FOR WIRE TRANSMISSION: 8:30 A.M. EST, FRIDAY, MARCH 27, 1998 James E. Rankin: (202) 606-5301 (Personal Income) BEA 98-8 Greg Key: 606-5302 (Personal Outlays) Recorded message: 606-5303 PERSONAL INCOME AND OUTLAYS: FEBRUARY 1998 Personal income increased $43.7 billion, or 0.6 percent, and disposable personal income (DPI) increased $34.1 billion, or 0.6 percent, in February, according to the Commerce Department's Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $23.1 billion, or 0.4 percent. In January, personal income increased $40.9 billion, or 0.6 percent, DPI increased $46.9 billion, or 0.8 percent, and PCE increased $37.4 billion, or 0.7 percent, based on revised estimates. 1997 1998 Oct. Nov. Dec. Jan. Feb. (Percent change from preceding month) Personal income, current dollars 0.5 0.7 0.4 0.6 0.6 Disposable personal income: Current dollars .4 .6 .4 .8 .6 Chained (1992) dollars .3 .5 .4 .8 .5 Personal consumption expenditures: Current dollars .4 .3 .4 .7 .4 Chained (1992) dollars .3 .2 .4 .6 .3 Wages and salaries Private wage and salary disbursements increased $32.1 billion in February, compared with an increase of $26.1 billion in January. In February, employment, average weekly hours, and average hourly earnings all increased. Goods- producing industries' payrolls increased $4.3 billion in February, compared with an increase of $3.1 billion in January; manufacturing payrolls increased $1.3 billion, compared with an increase of $0.4 billion. Distributive industries' payrolls increased $10.5 billion, compared with an increase of $8.8 billion. Service industries' payrolls increased $17.3 billion, compared with an increase of $14.2 billion. Government wage and salary disbursements increased $2.5 billion, compared with an increase of $4.3 billion. Other personal income Proprietors' income increased $1.3 billion in February, compared with an increase of $1.4 billion in January. Farm proprietors' income decreased $2.5 billion, compared with a decrease of $2.1 billion. Nonfarm proprietors' income increased $3.8 billion, compared with an increase of $3.5 billion. Transfer payments increased $5.5 billion in February, compared with an increase of $8.8 billion in January. The January change had been boosted by cost-of-living increases in social security benefits and other transfer payment programs. Personal interest income increased $1.8 billion, compared with an increase of $2.0 billion. Personal dividend income increased $1.9 billion, compared with an increase of $2.1 billion. Personal taxes and disposable personal income Personal tax and nontax payments increased $9.6 billion in February, in contrast to a decrease of $6.1 billion in January. In January, federal income tax payments were reduced $13.0 billion, reflecting the provisions of the Taxpayer Relief Act of 1997 and the indexation provisions of current tax law. Disposable personal income (DPI) -- personal income less personal tax and nontax payments -- increased $34.1 billion, or 0.6 percent, in February, compared with an increase of $46.9 billion, or 0.8 percent, in January. Personal outlays and personal saving Personal outlays -- personal consumption expenditures (PCE), interest paid by persons, and personal transfer payments to the rest of the world (net) -- increased $23.8 billion in February, compared with an increase of $36.0 billion in January. PCE increased $23.1 billion, compared with an increase of $37.4 billion. Personal saving -- DPI less personal outlays -- was $263.2 billion in February, compared with $252.9 billion in January. Personal saving as a percentage of disposable personal income was 4.3 percent in February, compared with 4.2 percent in January. Chained (1992) dollar estimates Real DPI -- DPI adjusted to remove price changes -- increased 0.5 percent in February, compared with an increase of 0.8 percent in January. Real PCE -- PCE adjusted to remove price changes -- increased 0.3 percent in February, compared with an increase of 0.6 percent in January. Purchases of durable goods increased 0.2 percent, compared with an increase of 2.2 percent. Purchases of nondurable goods increased 0.6 percent, compared with an increase of 0.8 percent. Purchases of services increased 0.3 percent in February, the same increase as in January. Revisions Estimates have been revised for October through January. Changes in personal income, current-dollar and chained (1992) dollar DPI, and current-dollar and chained (1992) dollar PCE for December and January -- revised and as published in last month's release -- are shown below. The upward revision to January PCE primarily reflects large upward revisions to the retail sales source data used to derive these estimates. Revisions for October and November were small. Change from preceding month December January Previous Revised Previous Revised Previous Revised Previous Revised (Dollars) (Percent) (Dollars) (Percent) Personal income: Current dollars . . 30.1 30.6 0.4 0.4 41.2 40.9 0.6 0.6 Disposable personal income: Current dollars . . 25.3 25.5 .4 .4 47.6 46.9 .8 .8 Chained (1992) dollars 21.5 22.5 .4 .4 38.6 40.4 .7 .8 Personal consumption expenditures: Current dollars . . 22.7 23.4 .4 .4 21.0 37.4 .4 .7 Chained (1992) dollars 19.2 20.6 .4 .4 15.5 32.1 .3 .6 * * * BEA's major national, international, regional, and industry estimates; selected articles from 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 $69.00 domestic. Second class mail: Annual subscription $35.00 domestic, $43.75 foreign; single issue $11.00 domestic, $13.75 foreign. * * * Next release -- Personal Income and Outlays for March will be released on May 1, at 8:30 A.M. EDT. Table 1. -- Personal Income [Billions of dollars] -------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ----------------------------------------------------------- 1996 1997 Sep. 97 Oct. 97r Nov. 97r Dec. 97r Jan. 98r Feb. 98p -------------------------------------------------------------------------------------------------------------------------- Personal income..................... 6,495.2 6,873.9 6,935.5 6,970.4 7,019.8 7,050.4 7,091.3 7,135.0 Wage and salary disbursements..... 3,632.5 3,877.4 3,916.1 3,943.6 3,989.9 4,007.9 4,038.3 4,072.9 Private industries.............. 2,989.9 3,212.1 3,246.2 3,271.7 3,316.0 3,332.5 3,358.6 3,390.7 Goods-producing industries.... 909.1 960.3 966.6 975.4 984.9 992.1 995.2 999.5 Manufacturing............... 674.7 706.0 710.0 717.8 724.4 728.1 728.5 729.8 Distributive industries....... 823.3 876.3 886.4 893.1 904.1 904.7 913.5 924.0 Service industries............ 1,257.5 1,375.5 1,393.3 1,403.1 1,427.0 1,435.7 1,449.9 1,467.2 Government...................... 642.6 665.3 669.8 671.9 673.9 675.4 679.7 682.2 Other labor income................ 407.6 416.6 418.9 420.1 421.4 422.6 423.9 425.1 Proprietors' income with IVA and CCAdj........................... 520.3 544.5 548.7 551.6 552.2 553.9 555.3 556.6 Farm............................ 37.2 40.7 39.0 38.5 38.1 38.1 36.0 33.5 Nonfarm......................... 483.1 503.8 509.6 513.1 514.1 515.8 519.3 523.1 Rental income of persons with CCAdj........................... 146.3 147.9 148.2 146.6 145.5 145.0 144.1 143.6 Personal dividend income.......... 291.2 321.5 326.6 328.6 330.7 332.8 334.9 336.8 Personal interest income.......... 735.7 768.6 774.3 776.3 778.3 780.5 782.5 784.3 Transfer payments to persons...... 1,068.0 1,121.1 1,129.0 1,131.5 1,132.9 1,140.0 1,148.8 1,154.3 Old-age, survivors, disability, and health insurance benefits. 537.6 566.7 570.4 572.0 572.7 577.8 582.6 585.0 Government unemployment insurance benefits............ 22.0 21.8 21.6 21.4 21.4 21.6 21.4 21.4 Other........................... 508.4 532.7 537.0 538.1 538.8 540.6 544.8 547.8 Less: Personal contributions for social insurance................ 306.3 323.7 326.1 327.9 331.0 332.2 336.4 338.6 -------------------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------ 1996 1997 Sep. 97 Oct. 97r Nov. 97r Dec. 97r Jan. 98r Feb. 98p -------------------------------------------------------------------------------------------------------------------------- Personal income....................... 6,495.2 6,873.9 6,935.5 6,970.4 7,019.8 7,050.4 7,091.3 7,135.0 Less: Personal tax and nontax payments........................... 886.9 988.7 1,003.5 1,012.1 1,024.4 1,029.7 1,023.6 1,033.2 Equals: Disposable personal income... 5,608.3 5,885.2 5,932.0 5,958.3 5,995.3 6,020.8 6,067.7 6,101.8 Less: Personal outlays............... 5,368.8 5,658.5 5,712.6 5,735.8 5,752.4 5,778.8 5,814.8 5,838.6 Personal consumption expenditures... 5,207.6 5,485.8 5,537.8 5,559.3 5,575.4 5,598.8 5,636.2 5,659.3 Interest paid by persons............ 145.2 154.8 156.6 157.8 158.3 161.3 159.9 160.6 Personal transfer payments to the rest of the world (net)........... 15.9 17.9 18.2 18.7 18.7 18.7 18.7 18.7 Equals: Personal saving.............. 239.6 226.7 219.4 222.5 243.0 242.0 252.9 263.2 Addenda: Disposable personal income: Chained (1992) dollars 1/........... 5,076.9 5,221.9 5,247.8 5,264.7 5,293.6 5,316.1 5,356.5 5,382.7 Per capita: Current dollars................... 21,117 21,969 22,102 22,183 22,299 22,373 22,535 22,648 Chained (1992) dollars............ 19,116 19,493 19,553 19,601 19,689 19,754 19,893 19,979 Population (thousands).............. 265,579 267,889 268,391 268,594 268,859 269,108 269,263 269,423 Personal saving as a percentage of disposable personal income ......... 4.3 3.9 3.7 3.7 4.1 4.0 4.2 4.3 -------------------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------ 1996 1997 Sep. 97 Oct. 97r Nov. 97r Dec. 97r Jan. 98r Feb. 98p -------------------------------------------------------------------------------------------------------------------- Personal income....................... 344.4 378.7 23.3 34.9 49.4 30.6 40.9 43.7 Wage and salary disbursements........ 203.0 244.9 13.8 27.5 46.3 18.0 30.4 34.6 Private industries................ 183.4 222.2 11.7 25.5 44.3 16.5 26.1 32.1 Goods-producing industries...... 44.7 51.2 4.6 8.8 9.5 7.2 3.1 4.3 Manufacturing................. 26.3 31.3 3.5 7.8 6.6 3.7 0.4 1.3 Distributive industries......... 40.2 53.0 2.7 6.7 11.0 0.6 8.8 10.5 Service industries.............. 98.5 118.0 4.4 9.8 23.9 8.7 14.2 17.3 Government........................ 19.6 22.7 2.0 2.1 2.0 1.5 4.3 2.5 Other labor income.................. 0.8 9.0 1.3 1.2 1.3 1.2 1.3 1.2 Proprietors' income with IVA and CCAdj............................. 31.4 24.2 2.6 2.9 0.6 1.7 1.4 1.3 Farm.............................. 13.8 3.5 -1.8 -0.5 -0.4 0.0 -2.1 -2.5 Nonfarm........................... 17.6 20.7 4.3 3.5 1.0 1.7 3.5 3.8 Rental income of persons with CCAdj............................. 13.5 1.6 -0.3 -1.6 -1.1 -0.5 -0.9 -0.5 Personal dividend income............ 39.3 30.3 2.1 2.0 2.1 2.1 2.1 1.9 Personal interest income............ 16.8 32.9 1.8 2.0 2.0 2.2 2.0 1.8 Transfer payments to persons........ 53.0 53.1 3.1 2.5 1.4 7.1 8.8 5.5 Old-age, survivors, disability, and health insurance benefits... 29.8 29.1 0.0 1.6 0.7 5.1 4.8 2.4 Government unemployment insurance benefits.............. 0.6 -0.2 0.2 -0.2 0.0 0.2 -0.2 0.0 Other............................. 22.7 24.3 2.9 1.1 0.7 1.8 4.2 3.0 Less: Personal contributions for social insurance.................. 13.2 17.4 0.9 1.8 3.1 1.2 4.2 2.2 Less: Personal tax and nontax payments............................ 91.8 101.8 4.2 8.6 12.3 5.3 -6.1 9.6 Equals: Disposable personal income.... 252.6 276.9 19.0 26.3 37.0 25.5 46.9 34.1 Less: Personal outlays................ 267.7 289.7 13.3 23.2 16.6 26.4 36.0 23.8 Personal consumption expenditures... 249.9 278.2 12.0 21.5 16.1 23.4 37.4 23.1 Interest paid by persons............ 16.7 9.6 1.4 1.2 0.5 3.0 -1.4 0.7 Personal transfer payments to the rest of the world (net)........... 1.1 2.0 0.0 0.5 0.0 0.0 0.0 0.0 Equals: Personal saving............... -15.0 -12.9 5.7 3.1 20.5 -1.0 10.9 10.3 Addenda: Disposable personal income, chained (1992) dollars.......... 112.7 145.0 8.0 16.9 28.9 22.5 40.4 26.2 -------------------------------------------------------------------------------------------------------------------- ----------------------------------------- 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 --------------------------------------------------------- 1996 1997 Sep. 97 Oct. 97r Nov. 97r Dec. 97r Jan. 98r Feb. 98p ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 5,207.6 5,485.8 5,537.8 5,559.3 5,575.4 5,598.8 5,636.2 5,659.3 Durable goods....................... 634.5 659.3 660.7 655.4 670.0 675.1 688.3 688.5 Nondurable goods.................... 1,534.7 1,592.0 1,604.9 1,604.8 1,600.9 1,597.0 1,607.4 1,615.2 Services............................ 3,038.4 3,234.5 3,272.2 3,299.1 3,304.5 3,326.6 3,340.5 3,355.7 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,714.1 4,867.5 4,899.0 4,912.2 4,922.8 4,943.4 4,975.5 4,992.4 Durable goods....................... 611.1 645.5 650.9 647.0 663.0 667.9 682.6 684.1 Nondurable goods.................... 1,432.3 1,458.5 1,465.6 1,464.0 1,460.6 1,458.1 1,469.2 1,477.5 Services............................ 2,671.0 2,764.1 2,783.2 2,800.7 2,800.3 2,818.2 2,826.1 2,833.3 -------------------------------------------------------------------------------- Implicit price deflators (Index numbers, 1992 = 100) -------------------------------------------------------------------------------- Personal consumption expenditures..... 110.47 112.70 113.04 113.17 113.26 113.26 113.28 113.36 Durable goods....................... 103.83 102.12 101.51 101.30 101.06 101.08 100.82 100.65 Nondurable goods.................... 107.15 109.15 109.51 109.62 109.61 109.53 109.41 109.32 Services............................ 113.76 117.02 117.57 117.79 118.00 118.04 118.20 118.44 ------------------------------------------------------------------------------------------------------------------------- Change from preceding period ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 249.9 278.2 12.0 21.5 16.1 23.4 37.4 23.1 Durable goods....................... 26.0 24.8 -9.8 -5.3 14.6 5.1 13.2 0.2 Nondurable goods.................... 58.9 57.3 5.1 -0.1 -3.9 -3.9 10.4 7.8 Services............................ 165.0 196.1 16.7 26.9 5.4 22.1 13.9 15.2 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 118.8 153.4 2.2 13.2 10.6 20.6 32.1 16.9 Durable goods....................... 27.5 34.4 -9.0 -3.9 16.0 4.9 14.7 1.5 Nondurable goods.................... 19.7 26.2 0.8 -1.6 -3.4 -2.5 11.1 8.3 Services............................ 71.4 93.1 9.1 17.5 -0.4 17.9 7.9 7.2 __________________________________________________________________________________________________________________________ Table 5. -- Percent Change From Preceding Period in Selected Series -------------------------------------------------------------------------------------------------------------------------- 1996 1997 Sep. 97 Oct. 97r Nov. 97r Dec. 97r Jan. 98r Feb. 98p -------------------------------------------------------------------------------------------------------------------------- Based on current dollars --------------------------------------------------------------------------------- Personal income....................... 5.6 5.8 0.3 0.5 0.7 0.4 0.6 0.6 Disposable personal income............ 4.7 4.9 0.3 0.4 0.6 0.4 0.8 0.6 Personal consumption expenditures..... 5.0 5.3 0.2 0.4 0.3 0.4 0.7 0.4 Durable goods....................... 4.3 3.9 -1.5 -0.8 2.2 0.8 1.9 0.0 Nondurable goods.................... 4.0 3.7 0.3 0.0 -0.2 -0.2 0.6 0.5 Services............................ 5.7 6.5 0.5 0.8 0.2 0.7 0.4 0.5 --------------------------------------------------------------------------------- Based on chained (1992) dollars --------------------------------------------------------------------------------- Disposable personal income............ 2.3 2.9 0.2 0.3 0.5 0.4 0.8 0.5 Personal consumption expenditures..... 2.6 3.3 0.0 0.3 0.2 0.4 0.6 0.3 Durable goods....................... 4.7 5.6 -1.4 -0.6 2.5 0.7 2.2 0.2 Nondurable goods.................... 1.4 1.8 0.1 -0.1 -0.2 -0.2 0.8 0.6 Services............................ 2.7 3.5 0.3 0.6 0.0 0.6 0.3 0.3 -------------------------------------------------------------------------------------------------------------------------- ---------------------------------------- p Preliminary. r Revised. Source: U.S. Department of Commerce, Bureau of Economic Analysis.