EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, Friday, June 29, 2018
BEA 18—32

* See the navigation bar at the right side of the news release text for links to data tables,
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Technical: James Rankin (301) 278-9087 (Personal Income) piniwd@bea.gov
  Harvey Davis (301) 278-9086 (PCE) pce@bea.gov
Media: Jeannine Aversa (301) 278-9003   Jeannine.Aversa@bea.gov
Personal income increased $60.0 billion (0.4 percent) in May according to estimates released today by
the Bureau of Economic Analysis. Disposable personal income (DPI) increased $63.2 billion (0.4 percent)
and personal consumption expenditures (PCE) increased $27.8 billion (0.2 percent).

Real DPI increased 0.2 percent in May and Real PCE decreased less than 0.1 percent. The PCE price index
increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.2 percent.

                                                Jan.     Feb.     Mar.     Apr.     May
                                                 Percent change from preceding month
Personal income:
 Current dollars                                0.4      0.4      0.3      0.2      0.4
Disposable personal income:
 Current dollars                                0.8      0.3      0.3      0.3      0.4
 Chained (2009) dollars                         0.5      0.2      0.3      0.1      0.2
Personal consumption expenditures (PCE):
 Current dollars                                0.1     -0.1      0.6      0.5      0.2
 Chained (2009) dollars                        -0.2     -0.2      0.6      0.3      0.0
Price indexes:
 PCE                                            0.3      0.1      0.0      0.2      0.2
 PCE, excluding food and energy                 0.2      0.2      0.2      0.2      0.2

Price indexes:                                  Percent change from month one year ago
 PCE                                            1.6      1.7      2.0      2.0      2.3
 PCE, excluding food and energy                 1.5      1.5      1.8      1.8      2.0

The increase in personal income in May primarily reflected increases in wages and salaries, personal dividend
income, and nonfarm proprietors’ income (table 3).

The $1.4 billion decrease in real PCE in May reflected a decrease in spending for services that was partially
offset by an increase in spending for goods (table 7). Within goods, recreational goods and vehicles was the
leading contributor to the increase. Within services, the largest contributor to the decrease was spending for
household utilities. Detailed information on monthly real PCE spending can be found in Table 2.3.6U.

Personal outlays increased $29.2 billion in May (table 3). Personal saving was $482.0 billion in May and the
personal saving rate, personal saving as a percentage of disposable personal income, was 3.2 percent (table 1).

                                Updates to Personal Income and Outlays

Estimates have been revised for January through April. 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
                                                 March                                     April
                                Previous   Revised   Previous   Revised   Previous   Revised   Previous   Revised
                               (Billions of dollars)      (Percent)      (Billions of dollars)      (Percent)
Personal income:
 Current dollars                    40.7      51.1        0.2       0.3       49.5      41.1        0.3       0.2
Disposable personal income:
 Current dollars                    34.0      43.9        0.2       0.3       60.9      48.9        0.4       0.3
 Chained (2009) dollars             25.3      33.7        0.2       0.3       24.5      12.1        0.2       0.1
Personal consumption expenditures:
 Current dollars                    73.9      87.3        0.5       0.6       79.8      68.1        0.6       0.5
 Chained (2009) dollars             60.5      72.1        0.5       0.6       42.8      30.9        0.4       0.3

                                Upcoming Annual Update of the National Income and Product Accounts

BEA will release the results of the 15th comprehensive (or benchmark) update of the national income and product accounts
(NIPAs) in conjunction with the second quarter 2018 "advance" estimate on July 27, 2018.  For more information, see the
Technical Note. Details on the planned statistical, definitional, and presentational changes are available in the April
Survey of Current Business article "Preview of the 2018 Comprehensive Update of the National Income and Product Accounts."
An article in the September Survey will describe the estimates in detail. Revised NIPA table stubs are available on the BEA Web site.

                                Next release:  July 31, 2018 at 8:30 A.M. EDT
                                   Personal Income and Outlays: June 2018

                                      Additional Information


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        subscription service, or following BEA on Twitter @BEA_News.
•	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


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

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.

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.