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Personal Income and Outlays, February 2010

Wed, 03/31/2010 - 6:27am
U.S. Bureau of Economic Analysis

Personal income increased $1.2 billion, or less than 0.1 percent, and disposable personal income (DPI) increased $1.6 billion, or less than 0.1 percent, in February, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $34.7 billion, or 0.3 percent. In January, personal income increased $30.4 billion, or 0.3 percent, DPI decreased $26.0 billion, or 0.2 percent, and PCE increased $38.5 billion, or 0.4 percent, based on revised estimates. Real disposable income increased less than 0.1 percent in February, in contrast to a decrease of 0.4 percent in January. Real PCE increased 0.3 percent, compared with an increase of 0.2 percent. 2009 2010 Oct. Nov. Dec. Jan. Feb. (Percent change from preceding month) Personal income, current dollars 0.2 0.4 0.4 0.3 0.0 Disposable personal income: Current dollars 0.2 0.4 0.5 -0.2 0.0 Chained (2005) dollars -0.1 0.2 0.3 -0.4 0.0 Personal consumption expenditures: Current dollars 0.6 0.5 0.4 0.4 0.3 Chained (2005) dollars 0.3 0.3 0.2 0.2 0.3 Compensation of employees Private wage and salary disbursements increased $2.0 billion in February, compared with an increase of $16.6 billion in January. Goods-producing industries' payrolls decreased $3.5 billion, in contrast to an increase of $5.2 billion; manufacturing payrolls decreased $1.4 billion, in contrast to an increase of $5.0 billion. Services-producing industries' payrolls increased $5.5 billion, compared with an increase of $11.4 billion. Government wage and salary disbursements increased $0.7 billion in February, compared with an increase of $6.8 billion in January. Pay raises for federal civilian and military personnel had added $7.1 billion to government payrolls in January. Employer contributions for employee pension and insurance funds increased $2.7 billion in February, compared with an increase of $3.2 billion in January. Employer contributions for government social insurance increased $0.3 billion in February, compared with an increase of $11.5 billion in January. The January change reflected an increase in the tax rates paid by employers to state unemployment insurance funds, which had boosted January contributions by $10.2 billion. (Changes in employer contributions for government social insurance do not affect personal income, because employer contributions for government social insurance are also included in total contributions for government social insurance, which is a subtraction in the calculation of personal income.) Other personal income Proprietors' income decreased $6.1 billion in February, the same decrease as in January. Farm proprietors' income decreased $7.1 billion, the same decrease as in January. Nonfarm proprietors' income increased $1.0 billion, the same increase as in January. Rental income of persons increased $2.2 billion in February, compared with an increase of $1.9 billion in January. Personal income receipts on assets (personal interest income plus personal dividend income) decreased $16.5 billion, the same decrease as in January. Personal current transfer receipts increased $16.6 billion in February, compared with an increase of $29.8 billion in January. The January change reflected the Making Work Pay Credit provision of the American Recovery and Reinvestment Act of 2009, which boosted January receipts by $19.8 billion. The Act provides for a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers. When an individual?s tax credit exceeds the taxes owed, the refundable tax credit payment is classified as ?other? government social benefits to persons. Contributions for government social insurance -- a subtraction in calculating personal income -- increased $0.7 billion in February, compared with an increase of $16.7 billion in January. As noted above, employer contributions were boosted $10.2 billion in January by increases in unemployment-insurance rates. Personal current taxes and disposable personal income Personal current taxes decreased $0.5 billion in February, in contrast to an increase of $56.5 billion in January. Federal net nonwithheld income taxes (payments of estimated taxes plus final settlements less refunds) had been boosted in January by $52.5 billion, based on federal budget projections of higher final settlements and lower refunds for 2010. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $1.6 billion, or less than 0.1 percent, in February, in contrast to a decrease of $26.0 billion, or 0.2 percent, in January. Personal outlays and personal saving Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $36.4 billion in February, compared with an increase of $40.4 billion in January. PCE increased $34.7 billion, compared with an increase of $38.5 billion. Personal saving -- DPI less personal outlays -- was $340.0 billion in February, compared with $374.9 billion in January. Personal saving as a percentage of disposable personal income was 3.1 percent in February, compared with 3.4 percent in January. For a comparison of personal saving in BEA?s national income and product accounts with personal saving in the Federal Reserve Board?s flow of funds accounts and data on changes in net worth, go to http://www.bea.gov/national/nipaweb/Nipa-Frb.asp. Real DPI, real PCE and PCE price index Real DPI -- DPI adjusted to remove price changes -- increased less than 0.1 percent in February, in contrast to a decrease of 0.4 percent in January. Real PCE -- PCE adjusted to remove price changes -- increased 0.3 percent in February, compared with an increase of 0.2 percent in January. Purchases of durable goods decreased 0.2 percent, compared with a decrease of 0.7 percent. Purchases of nondurable goods increased 0.9 percent, compared with an increase of 0.7 percent. Purchases of services increased 0.3 percent, compared with an increase of 0.2 percent. PCE price index -- The price index for PCE decreased less than 0.1 percent in February, in contrast to an increase of 0.2 percent in January. The PCE price index, excluding food and energy, increased less than 0.1 percent, in contrast to a decrease of less than 0.1 percent. Revisions Estimates have been revised for October 2009 through January 2010. Changes in personal income, current-dollar and chained (2005) dollar DPI, and current-dollar and chained (2005) dollar PCE for December and January -- revised and as published in last month's release -- are shown below. Change from preceding month December January Previous Revised Previous Revised Previous Revised Previous Revised (Billions of dollars) (Percent) (Billions of dollars) (Percent) Personal Income: Current dollars 41.2 52.5 0.3 0.4 11.4 30.4 0.1 0.3 Disposable personal income: Current Dollars 40.3 51.2 0.4 0.5 -47.6 -26.0 -0.4 -0.2 Chained (2005) dollars 22.7 30.8 0.2 0.3 -60.8 -40.1 -0.6 -0.4 Personal consumption expenditures: Current dollars 26.4 37.0 0.3 0.4 52.4 38.5 0.5 0.4 Chained (2005) dollars 11.1 19.0 0.1 0.2 31.0 19.6 0.3 0.2 BEA?s national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA?s Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. * * * Next release ? May 3, 2010 at 8:30 A.M. EDT for Personal Income and Outlays for March. -more- ________________________ NOTE. - - Monthly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified. Month-to-month dollar changes are differences between these published estimates. Month-to-month percent changes are calculated from unrounded data and are not annualized. ?Real? estimates are in chained (2005) dollars. This news release is available on BEA?s Web site at www.bea.gov/newsreleases/rels.htm.

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