FOR WIRE TRANSMISSION: 8:30 A.M. EDT, MONDAY, JULY 1, 1996 George M. Smith: (202) 606-5301 (Personal Income) BEA 96-19 Clinton P. McCully: 606-5302 (Personal Outlays) Recorded message: 606-5303 PERSONAL INCOME AND OUTLAYS: MAY 1996 Personal income increased $28.0 billion, or 0.4 percent, and disposable personal income (DPI) increased $72.8 billion, or 1.3 percent, in May, according to the Commerce Department's Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $42.7 billion, or 0.8 percent. In April, personal income increased $30.3 billion, or 0.5 percent, DPI decreased $29.0 billion, or 0.5 percent, and PCE increased $13.4 billion, or 0.3 percent, based on revised estimates. 1996 Jan. Feb. Mar. Apr. May (Percent change from preceding month) Personal income, current dollars 0.1 0.7 0.4 0.5 0.4 Disposable personal income: Current dollars 0 .6 .3 -.5 1.3 Chained (1992) dollars -.2 .5 0 -.8 1.2 Personal consumption expenditures: Current dollars -.4 1.1 .4 .3 .8 Chained (1992) dollars -.6 1.0 .2 0 .7 The May increase and April decrease in disposable personal income -- personal income less personal tax and nontax payments -- reflect a large increase in April tax payments due to certain provisions of the Omnibus Budget Reconciliation Act of 1993, as discussed more fully below. The April increase in personal income partially reflects a rebound from the effects of a strike in the motor vehicle industry, which reduced wages and salaries in that industry by approximately $8 billion in March. Because the other effects of the strike are embedded in BEA's source data and cannot easily be separated, BEA does not attempt to quantify their impact. Wages and salaries Private wage and salary disbursements increased $17.0 billion in May, compared with an increase of $17.7 billion in April. Commodity-producing industries' payrolls increased $3.8 billion, compared with an increase of $12.2 billion. Manufacturing payrolls increased $1.8 billion, compared with an increase of $11.4 billion; the April increase reflects a rebound from the effects of a March strike in the motor vehicle industry. Distributive industries' payrolls increased $5.4 billion in May, in contrast to a decrease of $1.7 billion in April. Service industries' payrolls increased $7.8 billion, compared with an increase of $7.1 billion. Government wage and salary disbursements increased $1.5 billion, compared with an increase of $1.4 billion. Other personal income Proprietors' income increased $2.7 billion in May, compared with an increase of $2.6 billion in April. Farm proprietors' income increased $0.3 billion, compared with an increase of $0.8 billion. Nonfarm proprietors' income increased $2.3 billion, compared with an increase of $1.8 billion. Transfer payments increased $2.9 billion in May, compared with an increase of $4.2 billion in April. Personal interest income increased $2.5 billion, compared with an increase of $2.6 billion. Personal taxes and disposable personal income Personal tax and nontax payments decreased $44.8 billion in May, in contrast to an increase of $59.3 billion in April. The May decrease and the April increase reflect unusually large federal income tax payments in April (about $50 billion at an annual rate) due to provisions of the Omnibus Budget Reconciliation Act of 1993 that retroactively increased tax rates for high income taxpayers for tax year 1993. Persons affected by the higher rates had the option of paying the additional tax in three annual installments, the last of which was due April 15, 1996. Disposable personal income (DPI) -- personal income less personal tax and nontax payments -- increased $72.8 billion, or 1.3 percent, in May, in contrast to a decrease of $29.0 billion, or 0.5 percent, in April. 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 $43.4 billion in May, compared with an increase of $14.3 billion in April. PCE increased $42.8 billion, compared with an increase of $13.4 billion. Personal saving -- disposable personal income less personal outlays -- was $222.5 billion in May, compared with $193.0 billion in April. Personal saving as a percentage of disposable personal income was 4.0 percent in May, compared with 3.5 percent for April. Chained (1992) dollar estimates Real DPI -- DPI adjusted to remove price changes -- increased 1.2 percent in May, in contrast to a decrease of 0.8 percent in April. Real PCE -- PCE adjusted to remove price changes -- increased 0.7 percent in May, in contrast to a decrease of less than 0.1 percent in April. Purchases of durable goods increased 4.2 percent, in contrast to a decrease of 0.9 percent; motor vehicle purchases accounted for most of the May increase and more than accounted for the April decrease. Purchases of nondurable goods decreased 0.3 percent in May, in contrast to an increase of 0.3 percent in April. Purchases of services increased 0.4 percent, in contrast to a decrease of less than 0.1 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 29.8 26.1 0.5 0.4 29.9 30.3 0.5 0.5 Disposable personal income: Current dollars 21.2 17.4 .4 .3 -29.0 -29.0 -.5 -.5 Chained (1992) dollars 5.2 1.8 .1 0 -43.0 -42.2 -.9 -.8 Personal consumption expenditures: Current dollars 27.5 22.7 .5 .4 4.8 13.4 .1 .3 Chained (1992) dollars 12.1 7.6 .3 .2 -11.0 -2.2 -.2 0 * * * BEA estimates are available in several forms besides the printed news releases. News releases are available at the time of public release through three subscription services offered by the Commerce Department's STAT-USA. Information on how to receive releases by FAX may be obtained by calling (202) 482-1986 (voice). Information about the Economic Bulletin Board (EBB) and about Internet services may be obtained at the same voice number and on-line, as follows: EBB (202) 482-3870 Internet http://www.stat-usa.gov In addition, BEA's most frequently requested statistical series are available on the Internet, as follows: The Federal Statistics Briefing Room (FSBR) on the White House web site provides summary statistics for GDP and other major aggregates on its output, income, and international statistics pages. http://www.whitehouse.gov/fsbr The FSBR provides links to BEA's web site, which provides summary tables and charts on BEA's national, international, and regional data. http://www.bea.gov BEA's web site provides links to detailed BEA databases on STAT-USA's Internet subscription service. http://www.stat-usa.gov Summary estimates are available on recorded messages at the time of public release at the following telephone numbers: (202) 606 - 5306 Gross domestic product 5303 Personal income and outlays 5362 Summary of international transactions Most of BEA's estimates and analyses appear in the Survey of Current Business, BEA's monthly journal. The 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 $90.00 domestic. Second class mail: annual subscription $49.00 domestic, $61.25 foreign; single issue $11.00 domestic, $13.75 foreign. In addition, the Survey of Current Business is now available on the Internet in a searchable, retrievable electronic format at least a week before the printed version. 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. As announced in recent issues of the Survey of Current Business, the next annual revision of the national income and product accounts (NIPA's) will be in July 1997. A revision to be released August 1, 1996 (quarterly estimates) and August 2, 1996 (monthly personal income and outlays estimates) will be limited to a small number of improvements. Next release -- Personal Income and Outlays for June will be released on August 2, at 8:30 A.M. EDT. Table 1. -- Personal Income [Billions of dollars] -------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates ----------------------------------------------------------- 1994 1995 Dec. 95 Jan. 96r Feb. 96r Mar. 96r Apr. 96r May 96p -------------------------------------------------------------------------------------------------------------------------- Personal income..................... 5,750.2 6,101.7 6,246.4 6,249.6 6,294.8 6,320.9 6,351.2 6,379.2 Wage and salary disbursements..... 3,241.1 3,419.7 3,493.7 3,489.6 3,527.7 3,543.2 3,562.3 3,580.8 Private industries.............. 2,638.6 2,797.9 2,865.5 2,857.0 2,893.7 2,907.8 2,925.5 2,942.5 Commodity-producing industries 825.0 858.7 864.5 859.1 871.5 867.9 880.1 883.9 Manufacturing............... 621.3 642.8 645.5 639.4 646.4 643.1 654.5 656.3 Distributive industries....... 739.3 787.9 811.9 811.0 823.2 830.8 829.1 834.5 Service industries............ 1,074.3 1,151.3 1,189.1 1,186.9 1,199.0 1,209.2 1,216.3 1,224.1 Government...................... 602.5 621.7 628.1 632.6 634.0 635.4 636.8 638.3 Other labor income................ 402.2 424.0 431.7 427.4 429.1 430.8 432.4 434.0 Proprietors' income with IVA and CCAdj........................... 450.9 478.3 490.1 493.2 500.1 505.2 507.8 510.5 Farm............................ 35.0 29.0 33.2 36.2 38.8 40.1 40.9 41.2 Nonfarm......................... 415.9 449.3 456.9 457.0 461.3 465.1 466.9 469.2 Rental income of persons with CCAdj........................... 116.6 122.2 130.7 129.1 126.7 125.0 125.8 126.4 Personal dividend income.......... 199.6 214.8 223.8 225.3 226.5 227.9 228.7 229.4 Personal interest income.......... 661.6 714.6 729.3 726.5 723.7 722.3 724.9 727.4 Transfer payments to persons...... 956.3 1,022.6 1,046.9 1,057.4 1,062.5 1,069.0 1,073.2 1,076.1 Old-age, survivors, disability, and health insurance benefits. 472.9 507.4 520.5 525.4 529.4 534.9 534.7 536.6 Government unemployment insurance benefits............ 23.7 21.6 22.1 22.5 22.2 21.9 22.0 21.9 Other........................... 459.7 493.6 504.4 509.5 510.9 512.2 516.5 517.6 Less: Personal contributions for social insurance................ 278.1 294.5 299.7 298.9 301.5 302.7 304.0 305.4 -------------------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------ 1994 1995 Dec. 95 Jan. 96r Feb. 96r Mar. 96r Apr. 96r May 96p -------------------------------------------------------------------------------------------------------------------------- Personal income....................... 5,750.2 6,101.7 6,246.4 6,249.6 6,294.8 6,320.9 6,351.2 6,379.2 Less: Personal tax and nontax payments........................... 731.4 794.3 809.2 814.1 826.1 834.7 894.0 849.2 Equals: Disposable personal income... 5,018.8 5,307.4 5,437.3 5,435.5 5,468.8 5,486.2 5,457.2 5,530.0 Less: Personal outlays............... 4,826.5 5,066.7 5,185.2 5,167.7 5,226.5 5,249.8 5,264.1 5,307.5 Personal consumption expenditures... 4,698.7 4,924.3 5,035.1 5,016.9 5,074.2 5,096.9 5,110.3 5,153.1 Interest paid by persons............ 117.2 131.7 139.2 140.7 142.1 142.8 143.7 144.3 Personal transfer payments to the rest of the world (net)........... 10.6 10.6 10.8 10.1 10.1 10.1 10.1 10.1 Equals: Personal saving.............. 192.4 240.8 252.1 267.8 242.3 236.4 193.0 222.5 Addenda: Disposable personal income: Chained (1992) dollars 1/........... 4,775.6 4,934.7 5,020.0 5,007.9 5,030.5 5,032.3 4,990.1 5,049.5 Per capita: Current dollars................... 19,253 20,173 20,579 20,559 20,672 20,723 20,597 20,856 Chained (1992) dollars............ 18,320 18,757 18,999 18,941 19,015 19,008 18,834 19,044 Population (thousands).............. 260,681 263,090 264,220 264,391 264,554 264,743 264,946 265,154 Personal saving as a percentage of disposable personal income ......... 3.8 4.5 4.6 4.9 4.4 4.3 3.5 4.0 -------------------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------ 1994 1995 Dec. 95 Jan. 96r Feb. 96r Mar. 96r Apr. 96r May 96p -------------------------------------------------------------------------------------------------------------------- Personal income....................... 271.0 351.5 39.1 3.2 45.2 26.1 30.3 28.0 Wage and salary disbursements........ 150.5 178.6 19.2 -4.1 38.1 15.5 19.1 18.5 Private industries................ 132.3 159.3 17.8 -8.5 36.7 14.1 17.7 17.0 Commodity-producing industries.. 43.7 33.7 1.7 -5.4 12.4 -3.6 12.2 3.8 Manufacturing................. 28.2 21.5 1.5 -6.1 7.0 -3.3 11.4 1.8 Distributive industries......... 40.9 48.6 4.1 -0.9 12.2 7.6 -1.7 5.4 Service industries.............. 47.7 77.0 12.0 -2.2 12.1 10.2 7.1 7.8 Government........................ 18.3 19.2 1.3 4.5 1.4 1.4 1.4 1.5 Other labor income.................. 21.3 21.8 1.5 -4.3 1.7 1.7 1.6 1.6 Proprietors' income with IVA and CCAdj............................. 30.9 27.4 3.2 3.1 6.9 5.1 2.6 2.7 Farm.............................. 3.0 -6.0 1.3 3.0 2.6 1.3 0.8 0.3 Nonfarm........................... 27.8 33.4 1.9 0.1 4.3 3.8 1.8 2.3 Rental income of persons with CCAdj............................. 14.1 5.6 3.3 -1.6 -2.4 -1.7 0.8 0.6 Personal dividend income............ 12.8 15.2 1.9 1.5 1.2 1.4 0.8 0.7 Personal interest income............ 14.3 53.0 3.9 -2.8 -2.8 -1.4 2.6 2.5 Transfer payments to persons........ 45.6 66.3 7.6 10.5 5.1 6.5 4.2 2.9 Old-age, survivors, disability, and health insurance benefits... 28.5 34.5 6.0 4.9 4.0 5.5 -0.2 1.9 Government unemployment insurance benefits.............. -10.3 -2.1 -0.1 0.4 -0.3 -0.3 0.1 -0.1 Other............................. 27.4 33.9 1.9 5.1 1.4 1.3 4.3 1.1 Less: Personal contributions for social insurance.................. 18.5 16.4 1.3 -0.8 2.6 1.2 1.3 1.4 Less: Personal tax and nontax payments............................ 41.5 62.9 3.3 4.9 12.0 8.6 59.3 -44.8 Equals: Disposable personal income.... 229.5 288.6 35.9 -1.8 33.3 17.4 -29.0 72.8 Less: Personal outlays................ 253.6 240.2 46.2 -17.5 58.8 23.3 14.3 43.4 Personal consumption expenditures... 244.6 225.6 44.6 -18.2 57.3 22.7 13.4 42.8 Interest paid by persons............ 8.3 14.5 1.5 1.5 1.4 0.7 0.9 0.6 Personal transfer payments to the rest of the world (net)........... 0.7 0.0 0.0 -0.7 0.0 0.0 0.0 0.0 Equals: Personal saving............... -24.0 48.4 -10.3 15.7 -25.5 -5.9 -43.4 29.5 Addenda: Disposable personal income, chained (1992) dollars.......... 109.4 159.1 26.3 -12.1 22.6 1.8 -42.2 59.4 -------------------------------------------------------------------------------------------------------------------- ----------------------------------------- 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 --------------------------------------------------------- 1994 1995 Dec. 95 Jan. 96r Feb. 96r Mar. 96r Apr. 96r May 96p ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,698.7 4,924.3 5,035.1 5,016.9 5,074.2 5,096.9 5,110.3 5,153.1 Durable goods....................... 580.9 606.4 629.7 603.8 637.6 634.2 624.8 649.4 Nondurable goods.................... 1,429.7 1,486.1 1,502.2 1,508.8 1,527.0 1,532.0 1,545.5 1,544.5 Services............................ 2,688.1 2,831.8 2,903.2 2,904.4 2,909.6 2,930.8 2,940.0 2,959.2 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 4,471.1 4,578.5 4,648.7 4,622.2 4,667.6 4,675.2 4,673.0 4,705.4 Durable goods....................... 562.0 580.8 606.7 581.7 614.1 610.9 605.4 630.9 Nondurable goods.................... 1,390.5 1,422.5 1,429.8 1,426.9 1,443.8 1,440.2 1,444.3 1,440.1 Services............................ 2,519.4 2,576.1 2,613.0 2,614.0 2,611.0 2,625.2 2,624.3 2,635.5 -------------------------------------------------------------------------------- Implicit price deflators (Index numbers, 1992 = 100) -------------------------------------------------------------------------------- Personal consumption expenditures..... 105.1 107.6 108.3 108.5 108.7 109.0 109.4 109.5 Durable goods....................... 103.4 104.4 103.8 103.8 103.8 103.8 103.2 102.9 Nondurable goods.................... 102.8 104.5 105.1 105.7 105.8 106.4 107.0 107.2 Services............................ 106.7 109.9 111.1 111.1 111.4 111.6 112.0 112.3 ------------------------------------------------------------------------------------------------------------------------- Change from preceding period ------------------------------------------------------------------------------------------------------------------------- Billions of current dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 244.6 225.6 44.6 -18.2 57.3 22.7 13.4 42.8 Durable goods....................... 50.2 25.5 22.1 -25.9 33.8 -3.4 -9.4 24.6 Nondurable goods.................... 60.8 56.4 7.6 6.6 18.2 5.0 13.5 -1.0 Services............................ 133.5 143.7 14.9 1.2 5.2 21.2 9.2 19.2 -------------------------------------------------------------------------------- Billions of chained (1992) dollars -------------------------------------------------------------------------------- Personal consumption expenditures..... 131.4 107.4 34.9 -26.5 45.4 7.6 -2.2 32.4 Durable goods....................... 37.9 18.8 20.8 -25.0 32.4 -3.2 -5.5 25.5 Nondurable goods.................... 41.6 32.0 4.5 -2.9 16.9 -3.6 4.1 -4.2 Services............................ 52.6 56.7 9.7 1.0 -3.0 14.2 -0.9 11.2 __________________________________________________________________________________________________________________________ Table 5. -- Percent Change From Preceding Period in Selected Series -------------------------------------------------------------------------------------------------------------------------- 1994 1995 Dec. 95 Jan. 96 Feb. 96 Mar. 96 Apr. 96 May 96 -------------------------------------------------------------------------------------------------------------------------- Based on current dollars --------------------------------------------------------------------------------- Personal income....................... 4.9 6.1 0.6 0.1 0.7 0.4 0.5 0.4 Disposable personal income............ 4.8 5.8 0.7 0.0 0.6 0.3 -0.5 1.3 Personal consumption expenditures..... 5.5 4.8 0.9 -0.4 1.1 0.4 0.3 0.8 Durable goods....................... 9.5 4.4 3.6 -4.1 5.6 -0.5 -1.5 3.9 Nondurable goods.................... 4.4 3.9 0.5 0.4 1.2 0.3 0.9 -0.1 Services............................ 5.2 5.3 0.5 0.0 0.2 0.7 0.3 0.7 --------------------------------------------------------------------------------- Based on chained (1992) dollars --------------------------------------------------------------------------------- Disposable personal income............ 2.3 3.3 0.5 -0.2 0.5 0.0 -0.8 1.2 Personal comsumption expenditures..... 3.0 2.4 0.8 -0.6 1.0 0.2 0.0 0.7 Durable goods....................... 7.2 3.4 3.6 -4.1 5.6 -0.5 -0.9 4.2 Nondurable goods.................... 3.1 2.3 0.3 -0.2 1.2 -0.3 0.3 -0.3 Services............................ 2.1 2.3 0.4 0.0 -0.1 0.5 0.0 0.4 -------------------------------------------------------------------------------------------------------------------------- ---------------------------------------- p Preliminary. r Revised. Source: U.S. Department of Commerce, Bureau of Economic Analysis.