Personal Income and Outlays, December 2014

Historical release narrative reproduced from the official public-domain U.S. Bureau of Economic Analysis source. Statistical tables, charts, standard technical appendices and administrative material are omitted; formatting is adapted for reading. Figures retain the release's original vintage and may have been revised. Consult the linked source for the complete release and current data.

Personal income increased $41.3 billion, or 0.3 percent, and disposable personal income (DPI) increased $35.8 billion, or 0.3 percent, in December, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) decreased $40.0 billion, or 0.3 percent. In November, personal income increased $47.2 billion, or 0.3 percent, DPI increased $34.2 billion, or 0.3 percent, and PCE increased $58.8 billion, or 0.5 percent, based on revised estimates.

Real DPI increased 0.5 percent in December, compared with an increase of 0.4 percent in November. Real PCE decreased 0.1 percent, in contrast to an increase of 0.7 percent. The price index for PCE decreased 0.2 percent in December, the same decrease as in November.

Compensation

Wages and salaries increased $6.9 billion in December, compared with an increase of $42.2 billion in November. Private wages and salaries increased $4.9 billion, compared with an increase of $40.6 billion. Government wages and salaries increased $1.9 billion, compared with an increase of $1.7 billion.

Supplements to wages and salaries increased $3.3 billion in December, compared with an increase of $5.6 billion in November.

Other personal income

Proprietors' income increased $12.8 billion in December, in contrast to a decrease of $3.3 billion in November. Farm proprietors' income increased $4.4 billion, the same as in November. Nonfarm proprietors' income increased $8.4 billion in December, in contrast to a decrease of $7.7 billion in November.

Rental income of persons increased $5.0 billion in December, compared with an increase of $2.5 billion in November. Personal income receipts on assets (personal interest income plus personal dividend income) increased $1.3 billion, compared with an increase of $3.1 billion.

Personal current transfer receipts increased $12.7 billion in December, compared with an increase of $2.4 billion in November. Within personal current transfer receipts in December, government social benefit payments to persons included retroactive social security benefit payments of $7.8 billion (at an annual rate), resulting from a recalculation of the earnings base underlying the benefits of recent retirees.

Contributions for government social insurance -- a subtraction in calculating personal income -- increased $0.6 billion in December, compared with an increase of $5.5 billion in November.

Personal current taxes and disposable personal income

Personal current taxes increased $5.4 billion in December, compared with an increase of $13.1 billion in November. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $35.8 billion, or 0.3 percent, in December, compared with an increase of $34.2 billion, or 0.3 percent, in November.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- decreased $39.2 billion in December, in contrast to an increase of $59.7 billion in November. PCE decreased $40.0 billion, in contrast to an increase of $58.8 billion.

Personal saving -- DPI less personal outlays -- was $643.2 billion in December, compared with $568.2 billion in November. The personal saving rate -- personal saving as a percentage of disposable personal income -- was 4.9 percent in December, compared with 4.3 percent in November. 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 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 -- increased 0.5 percent in December, compared with an increase of 0.4 percent in November.

Real PCE -- PCE adjusted to remove price changes -- decreased 0.1 percent in December, in contrast to an increase of 0.7 percent in November. Purchases of durable goods decreased 0.7 percent, in contrast to an increase of 2.5 percent. Purchases of motor vehicles and parts accounted for most of the decrease in December and most of the increase in November. Purchases of nondurable goods decreased 0.1 percent in December, in contrast to an increase of 0.7 percent in November. Purchases of services increased less than 0.1 percent, compared with an increase of 0.3 percent.

The price index for PCE decreased 0.2 percent in December, the same decrease as in November. The PCE price index, excluding food and energy, increased less than 0.1percent in December; the price index increased less than 0.1 percent in November.

The December price index for PCE increased 0.7 percent from December a year ago. The December PCE price index, excluding food and energy, increased 1.3 percent from December a year ago.

2014 Personal Income and Outlays

Personal income increased 3.9 percent in 2014 (that is, from the 2013 annual level to the 2014 annual level), compared with an increase of 2.0 percent in 2013. DPI increased 3.8 percent, compared with an increase of 1.0 percent. PCE increased 3.9 percent, compared with an increase of 3.6 percent.

Real DPI increased 2.4 percent in 2014, in contrast to a decrease of 0.2 percent in 2013. Real PCE increased 2.5 percent, compared with an increase of 2.4 percent.

Revisions

Estimates have been revised for October and November. Changes in personal income, in current-dollar and chained (2009) dollar DPI, and in current-dollar and chained (2009) dollar PCE for October and November -- revised and as published in last month's release -- are shown below.