Personal Income and Outlays, February 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 $23.7 billion, or 0.2 percent, and disposable personal income (DPI) increased $23.7 billion, or 0.2 percent, in February, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $11.0 billion, or 0.1 percent. In January, personal income increased $72.7 billion, or 0.5 percent, DPI increased $57.2 billion, or 0.4 percent, and PCE increased $10.7 billion, or 0.1 percent, based on revised estimates.

Real DPI increased 0.3 percent in February, the same increase as in January. Real PCE increased 0.2 percent in February, in contrast to a decrease of less than 0.1 percent in January.

Compensation

Wages and salaries decreased $9.4 billion in February, in contrast to an increase of $46.5 billion in January. Private wages and salaries decreased $12.9 billion, in contrast to an increase of $41.9 billion. Government wages and salaries increased $3.5 billion, compared with an increase of $4.6 billion.

Supplements to wages and salaries increased $2.4 billion in February, compared with an increase of $6.1 billion in January.

Other personal income

Proprietors' income increased $0.6 billion in February, compared with an increase of $3.9 billion in January. Farm proprietors' income increased $2.1 billion, the same increase as in January. Nonfarm proprietors' income decreased $1.5 billion in February, in contrast to an increase of $1.8 billion in January.

Rental income of persons increased $6.7 billion in February, compared with an increase of $6.0 billion in January. Personal income receipts on assets (personal interest income plus personal dividend income) increased $7.3 billion, compared with an increase of $8.8 billion.

Personal current transfer receipts increased $14.1 billion in February, compared with an increase of $10.7 billion in January.

Contributions for government social insurance -- a subtraction in calculating personal income -- decreased $2.0 billion in February, in contrast to an increase of $9.4 billion in January.

Personal current taxes and disposable personal income

Personal current taxes increased less than $0.1 billion in February, compared with an increase of $15.6 billion in January. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $23.7 billion, or 0.2 percent, compared with an increase of $57.2 billion, or 0.4 percent.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $10.4 billion in February, compared with an increase of $14.7 billion in January. PCE increased $11.0 billion, compared with an increase of $10.7 billion.

Personal saving -- DPI less personal outlays -- was $733.6 billion in February, compared with $720.3 billion in January. The personal saving rate -- personal saving as a percentage of disposable personal income -- was 5.4 percent, compared with 5.3 percent. 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 0.3 percent in February, the same increase as in January.

Real PCE -- PCE adjusted to remove price changes -- increased 0.2 percent in February, in contrast to a decrease of less than 0.1 percent in January. Purchases of durable goods increased 0.3 percent , in contrast to a decrease of 0.8 percent. Purchases of motor vehicles and parts accounted for about half of the increase. Purchases of nondurable goods decreased 0.3 percent in February, compared with a decrease of 0.1 percent in January. Purchases of services increased 0.3 percent, compared with an increase of 0.1 percent.

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

The February PCE price index increased 1.0 percent from February a year ago. The February PCE price index, excluding food and energy, increased 1.7 percent from February 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 October 2015 through January 2016. Changes in personal income, in current-dollar and chained (2009) dollar DPI, and in current-dollar and chained (2009) dollar PCE for December and for January -- revised and as published in last month's release -- are shown below.