Personal Income and Outlays, July 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 $67.1 billion, or 0.4 percent, and disposable personal income (DPI) increased $61.5 billion, or 0.5 percent, in July, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $37.4 billion, or 0.3 percent. In June, personal income increased $59.4 billion, or 0.4 percent, DPI increased $52.4 billion, or 0.4 percent, and PCE increased $31.8 billion, or 0.3 percent, based on revised estimates.

Real DPI increased 0.4 percent in July, compared with an increase of 0.2 percent in June. Real PCE increased 0.2 percent, compared to an increase of less than 0.1 percent.

This news release presents revised estimates of wages and salaries, personal taxes, and contributions for government social insurance for January through March 2015 (first quarter). These estimates reflect the incorporation of the most recently available first-quarter wage and salary tabulations from the quarterly census of employment and wages from the Bureau of Labor Statistics. ___________________ 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 (2009) dollars.

Compensation

Wages and salaries increased $35.8 billion in July, compared with an increase of $14.3 billion in June. Private wages and salaries increased $32.7 billion, compared with an increase of $11.0 billion. Government wages and salaries increased $3.1 billion, compared with an increase of $3.3 billion.

Supplements to wages and salaries increased $6.0 billion in July, compared with an increase of $4.6 billion in June.

Other personal income

Proprietors' income increased $11.3 billion in July, compared with an increase of $7.8 billion in June. Farm proprietors' income increased $0.4 billion, compared with an increase of $2.7 billion. Nonfarm proprietors' income increased $10.9 billion, compared with an increase of $5.1 billion.

Rental income of persons increased $4.4 billion in July, compared with an increase of $7.4 billion in June. Personal income receipts on assets (personal interest income plus personal dividend income) increased $0.9 billion, compared with an increase of $20.6 billion. Personal current transfer receipts increased $13.0 billion, compared with an increase of $6.2 billion.

Contributions for government social insurance -- a subtraction in calculating personal income -- increased $4.3 billion in July, compared with an increase of $1.5 billion in June.

Personal current taxes and disposable personal income

Personal current taxes increased $5.6 billion in July, compared with an increase of $7.0 billion in June. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $61.5 billion, or 0.5 percent, in July, compared with an increase of $52.4 billion, or 0.4 percent, in June.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $37.7 billion in July, compared with an increase of $36.5 billion in June. PCE increased $37.4 billion, compared with an increase of $31.8 billion.

Personal saving -- DPI less personal outlays -- was $651.1 billion in July, compared with $627.3 billion in June. The personal saving rate -- personal saving as a percentage of disposable personal income -- was 4.9 percent in July, compared with 4.7 percent in June. 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 0.4 percent in July, compared with an increase of 0.2 percent in June.

Real PCE -- PCE adjusted to remove price changes -- increased 0.2 percent in July, compared with an increase of less than 0.1 percent in June. Purchases of durable goods increased 1.3 percent, in contrast to a decrease of 0.9 percent. Purchases of motor vehicles and parts accounted for about half of the increase in July and most of the decrease in June. Purchases of nondurable goods increased 0.1 percent in July, the same increase as in June. Purchases of services increased 0.1 percent in July, compared with an increase of 0.2 percent in June.

The price index for PCE increased 0.1 percent in July, compared with an increase of 0.2 percent in June. The PCE price index, excluding food and energy, increased 0.1 percent in July, the same increase as in June.

The July price index for PCE increased 0.3 percent from July a year ago. The July PCE price index, excluding food and energy, increased 1.2 percent from July a year ago.

Revisions

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

Estimates of wages and salaries were revised from January through June. The revision to first-quarter wages and salaries reflects the incorporation of the most recently available BLS tabulations of first-quarter wages and salaries from the quarterly census of employment and wages. Revised estimates for April, May, and June reflect extrapolation from the revised first-quarter level of wages. In addition, revisions to May and June reflect revised BLS employment, hours, and earnings data for those months.