Personal Income and Outlays, May 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 $79.0 billion, or 0.5 percent, and disposable personal income (DPI) increased $65.5 billion, or 0.5 percent, in May, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $105.9 billion, or 0.9 percent. In April, personal income increased $69.6 billion, or 0.5 percent, DPI increased $57.0 billion, or 0.4 percent, and PCE increased $8.5 billion, or 0.1 percent, based on revised estimates.

Real DPI increased 0.2 percent in May, compared with an increase of 0.4 percent in April. Real PCE increased 0.6 percent, compared with an increase of less than 0.1 percent.

Compensation

Wages and salaries increased $37.1 billion in May, compared with an increase of $21.6 billion in April. Private wages and salaries increased $34.8 billion, compared with an increase of $19.4 billion. Government wages and salaries increased $2.4 billion, compared with an increase of $2.1 billion.

Supplements to wages and salaries increased $5.7 billion in May, compared with an increase of $4.5 billion in April.

Other personal income

Proprietors' income increased $10.5 billion in May, compared with an increase of $4.4 billion in April. Farm proprietors' income increased $3.9 billion in May, the same increase as in April. Nonfarm proprietors' income increased $6.5 billion in May, compared with an increase of $0.5 billion in April.

Rental income of persons increased $5.4 billion in May, compared with an increase of $5.0 billion in April. Personal income receipts on assets (personal interest income plus personal dividend income) increased $22.8 billion, compared with an increase of $30.4 billion. Personal current transfer receipts increased $2.4 billion in May, compared with an increase of $6.2 billion in April.

Contributions for government social insurance -- a subtraction in calculating personal income -- increased $4.8 billion in May, compared with an increase of $2.6 billion in April.

Personal current taxes and disposable personal income

Personal current taxes increased $13.5 billion in May, compared with an increase of $12.6 billion in April.

Disposable personal income (DPI) -- personal income less personal current taxes -- increased $65.5 billion, or 0.5 percent, in May, compared with an increase of $57.0 billion, or 0.4 percent, in April.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $106.9 billion in May, compared with an increase of $9.5 billion in April. PCE increased $105.9 billion, compared with an increase of $8.5 billion.

Personal saving -- DPI less personal outlays -- was $685.5 billion in May, compared with $726.9 billion in April. The personal saving rate -- personal saving as a percentage of disposable personal income -- was 5.1 percent in May, compared with 5.4 percent in April. 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 May, compared with an increase of 0.4 percent in April.

Real PCE -- PCE adjusted to remove price changes -- increased 0.6 percent in May, compared with an increase of less than 0.1 percent in April. Purchases of durable goods increased 2.3 percent, in contrast to a decrease of 0.1 percent. Purchases of motor vehicles and parts accounted for about half of the increase in May, and more than accounted for the decrease in April. Purchases of nondurable goods increased 0.9 percent in May, in contrast to a decrease of 0.3 percent in April. Purchases of services increased 0.2 percent in May, the same increase as in April.

The price index for PCE increased 0.3 percent in May, compared with an increase of less than 0.1 percent in April. The PCE price index, excluding food and energy, increased 0.1 percent in May, the same increase as in April.

The May price index for PCE increased 0.2 percent from May a year ago. The May PCE price index, excluding food and energy, increased 1.2 percent from May a year ago.

Revisions

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

Upcoming Annual Revision of the National Income and Product Accounts

As part of the annual revision of the national income and product accounts, revised estimates of personal income and outlays will be released in conjunction with preliminary estimates for June 2015 on August 3, 2015. In addition to the regular revision of estimates for the most recent 3 years and for the first 5 months of 2015, personal income and select components will be revised back further. The June Survey of Current Business will contain an article that previews the annual revision, and the August Survey will contain an article that describes the results.