Personal Income and Outlays, June 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 $29.3 billion (0.2 percent) in June according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $24.6 billion (0.2 percent) and personal consumption expenditures (PCE) increased $53.0 billion (0.4 percent).

Real DPI increased 0.1 percent in June and Real PCE increased 0.3 percent. The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.1 percent.

The increase in personal income in June primarily reflected increases in private wages and salaries and nonfarm proprietors’ income that were partly offset by decreases in personal dividend income and personal interest income.

The increase in real PCE in June primarily reflected increases in spending for electricity and gas, healthcare services, and other nondurable goods, that were partly offset by a decrease in spending for new motor vehicles.

Personal outlays increased $58.3 billion in June. Personal saving was $732.0 billion in June and the personal saving rate, personal saving as a percentage of disposable personal income, was 5.3 percent.

Annual Update of the National Income and Product Accounts

The estimates released today reflect the results of the annual update of the national income and product accounts (NIPAs) in conjunction with preliminary estimates for June 2016. The update covers the most recent 3 years and the first 5 months of 2016. For more information, see “Information on the 2016 Annual Update” on BEA’s website. Additionally, the August Survey of Current Business will contain an article that describes the results in detail

Revisions

Revisions to the personal income and outlays estimates reflect the results of the recent annual update of the national income and product accounts (NIPAs). These updates, usually made each July, incorporate newly available and more comprehensive source data, as well as improved estimation methodologies. This year’s update covers the period January 2013 through May 2016.

Revisions to annual estimates of personal income and outlays for 2013 through 2015 are shown in Table 12. Revised and previously published monthly estimates of personal income, DPI, PCE, personal saving as a percentage of DPI, real DPI, and real PCE are shown in Table 13. Revised and previously published annual and quarterly estimates are shown in Table 14.

Personal income was revised upward $5.3 billion, or less than 0.1 percent, for 2013, $115.5 billion, or 0.8 percent, for 2014, and $107.8 billion, or 0.7 percent, for 2015.

* For 2013, revisions to personal income and its components were small.

* For 2014, upward revisions to personal dividend income, government social benefits to persons, and supplements to wages and salaries were partly offset by downward revisions to farm proprietors’ income and rental income of persons.

* For 2015, upward revisions to personal dividend income, wages and salaries, personal current transfer receipts, nonfarm proprietors’ income, and supplements to wages and salaries were partly offset by downward revisions to farm proprietors’ income and personal interest income.

DPI was revised upward $0.2 billion, or less than 0.1 percent, for 2013, $108.8 billion, or 0.8 percent, for 2014, and $116.6 billion, or 0.9 percent, for 2015. The percent change from the preceding year in real DPI was the same as previously published in 2013, decreasing 1.4 percent. It was revised upward from an increase of 2.7 percent to an increase of 3.5 percent in 2014, and was the same as previously published in 2015, increasing 3.5 percent.

Personal outlays was revised downward $30.0 billion, or 0.3 percent, for 2013. It was revised upward $3.0 billion, or less than 0.1 percent, for 2014, and $18.7 billion, or 0.1 percent, for 2015. Revisions to personal outlays primarily reflected revisions to PCE.

The personal saving rate was revised upward 0.2 percentage point from 4.8 percent to 5.0 percent in 2013, 0.8 percentage point from 4.8 percent to 5.6 percent in 2014, and 0.7 percentage point from 5.1 percent to 5.8 percent in 2015.

QCEW Data Included in the First Quarter of 2016

BEA’s data on wages and salaries for the first quarter of 2016 were based on information from the District of Columbia and 42 state employment offices, a much larger universe than in the past. BEA acknowledges the special efforts by the Bureau of Labor Statistics with the assistance of state employment offices in providing preliminary data from the Quarterly Census of Employment and Wages (QCEW).