EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, Monday, August 29, 2016
BEA 16—45


* 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.


Technical: James Rankin (301) 278-9087 (Personal Income) piniwd@bea.gov
  Kyle Brown (301) 278-9086 (PCE) pce@bea.gov
Media: Jeannine Aversa (301) 278-9003   jeannine.aversa@bea.gov
PERSONAL INCOME AND OUTLAYS, JULY 2016
Personal income increased $71.6 billion (0.4 percent) in July according to estimates released today
by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $60.1 billion (0.4 percent)
and personal consumption expenditures (PCE) increased $42.0 billion (0.3 percent).

Real DPI increased 0.4 percent in July and Real PCE increased 0.3 percent. The PCE price index was
unchanged from June. Excluding food and energy, the PCE price index increased 0.1 percent in July.

                                                                2016
                                                Mar     Apr     May     Jun     Jul
                                                Percent change from preceding month
Personal income:
 Current dollars                                0.3     0.6     0.3     0.3     0.4
Disposable personal income:
 Current dollars                                0.3     0.6     0.3     0.3     0.4
 Chained (2009) dollars                         0.2     0.2     0.1     0.2     0.4
Personal consumption expenditures (PCE):
 Current dollars                                0.0     1.1     0.3     0.5     0.3
 Chained (2009) dollars                         0.0     0.7     0.2     0.4     0.3
Price indexes:
 PCE                                            0.1     0.3     0.2     0.1     0.0
 PCE, excluding food and energy                 0.1     0.2     0.2     0.1     0.1

                                               Percent change from month one year ago
 PCE                                            0.8     1.0     1.0     0.9     0.8
 PCE, excluding food and energy                 1.6     1.6     1.6     1.6     1.6

The increase in personal income in July primarily reflected increases in wages and salaries and personal
current transfer receipts.

The increase in real PCE in July reflected increases in spending for new motor vehicles and for services
that was partially offset by a decrease in spending for nondurable goods.

Personal outlays increased $41.6 billion in July. Personal saving was $794.7 billion in July and the personal
saving rate, personal saving as a percentage of disposable personal income, was 5.7 percent.

                                Revisions

Estimates have been revised for January through June. The percent change from the preceding month for
current-dollar personal income, and for current-dollar and chained (2009) dollar DPI and PCE -- revised
and as published in last month's release -- are shown below.

                                                        Change from preceding month
                                                  May                                       June
                                Previous    Revised    Previous    Revised    Previous    Revised    Previous    Revised
                               (Billions of dollars)        (Percent)        (Billions of dollars)        (Percent)
Personal income:
 Current dollars                    27.0       47.4         0.2        0.3        29.3       53.9         0.2        0.3
Disposable personal income:
 Current dollars                    25.7       43.6         0.2        0.3        24.6       46.3         0.2        0.3
 Chained (2009) dollars              1.4       18.0         0.0        0.1         9.4       28.0         0.1        0.2
Personal consumption expenditures:
 Current dollar                     46.1       43.3         0.4        0.3        53.0       69.3         0.4        0.5
 Chained (2009) dollars             21.8       19.7         0.2        0.2        36.3       50.0         0.3        0.4

BOX._______________
                QCEW Data Included in the First Quarter of 2016

This news release presents revised estimates of wages and salaries, personal taxes, and contributions for
government social insurance for January through March 2016 (first quarter). These estimates reflect the
full incorporation of the most recently available first-quarter wage and salary tabulations from the
quarterly census of employment and wages (QCEW) from the Bureau of Labor Statistics.
___________________

                                Next release:  September 30, 2016 at 8:30 A.M. EDT
                                    Personal Income and Outlays:  August 2016

                                       Additional Information

Resources

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•	Historical time series for these estimates can be accessed in BEA’s Interactive Data Application.
•	Access BEA data by registering for BEA’s Data Application Programming Interface (API).
•	For more on BEA’s statistics, see our monthly online journal, the Survey of Current Business.
•	BEA's news release scheduleNIPA Handbook:  Concepts and Methods of the U.S. National Income and Product Accounts


Definitions

Personal income is the income received by, or on behalf of, all persons from all sources:  from
participation as laborers in production, from owning a home or business, from the ownership of
financial assets, and from government and business in the form of transfers. It includes income from
domestic sources as well as the rest of world. It does not include realized or unrealized capital gains or
losses.

Disposable personal income is the income available to persons for spending or saving. It is equal to
personal income less personal current taxes.

Personal consumption expenditures (PCE) is the value of the goods and services purchased by, or on the
behalf of, “persons” who reside in the United States.

Personal outlays is the sum of PCE, personal interest payments, and personal current transfer payments.

Personal saving is personal income less personal outlays and personal current taxes.

The personal saving rate is personal saving as a percentage of disposable personal income. (For a
comparison of personal saving in BEA's national income and product accounts with personal saving in
the Federal Reserve Board's financial accounts of the United States, go to
www.bea.gov/national/nipaweb/nipa-frb.asp.

Current-dollar estimates are valued in the prices of the period when the transactions occurred—that is,
at “market value.” Also referred to as “nominal estimates” or as “current-price estimates.”

Real values are inflation-adjusted estimates—that is, estimates that exclude the effects of price changes.

For more definitions, see the Glossary: National Income and Product Accounts.


Statistical conventions

Annual rates. Monthly and quarterly values are expressed at seasonally-adjusted annual rates (SAAR).
Dollar changes are calculated as the difference between these SAAR values. For detail, see the FAQ
“Why does BEA publish estimates at annual rates?”

Month-to-month percent changes are calculated from unrounded data and are not annualized.

Quarter-to-quarter percent changes are calculated from unrounded data and are displayed at annual
rates. For detail, see the FAQ “How is average annual growth calculated?”

Quantities and prices. Quantities, or “real” volume measures, and prices are expressed as index
numbers with a specified reference year equal to 100 (currently 2009). Quantity and price indexes are
calculated using a Fisher-chained weighted formula that incorporates weights from two adjacent
periods (quarters for quarterly data and annuals for annual data). “Real” dollar series are calculated by
multiplying the published quantity index by the current dollar value in the reference year (2009) and
then dividing by 100. Percent changes calculated from real quantity indexes and chained-dollar levels
are conceptually the same; any differences are due to rounding.

Chained-dollar values are not additive because the relative weights for a given period differ from those
of the reference year.


List of Personal Income and Outlays News Release Tables

Table 1.	Personal Income and Its Disposition (Months)
Table 2.	Personal Income and Its Disposition (Years and Quarters)
Table 3.	Personal Income and Its Disposition, Change From Preceding Period (Months)
Table 4.	Personal Income and Its Disposition, Change From Preceding Period (Years and Quarters)
Table 5.	Personal Income and Its Disposition, Percent Change From Preceding Period (Months)
Table 6.	Personal Income and Its Disposition, Percent Change From Preceding Period (Years and
                Quarters)
Table 7.	Real Personal Consumption Expenditures by Major Type of Product (Months)
Table 8.	Real Personal Consumption Expenditures by Major Type of Product (Years and Quarters)
Table 9.	Price Indexes for Personal Consumption Expenditures: Level and Percent Change From
                Preceding Period (Months)
Table 10.	Real Disposable Personal Income and Real Personal Consumption Expenditures: Percent
                Change From Month One Year Ago
Table 11.	Price Indexes for Personal Consumption Expenditures: Percent Change From Month One
                Year Ago