FOR WIRE TRANSMISSION: 8:30 A.M. EDT, FRIDAY, JULY 30, 1999 James E. Rankin: 202 606-5301 (Personal Income) BEA 99-24 Greg Key: 606-5302 (Personal Outlays) Recorded message: 606-5303 PERSONAL INCOME AND OUTLAYS: JUNE 1999 Personal income increased $52.0 billion, or 0.7 percent, and disposable personal income (DPI)increased $42.6 billion, or 0.7 percent, in June, according to the Commerce Department's Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $19.3 billion, or 0.3 percent. In May, personal income increased $25.1 billion, or 0.3 percent, DPI increased $15.5 billion, or 0.2 percent, and PCE increased $34.1 billion, or 0.6 percent, based on revised estimates. 1999 Feb. Mar. Apr. May June (Percent change from preceding month) Personal income, current dollars 0.4 0.3 0.5 0.3 0.7 Disposable personal income: Current dollars .4 .4 .4 .2 .7 Chained (1992) dollars .4 .3 -.2 .2 .7 Personal consumption expenditures: Current dollars .9 .6 .5 .6 .3 Chained (1992) dollars .8 .5 -.1 .6 .4 Wages and salaries Private wage and salary disbursements increased $20.2 billion in June, compared with an increase of $18.8 billion in May. Goods-producing industries' payrolls increased $4.7 billion in June, the same as in May; manufacturing payrolls increased $2.4 billion in June, compared with an increase of $4.6 billion in May. Distributive industries' payrolls increased $6.2 billion, compared with an increase of $2.6 billion. Service industries' payrolls increased $9.1 billion, compared with an increase of $11.6 billion. Government wage and salary disbursements increased $1.7 billion, compared with an increase of $1.3 billion. Other personal income Proprietors' income increased $18.9 billion in June, in contrast to a decrease of $1.2 billion in May. Farm proprietors' income increased $14.5 billion, in contrast to a decrease of $3.3 billion. The changes in farm proprietors' income reflect the pattern of subsidy payments made to farmers participating in the federal farm program. Nonfarm proprietors' income increased $4.4 billion in June, compared with an increase of $2.0 billion in May. Transfer payments increased $3.1 billion in June, compared with an increase of $1.2 billion in May. Personal interest income increased $2.8 billion, compared with an increase of $3.0 billion. Personal dividend income increased $1.4 billion in June, the same as in May. Rental income of persons increased $4.0 billion in June, compared with an increase of $0.7 billion in May. Personal contributions for social insurance -- a subtraction in calculating personal income -- increased $1.5 billion in June, the same as in May. Personal taxes and disposable personal income Personal tax and nontax payments increased $9.4 billion in June, compared with an increase of $9.7 billion in May. Disposable personal income (DPI) -- personal income less personal tax and nontax payments -- increased $42.6 billion, or 0.7 percent, in June, compared with an increase of $15.5 billion, or 0.2 percent, in May. Personal outlays and personal saving Personal outlays -- PCE, interest paid by persons, and personal transfer payments to the rest of the world (net) -- increased $20.8 billion in June, compared with an increase of $35.9 billion in May. PCE increased $19.3 billion, compared with an increase of $34.1 billion. Personal saving -- DPI less personal outlays -- was a negative $63.0 billion in June, compared with a negative $84.8 billion in May. Personal saving as a percentage of disposable personal income was a negative 1.0 percent in June, compared with a negative 1.4 percent in May. Chained (1992) dollar estimates Real DPI -- DPI adjusted to remove price changes -- increased 0.7 percent in June, compared with an increase of 0.2 percent in May. Real PCE -- PCE adjusted to remove price changes -- increased 0.4 percent in June, compared with an increase of 0.6 percent in May. Purchases of durable goods increased 0.3 percent, compared with an increase of 2.5 percent. Purchases of nondurable goods increased 0.5 percent in June, compared with an increase of 0.6 percent in May. Purchases of services increased 0.3 percent, compared with an increase of 0.1 percent. The increase in real PCE in June reflected a slight decrease in the PCE implicit price deflator. Revisions Estimates have been revised for April and May. Changes in personal income, current-dollar and chained (1992) dollar DPI, and current-dollar and chained (1992) dollar PCE for April and May -- revised and as published in last month's release -- are shown below. Change from preceding month April May Previous Revised Previous Revised Previous Revised Previous Revised (Dollars) (Percent) (Dollars) (Percent) Personal income: Current dollars . . 39.0 33.5 0.5 0.5 30.9 25.1 0.4 0.3 Disposable personal income: Current dollars . . 31.6 27.1 .5 .4 20.1 15.5 .3 .2 Chained (1992) dollars -3.2 -9.1 -.1 -.2 17.7 13.6 .3 .2 Personal consumption expenditures: Current dollars . . 30.8 29.0 .5 .5 35.7 34.1 .6 .6 Chained (1992) dollars -3.2 -6.8 -.1 -.1 31.4 29.9 .6 .6 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 of GDP 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 overview of the major improvements that will be introduced in the comprehensive revision is provided in a "technical note" that is posted on BEA's and STAT-USA's Web sites. Beginning with the August 1999 issue of the Survey, a series of articles will be presented that discuss the comprehensive revision. BEA's major national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA's Web site: www.bea.doc.gov STAT-USA maintains an electronic bulletin board (EBB) and an Internet site that contain BEA estimates, the Survey of Current Business, and BEA news releases. The information available through STAT-USA is often more detailed and more timely than that available from other sources. For information about STAT-USA, go to <www.stat-usa.gov>, or call (202) 482-1986. Subscriptions for single-user unlimited access to STAT-USA's Internet information are $50.00 for 3 months or $150.00 for 1 year. 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 U.S. 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, DC 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 July will be released on August 27, 1999, at 8:30 A.M. EDT. Table 1. -- Personal Income [Billions of dollars] -------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ----------------------------------------------------------- 1997 1998 Jan. 99 Feb. 99 Mar. 99 Apr. 99r May 99r June 99p -------------------------------------------------------------------------------------------------------------------------- Personal income..................... 6,784.0 7,126.1 7,320.2 7,352.9 7,374.9 7,408.4 7,433.5 7,485.5 Wage and salary disbursements..... 3,889.8 4,149.9 4,295.8 4,322.6 4,332.5 4,356.6 4,376.6 4,398.5 Private industries.............. 3,225.7 3,460.5 3,586.9 3,611.2 3,619.0 3,641.9 3,660.7 3,680.9 Goods-producing industries.... 975.0 1,026.9 1,045.0 1,049.3 1,049.9 1,055.6 1,060.3 1,065.0 Manufacturing............... 719.5 751.5 757.9 759.7 760.1 763.1 767.7 770.1 Distributive industries....... 879.8 939.6 967.1 973.8 973.4 979.2 981.8 988.0 Service industries............ 1,370.8 1,494.0 1,574.8 1,588.2 1,595.7 1,607.1 1,618.7 1,627.8 Government...................... 664.2 689.3 708.9 711.4 713.4 714.6 715.9 717.6 Other labor income................ 392.9 406.9 412.9 414.6 416.6 418.1 419.6 421.1 Proprietors' income with IVA and CCAdj........................... 551.2 577.2 596.8 598.8 599.3 604.4 603.2 622.1 Farm............................ 35.5 28.7 24.7 23.7 19.1 21.4 18.1 32.6 Nonfarm......................... 515.8 548.5 572.1 575.1 580.2 583.1 585.1 589.5 Rental income of persons with CCAdj........................... 158.2 162.6 166.3 167.8 168.9 169.2 169.9 173.9 Personal dividend income.......... 260.3 263.1 267.7 268.8 270.0 271.3 272.7 274.1 Personal interest income.......... 747.3 764.8 769.7 770.9 772.4 774.8 777.8 780.6 Transfer payments to persons...... 1,110.4 1,149.0 1,172.7 1,173.1 1,179.7 1,180.2 1,181.4 1,184.5 Old-age, survivors, disability, and health insurance benefits. 565.9 586.5 597.0 597.2 599.6 600.6 601.1 602.3 Government unemployment insurance benefits............ 19.9 19.5 19.5 19.5 19.7 19.2 19.2 19.4 Other........................... 524.6 542.9 556.2 556.4 560.4 560.3 561.0 562.8 Less: Personal contributions for social insurance................ 326.2 347.4 361.8 363.7 364.6 366.2 367.7 369.2 -------------------------------------------------------------------------------------------------------------------------- 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 Jan. 99 Feb. 99 Mar. 99 Apr. 99r May 99r June 99p -------------------------------------------------------------------------------------------------------------------------- Personal income....................... 6,784.0 7,126.1 7,320.2 7,352.9 7,374.9 7,408.4 7,433.5 7,485.5 Less: Personal tax and nontax payments........................... 989.0 1,098.3 1,138.9 1,147.2 1,146.1 1,152.5 1,162.2 1,171.6 Equals: Disposable personal income... 5,795.1 6,027.9 6,181.3 6,205.7 6,228.7 6,255.8 6,271.3 6,313.9 Less: Personal outlays............... 5,674.1 6,000.2 6,205.6 6,257.1 6,289.5 6,320.2 6,356.1 6,376.9 Personal consumption expenditures... 5,493.7 5,807.9 6,005.0 6,056.7 6,090.1 6,119.1 6,153.2 6,172.5 Interest paid by persons............ 161.5 172.4 180.3 180.2 179.2 180.5 182.3 183.8 Personal transfer payments to the rest of the world (net)........... 18.9 19.9 20.2 20.2 20.2 20.6 20.6 20.6 Equals: Personal saving.............. 121.0 27.7 -24.2 -51.5 -60.7 -64.3 -84.8 -63.0 Addenda: Disposable personal income: Chained (1992) dollars 1/........... 5,183.1 5,348.5 5,448.9 5,468.3 5,487.3 5,478.2 5,491.8 5,531.1 Per capita: Current dollars................... 21,633 22,304 22,738 22,813 22,881 22,963 23,001 23,138 Chained (1992) dollars............ 19,349 19,790 20,044 20,103 20,158 20,108 20,142 20,270 Population (thousands).............. 267,880 270,257 271,848 272,019 272,219 272,434 272,654 272,879 Personal saving as a percentage of disposable personal income ......... 2.1 0.5 -0.4 -0.8 -1.0 -1.0 -1.4 -1.0 -------------------------------------------------------------------------------------------------------------------------- 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 Jan. 99 Feb. 99 Mar. 99 Apr. 99r May 99r June 99p -------------------------------------------------------------------------------------------------------------------- Personal income....................... 358.8 342.1 43.4 32.7 22.0 33.5 25.1 52.0 Wage and salary disbursements........ 258.7 260.1 32.3 26.8 9.9 24.1 20.0 21.9 Private industries................ 235.5 234.8 24.2 24.3 7.8 22.9 18.8 20.2 Goods-producing industries...... 66.0 51.9 3.4 4.3 0.6 5.7 4.7 4.7 Manufacturing................. 44.9 32.0 3.7 1.8 0.4 3.0 4.6 2.4 Distributive industries......... 56.5 59.8 0.9 6.7 -0.4 5.8 2.6 6.2 Service industries.............. 112.9 123.2 20.0 13.4 7.5 11.4 11.6 9.1 Government........................ 23.3 25.1 8.0 2.5 2.0 1.2 1.3 1.7 Other labor income.................. 5.9 14.0 1.0 1.7 2.0 1.5 1.5 1.5 Proprietors' income with IVA and CCAdj............................. 23.5 26.0 3.9 2.0 0.5 5.1 -1.2 18.9 Farm.............................. -3.4 -6.8 -0.7 -1.0 -4.6 2.3 -3.3 14.5 Nonfarm........................... 27.0 32.7 4.6 3.0 5.1 2.9 2.0 4.4 Rental income of persons with CCAdj............................. 8.0 4.4 0.0 1.5 1.1 0.3 0.7 4.0 Personal dividend income............ 12.1 2.8 1.0 1.1 1.2 1.3 1.4 1.4 Personal interest income............ 27.9 17.5 0.3 1.2 1.5 2.4 3.0 2.8 Transfer payments to persons........ 42.4 38.6 11.0 0.4 6.6 0.5 1.2 3.1 Old-age, survivors, disability, and health insurance benefits... 27.9 20.6 3.8 0.2 2.4 1.0 0.5 1.2 Government unemployment insurance benefits.............. -2.0 -0.4 -0.1 0.0 0.2 -0.5 0.0 0.2 Other............................. 16.6 18.3 7.3 0.2 4.0 -0.1 0.7 1.8 Less: Personal contributions for social insurance.................. 19.9 21.2 6.2 1.9 0.9 1.6 1.5 1.5 Less: Personal tax and nontax payments............................ 98.5 109.3 8.8 8.3 -1.1 6.4 9.7 9.4 Equals: Disposable personal income.... 260.4 232.8 34.6 24.4 23.0 27.1 15.5 42.6 Less: Personal outlays................ 297.9 326.1 31.9 51.5 32.4 30.7 35.9 20.8 Personal consumption expenditures... 278.0 314.2 31.9 51.7 33.4 29.0 34.1 19.3 Interest paid by persons............ 17.9 10.9 0.2 -0.1 -1.0 1.3 1.8 1.5 Personal transfer payments to the rest of the world (net)........... 2.0 1.0 -0.4 0.0 0.0 0.4 0.0 0.0 Equals: Personal saving............... -37.5 -93.3 2.9 -27.3 -9.2 -3.6 -20.5 21.8 Addendum: Disposable personal income, chained (1992) dollars.......... 140.1 165.4 20.3 19.4 19.0 -9.1 13.6 39.3 -------------------------------------------------------------------------------------------------------------------- ----------------------------------------- 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 Jan. 99 Feb. 99 Mar. 99 Apr. 99r May 99r June 99p ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 5,493.7 5,807.9 6,005.0 6,056.7 6,090.1 6,119.1 6,153.2 6,172.5 Durable goods....................... 673.0 724.7 759.9 777.3 776.5 766.3 783.1 783.3 Nondurable goods.................... 1,600.6 1,662.4 1,720.4 1,739.4 1,748.2 1,763.0 1,772.0 1,778.9 Services............................ 3,220.1 3,420.8 3,524.7 3,540.1 3,565.4 3,589.8 3,598.1 3,610.3 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,913.5 5,153.3 5,293.5 5,337.1 5,365.2 5,358.4 5,388.3 5,407.2 Durable goods....................... 668.6 737.1 783.8 804.5 808.4 795.4 815.7 818.4 Nondurable goods.................... 1,486.3 1,544.1 1,585.2 1,604.5 1,613.0 1,603.3 1,613.0 1,621.8 Services............................ 2,761.5 2,879.5 2,936.9 2,943.9 2,959.6 2,972.4 2,975.6 2,983.5 -------------------------------------------------------------------------------- Implicit price deflators (Index numbers, 1992 = 100) -------------------------------------------------------------------------------- Personal consumption expenditures..... 111.81 112.70 113.44 113.48 113.51 114.20 114.20 114.15 Durable goods....................... 100.66 98.32 96.96 96.62 96.05 96.34 96.01 95.71 Nondurable goods.................... 107.69 107.66 108.52 108.40 108.38 109.96 109.85 109.69 Services............................ 116.61 118.80 120.02 120.25 120.47 120.77 120.92 121.01 ------------------------------------------------------------------------------------------------------------------------- Change from preceding period ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 278.0 314.2 31.9 51.7 33.4 29.0 34.1 19.3 Durable goods....................... 29.7 51.7 -13.3 17.4 -0.8 -10.2 16.8 0.2 Nondurable goods.................... 61.4 61.8 20.8 19.0 8.8 14.8 9.0 6.9 Services............................ 186.9 200.7 24.4 15.4 25.3 24.4 8.3 12.2 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 161.1 239.8 18.2 43.6 28.1 -6.8 29.9 18.9 Durable goods....................... 42.5 68.5 -12.3 20.7 3.9 -13.0 20.3 2.7 Nondurable goods.................... 35.4 57.8 14.8 19.3 8.5 -9.7 9.7 8.8 Services............................ 84.8 118.0 13.9 7.0 15.7 12.8 3.2 7.9 __________________________________________________________________________________________________________________________ Table 5. -- Percent Change From Preceding Period in Selected Series -------------------------------------------------------------------------------------------------------------------------- 1997 1998 Jan. 99 Feb. 99 Mar. 99 Apr. 99r May 99r June 99p -------------------------------------------------------------------------------------------------------------------------- Based on current dollars --------------------------------------------------------------------------------- Personal income....................... 5.6 5.0 0.6 0.4 0.3 0.5 0.3 0.7 Disposable personal income............ 4.7 4.0 0.6 0.4 0.4 0.4 0.2 0.7 Personal consumption expenditures..... 5.3 5.7 0.5 0.9 0.6 0.5 0.6 0.3 Durable goods....................... 4.6 7.7 -1.7 2.3 -0.1 -1.3 2.2 0.0 Nondurable goods.................... 4.0 3.9 1.2 1.1 0.5 0.8 0.5 0.4 Services............................ 6.2 6.2 0.7 0.4 0.7 0.7 0.2 0.3 --------------------------------------------------------------------------------- Based on chained (1992) dollars --------------------------------------------------------------------------------- Disposable personal income............ 2.8 3.2 0.4 0.4 0.3 -0.2 0.2 0.7 Personal consumption expenditures..... 3.4 4.9 0.3 0.8 0.5 -0.1 0.6 0.4 Durable goods....................... 6.8 10.2 -1.5 2.6 0.5 -1.6 2.5 0.3 Nondurable goods.................... 2.4 3.9 0.9 1.2 0.5 -0.6 0.6 0.5 Services............................ 3.2 4.3 0.5 0.2 0.5 0.4 0.1 0.3 -------------------------------------------------------------------------------------------------------------------------- ---------------------------------------- p Preliminary. r Revised. Source: U.S. Department of Commerce, Bureau of Economic Analysis.