Disposable personal income: Current dollars . . 24.1 23.0 .4 .4 29.4 31.6 .5 .5 Chained (1992) dollars 20.3 19.0 .4 .3 -4.2 -3.2 -.1 -.1 Personal consumption expenditures: Current dollars . . 30.5 33.4 .5 .6 27.0 30.8 .4 .5 Chained (1992) dollars 25.9 28.1 .5 .5 -5.6 -3.2 -.1 -.1 * * * As announced in the February issue of the Survey of Current Business, the Bureau of Economic Analysis plans to release the results of its 11th comprehensive, or benchmark, revision of the national income and product accounts (NIPA's) beginning on October 28, 1999, along with the release of the advance estimates for the third quarter of 1999. The annual revision of the NIPA's that would normally take place this summer will instead be combined with the upcoming comprehensive revision. An article previewing the definitional and statistical changes that will be introduced in the comprehensive revision is scheduled for the August issue of the Survey. BEA's major national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available on BEA's web site: http://www.bea.gov STAT-USA maintains an electronic bulletin board (EBB) and an Internet site, which contain BEA estimates, BEA news releases, and the Survey of Current Business. The information available through STAT-USA is often more detailed and more timely than that available from other sources. To subscribe to STAT-USA's World Wide Web system, go to http://www.stat-usa.gov. Subscriptions for single-user unlimited access to STAT-USA's Internet information are $50.00 for 3 months or $150.00 for 1 year. For further information, call (202) 482-1986. Summary BEA estimates are available on recorded messages at the time of public release at the following telephone numbers: (202) 606-5306 Gross domestic product 606-5303 Personal income and outlays 606-5362 Summary of international transactions Most of BEA's estimates and analyses appear in the Survey of Current Business, BEA's monthly journal. The printed Survey of Current Business is available from the Superintendent of Documents, U.S. Government Printing Office, Washington D.C. 20402. First class mail: Annual subscription $104.00 domestic. Second class mail: Annual subscription $42.00 domestic, $52.50 foreign; single issue $15.00 domestic, $18.75 foreign. * * * Next release -- Personal Income and Outlays for June will be released on July 30, at 8:30 A.M. EDT. Table 1. -- Personal Income [Billions of dollars] -------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ----------------------------------------------------------- 1997 1998 Dec. 98 Jan. 99r Feb. 99r Mar. 99r Apr. 99r May 99p -------------------------------------------------------------------------------------------------------------------------- Personal income..................... 6,784.0 7,126.1 7,276.8 7,320.2 7,352.9 7,374.9 7,413.9 7,444.8 Wage and salary disbursements..... 3,889.8 4,149.9 4,263.5 4,295.8 4,322.6 4,332.5 4,359.0 4,382.6 Private industries.............. 3,225.7 3,460.5 3,562.7 3,586.9 3,611.2 3,619.0 3,643.5 3,665.9 Goods-producing industries.... 975.0 1,026.9 1,041.6 1,045.0 1,049.3 1,049.9 1,055.9 1,060.0 Manufacturing............... 719.5 751.5 754.2 757.9 759.7 760.1 763.4 767.5 Distributive industries....... 879.8 939.6 966.2 967.1 973.8 973.4 979.9 983.6 Service industries............ 1,370.8 1,494.0 1,554.8 1,574.8 1,588.2 1,595.7 1,607.7 1,622.3 Government...................... 664.2 689.3 700.9 708.9 711.4 713.4 715.5 716.7 Other labor income................ 392.9 406.9 411.9 412.9 414.6 416.6 418.6 420.6 Proprietors' income with IVA and CCAdj........................... 551.2 577.2 592.9 596.8 598.8 599.3 606.5 605.9 Farm............................ 35.5 28.7 25.4 24.7 23.7 19.1 21.7 18.7 Nonfarm......................... 515.8 548.5 567.5 572.1 575.1 580.2 584.8 587.1 Rental income of persons with CCAdj........................... 158.2 162.6 166.3 166.3 167.8 168.9 169.5 170.0 Personal dividend income.......... 260.3 263.1 266.7 267.7 268.8 270.0 271.3 272.7 Personal interest income.......... 747.3 764.8 769.4 769.7 770.9 772.4 774.7 778.9 Transfer payments to persons...... 1,110.4 1,149.0 1,161.7 1,172.7 1,173.1 1,179.7 1,180.7 1,182.3 Old-age, survivors, disability, and health insurance benefits. 565.9 586.5 593.2 597.0 597.2 599.6 600.7 602.2 Government unemployment insurance benefits............ 19.9 19.5 19.6 19.5 19.5 19.7 19.3 19.5 Other........................... 524.6 542.9 548.9 556.2 556.4 560.4 560.7 560.6 Less: Personal contributions for social insurance................ 326.2 347.4 355.6 361.8 363.7 364.6 366.5 368.2 -------------------------------------------------------------------------------------------------------------------------- p Preliminary. r Revised. IVA Inventory valuation adjustment CCAdj Capital consumption adjustment Source: U.S. Department of Commerce, Bureau of Economic Analysis. Table 2. -- The Disposition of Personal Income [Billions of dollars] -------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ------------------------------------------------------ 1997 1998 Dec. 98 Jan. 99r Feb. 99r Mar. 99r Apr. 99r May 99p -------------------------------------------------------------------------------------------------------------------------- Personal income....................... 6,784.0 7,126.1 7,276.8 7,320.2 7,352.9 7,374.9 7,413.9 7,444.8 Less: Personal tax and nontax payments........................... 989.0 1,098.3 1,130.1 1,138.9 1,147.2 1,146.1 1,153.5 1,164.4 Equals: Disposable personal income... 5,795.1 6,027.9 6,146.7 6,181.3 6,205.7 6,228.7 6,260.3 6,280.4 Less: Personal outlays............... 5,674.1 6,000.2 6,173.7 6,205.6 6,257.1 6,289.5 6,321.2 6,357.5 Personal consumption expenditures... 5,493.7 5,807.9 5,973.1 6,005.0 6,056.7 6,090.1 6,120.9 6,156.6 Interest paid by persons............ 161.5 172.4 180.1 180.3 180.2 179.2 180.0 180.7 Personal transfer payments to the rest of the world (net)........... 18.9 19.9 20.6 20.2 20.2 20.2 20.2 20.2 Equals: Personal saving.............. 121.0 27.7 -27.1 -24.2 -51.5 -60.7 -60.8 -77.1 Addenda: Disposable personal income: Chained (1992) dollars 1/........... 5,183.1 5,348.5 5,428.6 5,448.9 5,468.3 5,487.3 5,484.1 5,501.8 Per capita: Current dollars................... 21,633 22,304 22,624 22,738 22,813 22,881 22,979 23,034 Chained (1992) dollars............ 19,349 19,790 19,981 20,044 20,103 20,158 20,130 20,179 Population (thousands).............. 267,880 270,257 271,684 271,848 272,019 272,219 272,434 272,654 Personal saving as a percentage of disposable personal income ......... 2.1 0.5 -0.4 -0.4 -0.8 -1.0 -1.0 -1.2 -------------------------------------------------------------------------------------------------------------------------- p Preliminary. r Revised. 1/ Disposable personal income in chained (1992) dollars equals the current-dollar figure divided by the implicit price deflator for personal consumption expenditures. Source: U.S. Department of Commerce, Bureau of Economic Analysis. Table 3. -- Personal Income and Its Disposition, Change From Preceding Period [Billions of dollars] -------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ------------------------------------------------------ 1997 1998 Dec. 98 Jan. 99r Feb. 99r Mar. 99r Apr. 99r May 99p -------------------------------------------------------------------------------------------------------------------- Personal income....................... 358.8 342.1 -3.0 43.4 32.7 22.0 39.0 30.9 Wage and salary disbursements........ 258.7 260.1 19.6 32.3 26.8 9.9 26.5 23.6 Private industries................ 235.5 234.8 18.3 24.2 24.3 7.8 24.5 22.4 Goods-producing industries...... 66.0 51.9 5.1 3.4 4.3 0.6 6.0 4.1 Manufacturing................. 44.9 32.0 0.7 3.7 1.8 0.4 3.3 4.1 Distributive industries......... 56.5 59.8 4.3 0.9 6.7 -0.4 6.5 3.7 Service industries.............. 112.9 123.2 8.7 20.0 13.4 7.5 12.0 14.6 Government........................ 23.3 25.1 1.5 8.0 2.5 2.0 2.1 1.2 Other labor income.................. 5.9 14.0 0.9 1.0 1.7 2.0 2.0 2.0 Proprietors' income with IVA and CCAdj............................. 23.5 26.0 -21.9 3.9 2.0 0.5 7.2 -0.6 Farm.............................. -3.4 -6.8 -27.6 -0.7 -1.0 -4.6 2.6 -3.0 Nonfarm........................... 27.0 32.7 5.8 4.6 3.0 5.1 4.6 2.3 Rental income of persons with CCAdj............................. 8.0 4.4 -5.3 0.0 1.5 1.1 0.6 0.5 Personal dividend income............ 12.1 2.8 1.0 1.0 1.1 1.2 1.3 1.4 Personal interest income............ 27.9 17.5 -0.4 0.3 1.2 1.5 2.3 4.2 Transfer payments to persons........ 42.4 38.6 4.4 11.0 0.4 6.6 1.0 1.6 Old-age, survivors, disability, and health insurance benefits... 27.9 20.6 3.6 3.8 0.2 2.4 1.1 1.5 Government unemployment insurance benefits.............. -2.0 -0.4 0.1 -0.1 0.0 0.2 -0.4 0.2 Other............................. 16.6 18.3 0.8 7.3 0.2 4.0 0.3 -0.1 Less: Personal contributions for social insurance.................. 19.9 21.2 1.4 6.2 1.9 0.9 1.9 1.7 Less: Personal tax and nontax payments............................ 98.5 109.3 4.7 8.8 8.3 -1.1 7.4 10.9 Equals: Disposable personal income.... 260.4 232.8 -7.8 34.6 24.4 23.0 31.6 20.1 Less: Personal outlays................ 297.9 326.1 55.8 31.9 51.5 32.4 31.7 36.3 Personal consumption expenditures... 278.0 314.2 53.9 31.9 51.7 33.4 30.8 35.7 Interest paid by persons............ 17.9 10.9 2.0 0.2 -0.1 -1.0 0.8 0.7 Personal transfer payments to the rest of the world (net)........... 2.0 1.0 0.0 -0.4 0.0 0.0 0.0 0.0 Equals: Personal saving............... -37.5 -93.3 -63.7 2.9 -27.3 -9.2 -0.1 -16.3 Addendum: Disposable personal income, chained (1992) dollars.......... 140.1 165.4 -12.7 20.3 19.4 19.0 -3.2 17.7 -------------------------------------------------------------------------------------------------------------------- p Preliminary. r Revised. IVA Inventory valuation adjustment CCAdj Capital consumption adjustment Source: U.S. Department of Commerce, Bureau of Economic Analysis. Table 4. -- Personal Consumption Expenditures by Major Type of Product ------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates --------------------------------------------------------- 1997 1998 Dec. 98 Jan. 99r Feb. 99r Mar. 99r Apr. 99r May 99p ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 5,493.7 5,807.9 5,973.1 6,005.0 6,056.7 6,090.1 6,120.9 6,156.6 Durable goods....................... 673.0 724.7 773.2 759.9 777.3 776.5 769.5 786.4 Nondurable goods.................... 1,600.6 1,662.4 1,699.6 1,720.4 1,739.4 1,748.2 1,763.2 1,771.4 Services............................ 3,220.1 3,420.8 3,500.3 3,524.7 3,540.1 3,565.4 3,588.2 3,598.9 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,913.5 5,153.3 5,275.3 5,293.5 5,337.1 5,365.2 5,362.0 5,393.4 Durable goods....................... 668.6 737.1 796.1 783.8 804.5 808.4 798.8 819.1 Nondurable goods.................... 1,486.3 1,544.1 1,570.4 1,585.2 1,604.5 1,613.0 1,604.0 1,612.2 Services............................ 2,761.5 2,879.5 2,923.0 2,936.9 2,943.9 2,959.6 2,972.5 2,978.4 -------------------------------------------------------------------------------- Implicit price deflators (Index numbers, 1992 = 100) -------------------------------------------------------------------------------- Personal consumption expenditures..... 111.81 112.70 113.23 113.44 113.48 113.51 114.15 114.15 Durable goods....................... 100.66 98.32 97.12 96.96 96.62 96.05 96.33 96.01 Nondurable goods.................... 107.69 107.66 108.23 108.52 108.40 108.38 109.93 109.87 Services............................ 116.61 118.80 119.75 120.02 120.25 120.47 120.71 120.83 ------------------------------------------------------------------------------------------------------------------------- Change from preceding period ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 278.0 314.2 53.9 31.9 51.7 33.4 30.8 35.7 Durable goods....................... 29.7 51.7 31.2 -13.3 17.4 -0.8 -7.0 16.9 Nondurable goods.................... 61.4 61.8 8.4 20.8 19.0 8.8 15.0 8.2 Services............................ 186.9 200.7 14.3 24.4 15.4 25.3 22.8 10.7 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 161.1 239.8 42.0 18.2 43.6 28.1 -3.2 31.4 Durable goods....................... 42.5 68.5 34.3 -12.3 20.7 3.9 -9.6 20.3 Nondurable goods.................... 35.4 57.8 3.4 14.8 19.3 8.5 -9.0 8.2 Services............................ 84.8 118.0 8.8 13.9 7.0 15.7 12.9 5.9 __________________________________________________________________________________________________________________________ Table 5. -- Percent Change From Preceding Period in Selected Series -------------------------------------------------------------------------------------------------------------------------- 1997 1998 Dec. 98 Jan. 99r Feb. 99r Mar. 99r Apr. 99r May 99p -------------------------------------------------------------------------------------------------------------------------- Based on current dollars --------------------------------------------------------------------------------- Personal income....................... 5.6 5.0 0.0 0.6 0.4 0.3 0.5 0.4 Disposable personal income............ 4.7 4.0 -0.1 0.6 0.4 0.4 0.5 0.3 Personal consumption expenditures..... 5.3 5.7 0.9 0.5 0.9 0.6 0.5 0.6 Durable goods....................... 4.6 7.7 4.2 -1.7 2.3 -0.1 -0.9 2.2 Nondurable goods.................... 4.0 3.9 0.5 1.2 1.1 0.5 0.9 0.5 Services............................ 6.2 6.2 0.4 0.7 0.4 0.7 0.6 0.3 --------------------------------------------------------------------------------- Based on chained (1992) dollars --------------------------------------------------------------------------------- Disposable personal income............ 2.8 3.2 -0.2 0.4 0.4 0.3 -0.1 0.3 Personal consumption expenditures..... 3.4 4.9 0.8 0.3 0.8 0.5 -0.1 0.6 Durable goods....................... 6.8 10.2 4.5 -1.5 2.6 0.5 -1.2 2.5 Nondurable goods.................... 2.4 3.9 0.2 0.9 1.2 0.5 -0.6 0.5 Services............................ 3.2 4.3 0.3 0.5 0.2 0.5 0.4 0.2 -------------------------------------------------------------------------------------------------------------------------- p Preliminary. r Revised. Source: U.S. Department of Commerce, Bureau of Economic Analysis.