U.S. August Personal Income and Spending (Text)

Following is the text of the U.S. personal income report for August from the Commerce Department.

Personal income increased $15.0 billion, or 0.1 percent, and disposable personal income (DPI) increased $12.5 billion, or 0.1 percent, in August, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $57.2 billion, or 0.5 percent. In July, personal income increased $18.5 billion, or 0.1 percent, DPI increased $15.4 billion, or 0.1 percent, and PCE increased $45.4 billion, or 0.4 percent, based on revised estimates.

Real disposable income decreased 0.3 percent in August, in contrast to an increase of 0.1 percent in July. Real PCE increased 0.1 percent, compared with an increase of 0.4 percent.

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.

Wages and salaries

Private wage and salary disbursements increased $4.7 billion in August, compared with an increase of $9.3 billion in July. Goods-producing industries’ payrolls decreased $6.4 billion, in contrast to an increase of $3.2 billion; manufacturing payrolls decreased $5.2 billion, in contrast to an increase of $3.4 billion. Services-producing industries’ payrolls increased $11.2 billion, compared with an increase of $6.0 billion. Government wage and salary disbursements increased $0.7 billion, in contrast to a decrease of $0.7 billion.

Other personal income

Supplements to wages and salaries increased $3.3 billion in August, compared with an increase of $3.6 billion in July.

Proprietors’ income increased $7.3 billion in August, compared with an increase of $6.5 billion in July. Farm proprietors’ income increased $4.4 billion in August, the same increase as in July. Nonfarm proprietors’ income increased $2.9 billion in August, compared with an increase of $2.1 billion in July.

Rental income of persons increased $5.3 billion in August, compared with an increase of $5.1 billion in July. Personal income receipts on assets (personal interest income plus personal dividend income) decreased $4.3 billion, compared with a decrease of $13.1 billion.

Personal current transfer receipts decreased $1.4 billion in August, in contrast to an increase of $9.5 billion in July. Within current transfer receipts, government social benefits to persons for Medicare increased $2.3 billion, compared with an increase of $6.9 billion.

Contributions for government social insurance -- a subtraction in calculating personal income -- increased $0.7 billion in August, compared with an increase of $1.4 billion in July.

Personal current taxes and disposable personal income

Personal current taxes increased $2.4 billion in August, compared with an increase of $3.1 billion in July. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $12.5 billion, or 0.1 percent, in August, compared with an increase of $15.4 billion, or 0.1 percent, in July.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $60.0 billion in August, compared with an increase of $48.2 billion in July. PCE increased $57.2 billion, compared with an increase of $45.4 billion.

Personal saving -- DPI less personal outlays -- was $444.8 billion in August, compared with $492.2 billion in July. Personal saving as a percentage of disposable personal income was 3.7 percent in August, compared with 4.1 percent in July. 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 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, in contrast to an increase of 0.1 percent in July.

Real PCE -- PCE adjusted to remove price changes -- increased 0.1 percent in August, compared with an increase of 0.4 percent in July. Purchases of durable goods increased 0.5 percent in August, the same increase as in July. Purchases of motor vehicles and parts accounted for most of the increase in August. Purchases of nondurable goods increased 0.3 percent in August, compared with an increase of 0.6 percent in July. Purchases of services decreased 0.1 percent, in contrast to an increase of 0.3 percent.

The price index for PCE increased 0.4 percent in August, compared with an increase of less than 0.1 percent in July. The PCE price index, excluding food and energy, increased 0.1 percent in August, the same increase as in July.

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.

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.

Next release -- October 29, 2012 at 8:30 A.M. EDT for Personal Income and Outlays for September

SOURCE: U.S. Commerce Department. http://www.bea.gov

To contact the reporter on this story: Chris Middleton in Washington at cmiddleton2@bloomberg.net

To contact the editor responsible for this story: Marco Babic at mbabic@bloomberg.net

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