Personal Income and Outlays, April 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 $69.8 billion, or 0.4 percent, and disposable personal income (DPI) increased $63.5 billion, or 0.5 percent, in April, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $119.2 billion, or 1.0 percent. In March, personal income increased $56.7 billion, or 0.4 percent, DPI increased $49.6 billion, or 0.4 percent, and PCE increased $3.7 billion, or less than 0.1 percent, based on revised estimates.

Real DPI increased 0.2 percent in April, compared with an increase of 0.3 percent in March. Real PCE increased 0.6 percent, in contrast to a decrease 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 October through December 2015 (fourth quarter). These estimates reflect the incorporation of the most recently available fourth-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 $38.6 billion in April, compared with an increase of $30.7 billion in March. Private wages and salaries increased $37.2 billion, compared with an increase of $27.6 billion. Government wages and salaries increased $1.4 billion, compared with an increase of $3.1 billion.

Supplements to wages and salaries increased $5.9 billion in April, compared with an increase of $5.5 billion in March.

Other personal income

Proprietors' income increased $7.8 billion in April, in contrast to a decrease of $1.0 billion in March. Farm proprietors' income increased $0.3 billion, in contrast to a decrease of $1.5 billion. Nonfarm proprietors' income increased $7.5 billion, compared with an increase of $0.6 billion.

Rental income of persons increased $2.5 billion in April, compared with an increase of $5.5 billion in March. Personal income receipts on assets (personal interest income plus personal dividend income) increased $7.2 billion, compared with an increase of $13.1 billion.

Personal current transfer receipts increased $12.5 billion in April, compared with an increase of $6.3 billion in March. Within current transfer receipts, government social benefit payments to persons for April increased $12.3 billion, primarily reflecting an upturn in Social Security payments.

Contributions for government social insurance -- a subtraction in calculating personal income -- increased $4.7 billion in April, compared with an increase of $3.4 billion in March.

Personal current taxes and disposable personal income

Personal current taxes increased $6.3 billion in April, compared with an increase of $7.1 billion in March. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $63.5 billion, or 0.5 percent, compared with an increase of $49.6 billion, or 0.4 percent.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $121.7 billion in April, compared with an increase of $1.8 billion in March. PCE increased $119.2 billion, compared with an increase of $3.7 billion.

Personal saving -- DPI less personal outlays -- was $751.1 billion in April, compared with $809.4 billion in March. The personal saving rate -- personal saving as a percentage of disposable personal income -- was 5.4 percent, compared with 5.9 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 0.2 percent in April, compared with an increase of 0.3 percent in March.

Real PCE -- PCE adjusted to remove price changes -- increased 0.6 percent in April, in contrast to a decrease of less than 0.1 percent in March. Purchases of durable goods increased 2.2 percent, compared with an increase of 0.2 percent. Purchases of motor vehicles and parts accounted for most of the increase in April. Purchases of nondurable goods increased 0.7 percent in April, compared with an increase of 0.4 percent in March. Purchases of services increased 0.4 percent, in contrast to a decrease of 0.2 percent.

The price index for PCE increased 0.3 percent in April, compared with an increase of 0.1 percent in March. The PCE price index, excluding food and energy, increased 0.2 percent, compared with an increase of 0.1 percent.

The April PCE price index increased 1.1 percent from April a year ago. The April PCE price index, excluding food and energy, increased 1.6 percent from April a year ago.

Revisions

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

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

Upcoming Annual Revision of the National Income and Product Accounts

As part of the annual revision of the national income and product accounts (NIPAs), revised estimates of personal income and outlays will be released in conjunction with preliminary estimates for June 2016 on August 2, 2016. This regular revision of the estimates will cover the most recent 3 years and the first 5 months of 2016. For more information, see "Preview of the Upcoming Annual NIPA Revision" included in the May Survey of Current Business article on "GDP and the Economy".