Personal Income and Outlays, June 2017; Annual Update 2014 through May 2017

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 decreased $3.5 billion (less than -0.1 percent) in June according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) decreased $4.2 billion (less than -0.1 percent) and personal consumption expenditures (PCE) increased $8.1 billion (0.1 percent).

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

The decrease in personal income in June primarily reflected decreases in personal dividend income and personal interest income that were partially offset by an increase in compensation of employees (table 3). The June decrease in personal dividend income reflected a return to prior levels after a notable increase in May.

The $4.5 billion increase in real PCE in June primarily reflected a $10.0 billion increase in spending for services that was partially offset by a decline of $4.4 billion in spending for nondurable goods and a decline of $2.3 billion in spending for durable goods (table 7). Within services, the primary contributor to the increase was spending for health care. Within goods, gasoline was the leading contributor to the decline. Detailed information on real PCE spending can be found on NIPA Table 2.3.6.

Personal outlays increased $14.1 billion in June (table 3). Personal saving was $546.4 billion in June and the personal saving rate, personal saving as a percentage of disposable personal income, was 3.8 percent (table 1).

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 2017. The update covers the most recent 3 years and the first 5 months of 2017. For more information, see information on the “2017 Annual Update” on BEA’s website. Additionally, the August Survey of Current Business will contain an article that describes the results in detail.

Updates

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 2014 through May 2017.

Revisions to annual estimates of personal income and outlays for 2014 through 2016 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 up $8.5 billion, or 0.1 percent, in 2014; $94.5 billion, or 0.6 percent, in 2015; and revised down $58.0 billion, or -0.4 percent, in 2016.

* For 2014, revisions to personal income and its components were generally small, and primarily reflected a $21.6 billion downward revision to nonfarm proprietors’ income that was partly offset by a $15.8 billion upward revision to personal dividend income. * For 2015, the revision to personal income primarily reflected upward revisions of $68.7 billion to personal dividend income and $64.5 billion to personal interest income that were partially offset by a downward revision of $71.7 billion to nonfarm proprietors’ income. * For 2016, the revision to personal income primarily reflected an upward revision of $100.8 billion to personal interest income that was more than offset by downward revisions of $94.3 billion to compensation of employees and $91.0 billion to nonfarm proprietors’ income.

DPI was revised up $9.9 billion, or 0.1 percent, in 2014; $95.2 billion, or 0.7 percent, in 2015; and revised down $57.2 billion, or -0.4 percent, in 2016. The percent change from the preceding year in real DPI was revised up 0.1 percentage point to 3.6 percent in 2014, revised up 0.7 percentage point to 4.2 percent in 2015, and revised down 1.2 percentage points to 1.4 percent in 2016.

Personal outlays was revised down $2.9 billion, or less than -0.1 percent, in 2014; revised up $50.5 billion, or 0.4 percent, in 2015; and revised up $60.9 billion, or 0.5 percent, in 2016. Revisions to personal outlays primarily reflect revisions to PCE.

The personal saving rate was revised up 0.1 percentage point to 5.7 percent in 2014, revised up 0.3 percentage point to 6.1 percent in 2015, and revised down 0.8 percentage point to 4.9 percent in 2016.

QCEW Data Included in the First Quarter of 2017

BEA’s data on wages and salaries for the first quarter of 2017 were based on expedited information from state employment offices across the country. BEA acknowledges the special efforts by the Bureau of Labor Statistics with the assistance of these state employment offices in providing preliminary data from the Quarterly Census of Employment and Wages (QCEW).