Home > News Release: Personal Income and Outlays, August 2011
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, SEPTEMBER 30, 2011
BEA 11-50  


James Rankin: (202) 606-5301 (Personal Income) piniwd@bea.gov

Kyle Brown: (202) 606-5302 (Personal Consumption Expenditures) pce@bea.gov

* See the navigation bar at the right side of the news release text for links to data tables, contact personnel and their telephone numbers, and supplementary materials.

PERSONAL INCOME AND OUTLAYS: AUGUST 2011

Personal income decreased $7.3 billion, or 0.1 percent, and disposable personal income (DPI)
decreased $5.0 billion, or less than 0.1 percent, inAugust, according to the Bureau of Economic
Analysis.  Personal consumption expenditures (PCE) increased $22.7 billion, or 0.2 percent.  In July,
personal income increased $17.1 billion, or 0.1 percent, DPI increased $14.4 billion, or 0.1 percent,
and PCE increased $76.6 billion, or 0.7 percent, based on revised estimates.

Real disposable income decreased 0.3 percent in August, compared with a decrease of 0.2
percent in July.  Real PCE decreased less than 0.1 percent, in contrast to an increase of 0.4 percent.

                                        2011
                                        Apr.            May             June            July            Aug.
                                                       (Percent change from preceding month)
Personal income, current dollars        0.4             0.3             0.2             0.1            -0.1
Disposable personal income:
 Current dollars                        0.3             0.2             0.1             0.1             0.0
 Chained (2005) dollars                 0.0             0.0             0.3            -0.2            -0.3
Personal consumption expenditures:
 Current dollars                        0.3             0.2            -0.2             0.7             0.2
 Chained (2005) dollars                -0.1             0.0            -0.1             0.4             0.0

                                Wages and salaries

Private wage and salary disbursements decreased $12.2 billion in August, in contrast to an increase
of $23.8 billion in July.  Goods-producing industries' payrolls decreased $1.3 billion, in contrast to an
increase of $6.3 billion; manufacturing payrolls decreased $2.9 billion, in contrast to an increase of $5.8 billion.
Services-producing industries' payrolls decreased $10.9 billion, in contrast to an increase of $17.5 billion.
Government wage and salary disbursements increased $0.4 billion, in contrast to a decrease of $1.8 billion.

                                Other personal income

Supplements to wages and salaries increased $1.1 billion in August, compared with an increase of $3.3 billion in July.

Proprietors' income increased $6.5 billion in August, compared with an increase of $3.1 billion in July.  Farm
proprietors' income increased $0.7 billion, compared with an increase of $0.8 billion.  Nonfarm proprietors'
income increased $5.7 billion, compared with an increase of $2.5 billion.

Rental income of persons increased $8.3 billion in August, compared with an increase of $8.1 billion in July.
Personal income receipts on assets (personal interest income plus personal dividend income) decreased $5.7 billion,
compared with a decrease of $5.8 billion.

Personal current transfer receipts decreased $7.1 billion in August, compared with a decrease of $10.7 billion
in July.  Government social benefits to persons for Medicaid decreased $10.5 billion, compared with a decrease of $13.6 billion.

Contributions for government social insurance -- a subtraction in calculating personal income --  decreased $1.3 billion
in August, in contrast to an increase of $3.0 billion in July.

                                 Personal current taxes and disposable personal income

Personal current taxes decreased $2.3 billion in August, in contrast to an increase of $2.7 billion in July.
Disposable personal income (DPI) -- personal income less personal current taxes -- decreased $5.0 billion, or
less than 0.1 percent, in August, in contrast to an increase of $14.4 billion, or 0.1 percent in July.

                                Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $26.3 billion in August,
compared with an increase of $80.2 billion in July.  PCE increased $22.7 billion, compared with an increase of $76.6 billion.

Personal saving -- DPI less personal outlays -- was $519.3 billion in August, compared with $550.5 billion in July.
Personal saving as a percentage of disposable personal income was 4.5 percent in August, compared with 4.7 percent in July.
For a comparison of personal saving in BEAs national income and product accounts with personal saving in the Federal
Reserve Boards flow of funds accounts and data on changes in net worth, go to www.bea.gov/national/nipaweb/Nipa-Frb.asp.

                                Real DPI, real PCE and price index

Real DPI -- DPI adjusted to remove price changes -- decreased 0.3 percent in August, compared with a decrease of 0.2 percent in July.

Real PCE -- PCE adjusted to remove price changes -- decreased less than 0.1 percent in    August, in contrast to an increase
of 0.4 percent in July.  Purchases of durable goods increased 0.1 percent, compared with an increase of 2.2 percent.
Purchases of nondurable goods decreased 0.4 percent, compared with a decrease of 0.5 percent.  Purchases of services increased
0.1 percent, compared with an increase of 0.4 percent.

PCE price index -- The price index for PCE increased 0.2 percent in August,compared with an increase of 0.4 percent in July.
The PCE price index, excluding food and energy, increased 0.1 percent, compared with an increase of 0.2 percent.

                                Revisions

Estimates have been revised for April through July.  Changes in personal income, current-dollar
and chained (2005) dollar DPI, and current-dollar and chained (2005) dollar PCE for June and July -- revised and as
published in last month's release -- are shown below.

                                                                Change from preceding month
                                        June                                      July
                                        Previous   Revised   Previous   Revised   Previous   Revised   Previous   Revised
                                       (Billions of dollars)      (Percent)      (Billions of dollars)      (Percent)
Personal Income:
 Current dollars                        27.7       21.3      0.2        0.2       42.4       17.1      0.3        0.1
Disposable personal income:
 Current dollars                        22.6       15.4      0.2        0.1       32.5       14.4      0.3        0.1
 Chained (2005) dollars                 32.9       26.4      0.3        0.3       -9.3      -24.7     -0.1       -0.2
Personal consumption expenditures:
 Current dollars                       -14.3      -21.7     -0.1       -0.2       88.4       76.6      0.8        0.7
 Chained (2005) dollars                 -0.6       -7.3      0.0       -0.1       42.9       32.8      0.5        0.4

BEAs national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases
are available without charge on BEA's Web site at www.bea.gov.  By visiting the site, you can also subscribe to receive free
e-mail summaries of BEA releases and announcements.

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Next release - October 28, 2011 at 8:30 A.M. EDT for Personal Income and Outlays for September.
________________________
NOTE. -- Monthly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified.
Month-to-month dollar changes are differences between these published estimates.  Month-to-month percent changes are
calculated from unrounded data and are not annualized.  Real estimates are in chained (2005) dollars.

This news release is available on BEAs Web site at www.bea.gov/newsreleases/rels.htm.