FOR WIRE TRANSMISSION: 8:30 A.M. EDT, FRIDAY, OCTOBER 1, 1999 James E. Rankin: 202 606-5301 (Personal Income) BEA 99-29 Greg Key: 606-5302 (Personal Outlays) Recorded message: 606-5303 PERSONAL INCOME AND OUTLAYS: AUGUST 1999 Personal income increased $39.1 billion, or 0.5 percent, and disposable personal income (DPI) increased $46.2 billion, or 0.7 percent, in August, according to the Commerce Department's Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $54.4 billion, or 0.9 percent. In July, personal income increased $16.8 billion, or 0.2 percent, DPI increased $8.5 billion, or 0.1 percent, and PCE increased $22.0 billion, or 0.4 percent, based on revised estimates. 1999 Apr. May June July Aug. (Percent change from preceding month) Personal income, current dollars 0.4 0.3 0.7 0.2 0.5 Disposable personal income: Current dollars .4 .2 .7 .1 .7 Chained (1992) dollars -.2 .3 .8 -.1 .5 Personal consumption expenditures: Current dollars .6 .5 .3 .4 .9 Chained (1992) dollars .0 .6 .4 .1 .6 Wages and salaries Private wage and salary disbursements increased $22.1 billion in August, compared with an increase of $29.1 billion in July. Goods-producing industries' payrolls decreased $3.4 billion, in contrast to an increase of $8.5 billion; manufacturing payrolls decreased $1.8 billion, in contrast to an increase of $6.1 billion. Distributive industries' payrolls increased $5.0 billion, compared with an increase of $8.1 billion. Service industries' payrolls increased $20.5 billion, compared with an increase of $12.6 billion. Government wage and salary disbursements increased $3.1 billion, compared with an increase of $2.7 billion. Other personal income Farm proprietors' income decreased $1.2 billion in August, compared with a decrease of $18.7 billion in July. The changes in farm proprietors' income reflect the pattern of disaster relief subsidy payments made to farmers participating in the federal farm program. The July decrease reflected disaster subsidy payments to farm proprietors in June of $1.6 billion ($19.3 billion at an annual rate). Excluding disaster subsidy payments, farm proprietors' income decreased $0.8 billion in August, in contrast to an increase of $0.2 billion in July. Nonfarm proprietors' income increased $3.9 billion in August, compared with an increase of $1.2 billion in July. Transfer payments increased $3.6 billion, compared with an increase of $1.5 billion. Personal interest income increased $3.0 billion, compared with an increase of $3.1 billion. Personal dividend income increased $1.6 billion, compared with an increase of $1.4 billion. Rental income of persons increased $3.2 billion, in contrast to a decrease of $2.8 billion. Personal contributions for social insurance -- a subtraction in calculating personal income -- increased $1.8 billion in August, compared with an increase of $2.3 billion in July. Personal taxes and disposable personal income Personal tax and nontax payments decreased $7.1 billion in August, in contrast to an increase of $8.3 billion in July. The August decrease reflected a $1.3 billion ($15.6 billion at an annual rate) tax rebate in Minnesota that is classified as a personal tax refund in the national income and product accounts. Disposable personal income (DPI) -- personal income less personal tax and nontax payments -- increased $46.2 billion, or 0.7 percent, in August, compared with an increase of $8.5 billion, or 0.1 percent, in July. Personal outlays and personal saving Personal outlays -- PCE, interest paid by persons, and personal transfer payments to the rest of the world (net) -- increased $56.1 billion in August, compared with an increase of $23.4 billion in July. PCE increased $54.4 billion, compared with an increase of $22.0 billion. Personal saving -- DPI less personal outlays -- was a negative $93.0 billion in August, compared with a negative $83.1 billion in July. Personal saving as a percentage of disposable personal income was a negative 1.5 percent in August, compared with a negative 1.3 percent in July. Chained (1992) dollar estimates Real DPI -- DPI adjusted to remove price changes -- increased 0.5 percent in August, in contrast to a decrease of 0.1 percent in July. Real PCE -- PCE adjusted to remove price changes -- increased 0.6 percent in August, compared with an increase of 0.1 percent in July. Purchases of durable goods increased 2.8 percent, in contrast to a decrease of 0.7 percent; purchases of motor vehicles accounted for most of the August increase and more than accounted for the July decrease. Purchases of nondurable goods increased 0.4 percent in August, compared with an increase of less than 0.1 percent in July. Purchases of services increased 0.3 percent in August, the same increase as in July. Revisions Estimates have been revised for April through July. Changes in personal income, current-dollar and chained (1992) dollar DPI, and current-dollar and chained (1992) dollar PCE for June and July -- revised and as published in the prior release -- are shown below. Revisions for April and May were small. Change from preceding month June July Previous Revised Previous Revised Previous Revised Previous Revised (Dollars) (Percent) (Dollars) (Percent) Personal income: Current dollars . . 54.8 55.7 0.7 0.7 17.3 16.8 0.2 0.2 Disposable personal income: Current dollars . . 46.0 46.6 .7 .7 9.3 8.5 .1 .1 Chained (1992) dollars 42.4 46.1 .8 .8 -4.1 -6.4 -.1 -.1 Personal consumption expenditures: Current dollars . . 17.8 17.4 .3 .3 25.3 22.0 .4 .4 Chained (1992) dollars 17.5 20.4 .3 .4 10.1 5.7 .2 .1 * * * In the next GDP news release, scheduled for October 28, 1999, the Bureau of Economic Analysis plans to release the initial results of its 11th comprehensive, or benchmark, revision of the national income and product accounts (NIPA's) along with the release of the advance estimates for the third quarter of 1999. The August and September issues of the Survey of Current Business presented the first two in a series of articles on 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 Internet site that contains 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: 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 $120.00 domestic. Second class mail: Annual subscription $48.00 domestic, $60.00 foreign; single issue $17.25 domestic, $21.56 foreign. Next release -- November 2, 1999 at 8:30 A.M. EST for: Comprehensive revision (1959 through August 1999) and September personal income and outlays. Table 1. -- Personal Income [Billions of dollars] -------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ----------------------------------------------------------- 1997 1998 Mar. 99 Apr. 99r May 99r June 99r July 99r Aug. 99p -------------------------------------------------------------------------------------------------------------------------- Personal income..................... 6,784.0 7,126.1 7,374.9 7,406.6 7,430.3 7,486.0 7,502.8 7,541.9 Wage and salary disbursements..... 3,889.8 4,149.9 4,332.5 4,356.6 4,377.3 4,401.6 4,433.5 4,458.7 Private industries.............. 3,225.7 3,460.5 3,619.0 3,641.9 3,661.4 3,683.7 3,712.8 3,734.9 Goods-producing industries.... 975.0 1,026.9 1,049.9 1,055.6 1,060.7 1,065.9 1,074.4 1,071.0 Manufacturing............... 719.5 751.5 760.1 763.1 767.9 771.6 777.7 775.9 Distributive industries....... 879.8 939.6 973.4 979.2 980.7 988.1 996.2 1,001.2 Service industries............ 1,370.8 1,494.0 1,595.7 1,607.1 1,620.0 1,629.6 1,642.2 1,662.7 Government...................... 664.2 689.3 713.4 714.7 715.9 717.9 720.6 723.7 Other labor income................ 392.9 406.9 416.6 418.1 419.6 421.1 422.6 424.1 Proprietors' income with IVA and CCAdj........................... 551.2 577.2 599.3 602.8 601.4 623.0 605.3 608.2 Farm............................ 35.5 28.7 19.1 19.2 15.5 32.4 13.7 12.5 Nonfarm......................... 515.8 548.5 580.2 583.5 585.9 590.5 591.7 595.6 Rental income of persons with CCAdj........................... 158.2 162.6 168.9 169.2 168.7 171.5 168.7 171.9 Personal dividend income.......... 260.3 263.1 270.0 271.3 272.7 274.1 275.5 277.1 Personal interest income.......... 747.3 764.8 772.4 774.9 777.8 780.8 783.9 786.9 Transfer payments to persons...... 1,110.4 1,149.0 1,179.7 1,180.0 1,180.6 1,183.6 1,185.1 1,188.7 Old-age, survivors, disability, and health insurance benefits. 565.9 586.5 599.6 600.6 601.1 602.4 603.9 604.5 Government unemployment insurance benefits............ 19.9 19.5 19.7 19.3 19.2 19.6 19.2 19.3 Other........................... 524.6 542.9 560.4 560.1 560.3 561.6 562.0 564.9 Less: Personal contributions for social insurance................ 326.2 347.4 364.6 366.3 367.8 369.6 371.9 373.7 -------------------------------------------------------------------------------------------------------------------------- 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 Mar. 99 Apr. 99r May 99r June 99r July 99r Aug. 99p -------------------------------------------------------------------------------------------------------------------------- Personal income....................... 6,784.0 7,126.1 7,374.9 7,406.6 7,430.3 7,486.0 7,502.8 7,541.9 Less: Personal tax and nontax payments........................... 989.0 1,098.3 1,146.1 1,152.5 1,162.9 1,171.9 1,180.2 1,173.1 Equals: Disposable personal income... 5,795.1 6,027.9 6,228.7 6,254.1 6,267.5 6,314.1 6,322.6 6,368.8 Less: Personal outlays............... 5,674.1 6,000.2 6,289.5 6,331.1 6,362.5 6,382.3 6,405.7 6,461.8 Personal consumption expenditures... 5,493.7 5,807.9 6,090.1 6,129.3 6,159.2 6,176.6 6,198.6 6,253.0 Interest paid by persons............ 161.5 172.4 179.2 180.4 182.0 184.4 185.8 187.5 Personal transfer payments to the rest of the world (net)........... 18.9 19.9 20.2 21.3 21.3 21.3 21.3 21.3 Equals: Personal saving.............. 121.0 27.7 -60.7 -77.0 -95.0 -68.2 -83.1 -93.0 Addenda: Disposable personal income: Chained (1992) dollars 1/........... 5,183.1 5,348.5 5,487.3 5,476.8 5,493.2 5,539.3 5,532.9 5,560.3 Per capita: Current dollars................... 21,633 22,304 22,881 22,956 22,987 23,138 23,148 23,295 Chained (1992) dollars............ 19,349 19,790 20,158 20,103 20,147 20,299 20,257 20,337 Population (thousands).............. 267,880 270,257 272,219 272,434 272,654 272,892 273,142 273,401 Personal saving as a percentage of disposable personal income ......... 2.1 0.5 -1.0 -1.2 -1.5 -1.1 -1.3 -1.5 -------------------------------------------------------------------------------------------------------------------------- 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 Mar. 99 Apr. 99r May 99r June 99r July 99r Aug. 99p -------------------------------------------------------------------------------------------------------------------- Personal income....................... 358.8 342.1 22.0 31.7 23.7 55.7 16.8 39.1 Wage and salary disbursements........ 258.7 260.1 9.9 24.1 20.7 24.3 31.9 25.2 Private industries................ 235.5 234.8 7.8 22.9 19.5 22.3 29.1 22.1 Goods-producing industries...... 66.0 51.9 0.6 5.7 5.1 5.2 8.5 -3.4 Manufacturing................. 44.9 32.0 0.4 3.0 4.8 3.7 6.1 -1.8 Distributive industries......... 56.5 59.8 -0.4 5.8 1.5 7.4 8.1 5.0 Service industries.............. 112.9 123.2 7.5 11.4 12.9 9.6 12.6 20.5 Government........................ 23.3 25.1 2.0 1.3 1.2 2.0 2.7 3.1 Other labor income.................. 5.9 14.0 2.0 1.5 1.5 1.5 1.5 1.5 Proprietors' income with IVA and CCAdj............................. 23.5 26.0 0.5 3.5 -1.4 21.6 -17.7 2.9 Farm.............................. -3.4 -6.8 -4.6 0.1 -3.7 16.9 -18.7 -1.2 Nonfarm........................... 27.0 32.7 5.1 3.3 2.4 4.6 1.2 3.9 Rental income of persons with CCAdj............................. 8.0 4.4 1.1 0.3 -0.5 2.8 -2.8 3.2 Personal dividend income............ 12.1 2.8 1.2 1.3 1.4 1.4 1.4 1.6 Personal interest income............ 27.9 17.5 1.5 2.5 2.9 3.0 3.1 3.0 Transfer payments to persons........ 42.4 38.6 6.6 0.3 0.6 3.0 1.5 3.6 Old-age, survivors, disability, and health insurance benefits... 27.9 20.6 2.4 1.0 0.5 1.3 1.5 0.6 Government unemployment insurance benefits.............. -2.0 -0.4 0.2 -0.4 -0.1 0.4 -0.4 0.1 Other............................. 16.6 18.3 4.0 -0.3 0.2 1.3 0.4 2.9 Less: Personal contributions for social insurance.................. 19.9 21.2 0.9 1.7 1.5 1.8 2.3 1.8 Less: Personal tax and nontax payments............................ 98.5 109.3 -1.1 6.4 10.4 9.0 8.3 -7.1 Equals: Disposable personal income.... 260.4 232.8 23.0 25.4 13.4 46.6 8.5 46.2 Less: Personal outlays................ 297.9 326.1 32.4 41.6 31.4 19.8 23.4 56.1 Personal consumption expenditures... 278.0 314.2 33.4 39.2 29.9 17.4 22.0 54.4 Interest paid by persons............ 17.9 10.9 -1.0 1.2 1.6 2.4 1.4 1.7 Personal transfer payments to the rest of the world (net)........... 2.0 1.0 0.0 1.1 0.0 0.0 0.0 0.0 Equals: Personal saving............... -37.5 -93.3 -9.2 -16.3 -18.0 26.8 -14.9 -9.9 Addendum: Disposable personal income, chained (1992) dollars.......... 140.1 165.4 19.0 -10.5 16.4 46.1 -6.4 27.4 -------------------------------------------------------------------------------------------------------------------- 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 Mar. 99 Apr. 99r May 99r June 99r July 99r Aug. 99p ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 5,493.7 5,807.9 6,090.1 6,129.3 6,159.2 6,176.6 6,198.6 6,253.0 Durable goods....................... 673.0 724.7 776.5 774.7 789.1 791.1 785.4 805.9 Nondurable goods.................... 1,600.6 1,662.4 1,748.2 1,764.6 1,772.0 1,775.3 1,781.5 1,795.5 Services............................ 3,220.1 3,420.8 3,565.4 3,590.0 3,598.2 3,610.2 3,631.7 3,651.6 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,913.5 5,153.3 5,365.2 5,367.5 5,398.3 5,418.7 5,424.4 5,459.2 Durable goods....................... 668.6 737.1 808.4 804.2 821.8 826.5 821.0 843.9 Nondurable goods.................... 1,486.3 1,544.1 1,613.0 1,604.9 1,613.0 1,618.5 1,618.8 1,625.2 Services............................ 2,761.5 2,879.5 2,959.6 2,972.6 2,980.2 2,990.8 3,000.3 3,009.0 -------------------------------------------------------------------------------- Implicit price deflators (Index numbers, 1992 = 100) -------------------------------------------------------------------------------- Personal consumption expenditures..... 111.81 112.70 113.51 114.19 114.09 113.99 114.27 114.54 Durable goods....................... 100.66 98.32 96.05 96.34 96.01 95.71 95.66 95.50 Nondurable goods.................... 107.69 107.66 108.38 109.95 109.85 109.69 110.05 110.48 Services............................ 116.61 118.80 120.47 120.77 120.74 120.71 121.05 121.35 ------------------------------------------------------------------------------------------------------------------------- Change from preceding period ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 278.0 314.2 33.4 39.2 29.9 17.4 22.0 54.4 Durable goods....................... 29.7 51.7 -0.8 -1.8 14.4 2.0 -5.7 20.5 Nondurable goods.................... 61.4 61.8 8.8 16.4 7.4 3.3 6.2 14.0 Services............................ 186.9 200.7 25.3 24.6 8.2 12.0 21.5 19.9 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 161.1 239.8 28.1 2.3 30.8 20.4 5.7 34.8 Durable goods....................... 42.5 68.5 3.9 -4.2 17.6 4.7 -5.5 22.9 Nondurable goods.................... 35.4 57.8 8.5 -8.1 8.1 5.5 0.3 6.4 Services............................ 84.8 118.0 15.7 13.0 7.6 10.6 9.5 8.7 __________________________________________________________________________________________________________________________ Table 5. -- Percent Change From Preceding Period in Selected Series -------------------------------------------------------------------------------------------------------------------------- 1997 1998 Mar. 99 Apr. 99r May 99r June 99r July 99r Aug. 99p -------------------------------------------------------------------------------------------------------------------------- Based on current dollars --------------------------------------------------------------------------------- Personal income....................... 5.6 5.0 0.3 0.4 0.3 0.7 0.2 0.5 Disposable personal income............ 4.7 4.0 0.4 0.4 0.2 0.7 0.1 0.7 Personal consumption expenditures..... 5.3 5.7 0.6 0.6 0.5 0.3 0.4 0.9 Durable goods....................... 4.6 7.7 -0.1 -0.2 1.9 0.3 -0.7 2.6 Nondurable goods.................... 4.0 3.9 0.5 0.9 0.4 0.2 0.3 0.8 Services............................ 6.2 6.2 0.7 0.7 0.2 0.3 0.6 0.5 --------------------------------------------------------------------------------- Based on chained (1992) dollars --------------------------------------------------------------------------------- Disposable personal income............ 2.8 3.2 0.3 -0.2 0.3 0.8 -0.1 0.5 Personal consumption expenditures..... 3.4 4.9 0.5 0.0 0.6 0.4 0.1 0.6 Durable goods....................... 6.8 10.2 0.5 -0.5 2.2 0.6 -0.7 2.8 Nondurable goods.................... 2.4 3.9 0.5 -0.5 0.5 0.3 0.0 0.4 Services............................ 3.2 4.3 0.5 0.4 0.3 0.4 0.3 0.3 -------------------------------------------------------------------------------------------------------------------------- p Preliminary. r Revised. Source: U.S. Department of Commerce, Bureau of Economic Analysis.