Personal Income and Outlays, January 2016

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 $79.6 billion, or 0.5 percent, and disposable personal income (DPI) increased $63.5 billion, or 0.5 percent, in January, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $63.0 billion, or 0.5 percent. In December, personal income increased $45.6 billion, or 0.3 percent, DPI increased $39.2 billion, or 0.3 percent, and PCE increased $11.6 billion, or 0.1 percent, based on revised estimates.

Real DPI increased 0.4 percent in January, the same increase as in December. Real PCE increased 0.4 percent in January, compared with an increase of 0.2 percent in December.

This news release presents revised estimates of wages and salaries, personal taxes, and contributions for government social insurance for July through September 2015 (third quarter). These estimates reflect the incorporation of the most recently available third-quarter wage and salary tabulations from the Quarterly Census of Employment and Wages (QCEW) from the Bureau of Labor Statistics.

Compensation

Wages and salaries increased $48.1 billion in January, compared with an increase of $18.3 billion in December. Private wages and salaries increased $43.7 billion, compared with an increase of $15.9 billion. Government wages and salaries increased $4.4 billion, compared with an increase of $2.4 billion.

Supplements to wages and salaries increased $6.5 billion in January, compared with an increase of $5.0 billion in December.

Other personal income

Proprietors' income increased $7.7 billion in January, compared with an increase of $11.5 billion in December. Farm proprietors' income increased $3.1 billion, in contrast to a decrease of $4.8 billion. Nonfarm proprietors' income increased $4.6 billion, compared with an increase of $16.3 billion.

Rental income of persons increased $5.0 billion in January, compared with an increase of $3.8 billion in December. Personal income receipts on assets (personal interest income plus personal dividend income) increased $11.6 billion, in contrast to a decrease of $8.5 billion.

Personal current transfer receipts increased $10.6 billion in January, compared with an increase of $17.5 billion in December.

Contributions for government social insurance -- a subtraction in calculating personal income -- increased $10.0 billion in January, compared with an increase of $2.0 billion in December.

Personal current taxes and disposable personal income

Personal current taxes increased $16.1 billion in January, compared with an increase of $6.3 billion in December. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $63.5 billion, or 0.5 percent, compared with an increase of $39.2 billion, or 0.3 percent.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $67.5 billion in January, compared with an increase of $14.3 billion in December. PCE increased $63.0 billion, compared with an increase of $11.6 billion.

Personal saving -- DPI less personal outlays -- was $705.1 billion in January, compared with $709.2 billion in December. The personal saving rate -- personal saving as a percentage of disposable personal income -- was 5.2 percent, the same rate as in December. 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 January, the same increase as in December.

Real PCE -- PCE adjusted to remove price changes -- increased 0.4 percent in January, compared with an increase of 0.2 percent in December. Purchases of durable goods increased 1.1 percent, in contrast to a decrease of 0.4 percent. Purchases of nondurable goods increased 0.4 percent, in contrast to a decrease of 0.1 percent. Purchases of services increased 0.3 percent, the same increase as in December.

The price index for PCE increased 0.1 percent in January, in contrast to a decrease of 0.1 percent in December. The PCE price index, excluding food and energy, increased 0.3 percent, compared with an increase of 0.1 percent.

The January PCE price index increased 1.3 percent from January a year ago. The January PCE price index, excluding food and energy, increased 1.7 percent from January a year ago.

2015 Personal Income and Outlays

Personal income increased 4.4 percent in 2015 (that is, from the 2014 annual level to the 2015 annual level), the same increase as in 2014. DPI increased 3.7 percent in 2015, compared with an increase of 4.2 percent in 2014. PCE increased 3.4 percent, compared with an increase of 4.2 percent.

Real DPI increased 3.4 percent in 2015, compared with an increase of 2.7 percent in 2014. Real PCE increased 3.1 percent, compared with an increase of 2.7 percent.

Revisions

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

Estimates of wages and salaries were revised from July through December. The revision to third-quarter wages and salaries reflected the incorporation of the most recently available Bureau of Labor Statistics tabulations of the third-quarter wages and salaries from the Quarterly Census of Employment and Wages. Revised estimates for October, November, and December reflect extrapolations from the revised third-quarter level of wages. In addition, revisions to July through December reflect revised BLS employment, hours, and earnings data.