Personal Income and Outlays, February 2015

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 $58.6 billion, or 0.4 percent, and disposable personal income (DPI) increased $54.2 billion, or 0.4 percent, in February, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $11.8 billion, or 0.1 percent. In January, personal income increased $61.8 billion, or 0.4 percent, DPI increased $61.5 billion, or 0.5 percent, and PCE decreased $28.5 billion, or 0.2 percent, based on revised estimates.

Real DPI increased 0.2 percent in February, compared with an increase of 0.9 percent in January. Real PCE decreased 0.1 percent, in contrast to an increase of 0.2 percent.

Compensation

Wages and salaries increased $23.9 billion in February, compared with an increase of $47.3 billion in January. Private wages and salaries increased $21.9 billion, compared with an increase of $44.2 billion. Government wages and salaries increased $2.1 billion, compared with an increase of $3.1 billion. Pay raises for federal civilian personnel added an additional $0.6 billion to the change in government payrolls in February; pay raises for federal civilian and military personnel added $2.2 billion to government payrolls in January.

Supplements to wages and salaries increased $5.2 billion in February, compared with an increase of $8.4 billion in January.

Other personal income

Proprietors' income decreased $7.0 billion in February, compared with a decrease of $11.7 billion in January. Farm proprietors' income decreased $6.3 billion, compared with a decrease of $6.4 billion. Nonfarm proprietors' income decreased $0.7 billion, compared with a decrease of $5.3 billion.

Rental income of persons increased $3.9 billion in February, compared with an increase of $1.8 billion in January. Personal income receipts on assets (personal interest income plus personal dividend income) increased $19.7 billion, in contrast to a decrease of $4.1 billion. Personal dividend income increased $25.3 billion, compared with an increase of $1.6 billion.

Personal current transfer receipts increased $15.9 billion in February, compared with an increase of $28.7 billion in January. In January, a 1.7-percent cost-of-living adjustment to social security benefits and several other federal transfer payment programs added $16.7 billion. Also in January, other government social benefits was boosted $5.3 billion, primarily reflecting health insurance premium subsidies paid in the form of tax credits to enrollees of the Affordable Care Act exchanges. For additional information, see the FAQ on “How will the Affordable Care Act affect BEA’s measure of personal income and outlays?” at www.bea.gov.

Contributions for government social insurance -- a subtraction in calculating personal income -- increased $3.0 billion in February, compared with an increase of $8.5 billion in January.

Personal current taxes and disposable personal income

Personal current taxes increased $4.4 billion in February, compared with an increase of $0.3 billion in January. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $54.2 billion, or 0.4 percent, in February, compared with an increase of $61.5 billion, or 0.5 percent, in January.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $14.2 billion in February, in contrast to a decrease of $25.4 billion in January. PCE increased $11.8 billion, in contrast to a decrease of $28.5 billion.

Personal saving -- DPI less personal outlays -- was $768.6 billion in February, compared with $728.7 billion in January. The personal saving rate -- personal saving as a percentage of disposable personal income -- was 5.8 percent in February, compared with 5.5 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 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 0.2 percent in February, compared with an increase of 0.9 percent in January.

Real PCE -- PCE adjusted to remove price changes -- decreased 0.1 percent in February, in contrast to an increase of 0.2 percent in January. Purchases of durable goods decreased 1.1 percent, in contrast to an increase of 0.7 percent. Purchases of motor vehicles and parts accounted for most of the decrease in February. Purchases of nondurable goods increased less than 0.1 percent in February, in contrast to a decrease of 0.1 percent in January. Purchases of services increased 0.1 percent, compared with an increase of 0.2 percent.

The price index for PCE increased 0.2 percent in February, in contrast to a decrease of 0.4 percent in January. The PCE price index, excluding food and energy, increased 0.1 percent in February, the same increase as in January.

The February price index for PCE increased 0.3 percent from February a year ago. The February PCE price index, excluding food and energy, increased 1.4 percent from February a year ago.

2014 Personal Income and Outlays

Personal income increased 4.0 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 2.5 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 2014 through January 2015. Changes in personal income, in current-dollar and chained (2009) dollar DPI, and in current-dollar and chained (2009) dollar PCE for December and January -- revised and as published in last month's release -- are shown below.