EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, MARCH 29, 2013
BEA 13-14


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James Rankin: (202) 606-5301 (Personal Income) piniwd@bea.gov
Harvey Davis: (202) 606-5302 (Personal Consumption Expenditures) pce@bea.gov
PERSONAL INCOME AND OUTLAYS, FEBRUARY 2013
Personal income increased $143.2 billion, or 1.1 percent, and disposable personal income (DPI)
increased $127.8 billion, or 1.1 percent, in February, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $77.2 billion, or 0.7 percent.  In January,
personal income decreased $513.5 billion, or 3.7 percent, DPI decreased $498.3 billion, or 4.0 percent,
and PCE increased $40.8 billion, or 0.4 percent, based on revised estimates.

Real disposable income increased 0.7 percent in February, in contrast to a decrease of 4.0 percent
in January.  Real PCE increased 0.3 percent in February, the same increase as in January.

                                        2012                                            2013
                                        Oct.            Nov.            Dec.            Jan.            Feb.
                                                       (Percent change from preceding month)
Personal income, current dollars        0.0             1.1             2.6            -3.7             1.1
Disposable personal income:
 Current dollars                        0.0             1.0             2.7            -4.0             1.1
 Chained (2005) dollars                -0.2             1.2             2.7            -4.0             0.7
Personal consumption expenditures:
 Current dollars                        0.0             0.3             0.2             0.4             0.7
 Chained (2005) dollars                -0.2             0.5             0.2             0.3             0.3

FOOTNOTE.________
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 BEA’s Web site at www.bea.gov/newsreleases/rels.htm.
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The January change in disposable personal income (DPI) mainly reflected the effect of special factors, such
as the expiration of the “payroll tax holiday” and the acceleration of bonuses and personal dividends to
December in anticipation of changes in individual tax rates.  Excluding these special factors and others,
which are discussed more fully below, DPI increased $46.8 billion in February, or 0.4 percent, after
increasing $15.8 billion, or 0.1 percent, in January.

                                Wages and salaries

Private wage and salary disbursements increased $42.4 billion in February, in contrast to a decrease
of $42.7 billion in January.  The February and January levels of private wages and salaries were reduced
by $15.0 billion (at an annual rate), reflecting the impact of accelerated bonuses in anticipation of
changes to individual income tax rates.  Goods-producing industries' payrolls increased $13.5 billion,
in contrast to a decrease of $3.9 billion; manufacturing payrolls increased $8.5 billion, in contrast
to a decrease of $3.5 billion.  Services-producing industries' payrolls increased $28.9 billion, in
contrast to a decrease of $38.8 billion.

Government wage and salary disbursements increased $0.7 billion in February, the same increase as in January.
Pay raises for military personnel added $1.9 billion to government payrolls in January.

                                Other personal income

Supplements to wages and salaries increased $6.2 billion in February, compared with an increase of $6.0 billion in January.

Proprietors' income increased $12.6 billion in February, compared with an increase of $9.5 billion in January.
Farm proprietors' income increased $4.8 billion, compared with an increase of $4.9 billion.  Nonfarm proprietors'
income increased $7.7 billion, compared with an increase of $4.6 billion.

Rental income of persons increased $9.9 billion in February, compared with an increase of $9.4 billion in January.
Personal income receipts on assets (personal interest income plus personal dividend income) increased $68.9 billion,
in contrast to a decrease of $375.2 billion.  The level of personal dividend income was reduced $81.0 billion in
January (at an annual rate), after a boost of $291.0 billion in December, reflecting accelerated and special
dividend distributions paid in December; these adjustments reflected the impact of expected changes to individual
income tax rates.  For additional information, see the FAQ on “How would special and accelerated dividends affect
the national income and product accounts in the fourth quarter 2012?” at www.bea.gov.

Personal current transfer receipts increased $9.0 billion in February, compared with an increase of $5.7 billion in January.
The January estimates of current transfer receipts reflected 1.7-percent cost-of-living adjustments to social
security benefits and to several other federal transfer payment programs; together, these changes added $15.2 billion
to the January increase.

Contributions for government social insurance -- a subtraction in calculating personal income --  increased $6.4 billion
in February, compared with an increase of $126.8 billion in January.  The January estimate reflected increases
in both employer and employee contributions for government social insurance.  The January estimate of employee
contributions for government social insurance reflected the expiration of the “payroll tax holiday,” that increased
the social security contribution rate for employees and self-employed workers by 2.0 percentage points, or $114.1 billion
at an annual rate.  For additional information, see FAQ on “How did the expiration of the payroll tax holiday
affect personal income for January 2013?” at www.bea.gov.  The January estimate of employee contributions for
government social insurance also reflected an increase in the monthly premiums paid by participants in the
supplementary medical insurance program, in the hospital insurance provisions of the Patient Protection and
Affordable Care Act, and in the social security taxable wage base; together, these changes added $12.9 billion
to January.  Employer contributions were boosted $5.9 billion in January, which reflected increases in the social
security taxable wage base (from $110,100 to $113,700), in the tax rates paid by employers to state unemployment
insurance, and in employer contributions for the federal unemployment tax and for pension guaranty.  The total
contribution of special factors to the January change in contributions for government social insurance was $132.9 billion.

Personal current taxes and disposable personal income

Personal current taxes increased $15.4 billion in February, in contrast to a decrease of $15.2 billion in January.
Payments of final settlements and back taxes less refunds in federal net nonwithheld income taxes reduced the January
change by $3.4 billion.  Indexation provisions of current tax law reduced federal withheld income taxes by $1.4 billion
in January.   Disposable personal income (DPI) -- personal income less personal current taxes -- increased $127.8 billion,
or 1.1 percent, in February, in contrast to a decrease of $498.3 billion, or 4.0 percent in January.

                                Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $79.4 billion
in February, compared with an increase of $42.8 billion in January.  PCE increased $77.2 billion, compared with an
increase of $40.8 billion.

Personal saving -- DPI less personal outlays -- was $310.9 billion in February, compared with $262.5 billion in January.
The personal saving rate -- personal saving as a percentage of disposable personal income -- was 2.6 percent in February,
compared with 2.2 percent in January. For a comparison of personal saving in BEA's national income and product accounts
with personal saving in the Federal Reserve Board’s flow of funds accounts and data on changes in net worth, go to
http://www.bea.gov/national/nipaweb/Nipa-Frb.asp.

                                Real DPI, real PCE and price index

Real DPI -- DPI adjusted to remove price changes -- increased 0.7 percent in February, in contrast to a decrease of 4.0 percent
in January.

Real PCE -- PCE adjusted to remove price changes -- increased 0.3 percent in February, the same increase as in January.
Purchases of durable goods increased 0.1 percent in February, compared with an increase of 0.4 percent in January.
Purchases of nondurable goods increased 0.5 percent in February, the same increase as in January. Purchases of services
increased 0.3 percent in February, compared with an increase of 0.2 percent in January.

PCE price index -- The price index for PCE increased 0.4 percent in February, compare with an increase of less than 0.1 percent
in January. The PCE price index, excluding food and energy, increased 0.1 percent, compared with an increase of 0.2 percent.

                                2012 Personal Income and Outlays

Personal income increased 3.6 percent in 2012 (that is, from the 2011 annual level to the 2012 annual level), compared with an
increase of 5.1 percent in 2011.  DPI increased 3.3 percent, compared with an increase of 3.8 percent.  PCE increased 3.6 percent,
compared with an increase of 5.0 percent.

Real DPI increased 1.5 percent in 2012, compared with an increase of 1.3 percent in 2011.  Real PCE increased 1.9 percent,
compared with an increase of 2.5 percent.

                                Revisions

Estimates have been revised for October 2012 through January 2013.  Changes in personal income, current-dollar and
chained (2005) dollar DPI, and current-dollar and chained (2005) dollar PCE for December and January -- revised and
as published in last month's release -- are shown below.

                                                                Change from preceding month
                                        December                                  January
                                        Previous   Revised   Previous   Revised   Previous   Revised   Previous   Revised
                                       (Billions of dollars)      (Percent)      (Billions of dollars)      (Percent)
Personal Income:
 Current dollars                           353.4     357.9        2.6       2.6     -505.5    -513.5       -3.6      -3.7
Disposable personal income:
 Current dollars                           325.7     329.3        2.7       2.7     -491.4    -498.3       -4.0      -4.0
 Chained (2005) dollars                    281.7     282.8        2.7       2.7     -424.6    -431.8       -4.0      -4.0
Personal consumption expenditures:
 Current dollars                            14.8      18.8        0.1       0.2       18.2      40.8        0.2       0.4
 Chained (2005) dollars                     14.2      16.0        0.1       0.2       13.6      31.6        0.1       0.3

BEA’s 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 - April 29, 2013 at 8:30 A.M. EDT for Personal Income and Outlays for March
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