Bloomberg News

U.S. May Personal Income and Spending (Text)

June 27, 2013

Following is the text of the U.S. personal income report for May from the Commerce Department.

PERSONAL INCOME AND OUTLAYS: MAY 2013

Personal income increased $69.4 billion, or 0.5 percent, and disposable personal income (DPI) increased $57.0 billion, or 0.5 percent, in May, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $29.0 billion, or 0.3 percent. In April, personal income increased $18.3 billion, or 0.1 percent, DPI increased $6.5 billion, or 0.1 percent, and PCE decreased $39.6 billion, or 0.3 percent, based on revised estimates.

Real disposable income increased 0.4 percent in May, compared with an increase of 0.3 percent in April. Real PCE increased 0.2 percent, in contrast to a decrease of 0.1 percent.

________________________

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.

Wages and salaries

Private wage and salary disbursements increased $19.7 billion in May, compared with an increase of $6.5 billion in April. Goods-producing industries’ payrolls increased $3.9 billion, in contrast to a decrease of $0.8 billion; manufacturing payrolls increased $0.6 billion, in contrast to a decrease of $1.1 billion. Services-producing industries’ payrolls increased $15.8 billion, compared with an increase of $7.4 billion. Government wage and salary disbursements increased $0.8 billion, compared with an increase of $0.2 billion.

Other personal income

Supplements to wages and salaries increased $3.4 billion in May, compared with an increase of $2.5 billion in April.

Proprietors’ income decreased $1.3 billion in May, in contrast to an increase of $1.1 billion in April. Farm proprietors’ income decreased $6.7 billion in May, the same decrease as in April. Nonfarm proprietors’ income increased $5.4 billion in May, compared with an increase of $7.8 billion in April.

Rental income of persons decreased $0.7 billion in May, compared with a decrease of $1.5 billion in April. Personal income receipts on assets (personal interest income plus personal dividend income) increased $31.2 billion, compared with an increase of $26.7 billion.

Personal current transfer receipts increased $19.4 billion in May, in contrast to a decrease of $15.7 billion in April. Within current transfer receipts, government social benefits to persons for social security increased $11.8 billion, in contrast to a decrease of $9.6 billion.

Contributions for government social insurance -- a subtraction in calculating personal income --increased $3.1 billion in May, compared with an increase of $1.4 billion in April.

Personal current taxes and disposable personal income

Personal current taxes increased $12.5 billion in May, compared with an increase of $11.8 billion in April. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $57.0 billion, or 0.5 percent, in May, compared with an increase of $6.5 billion, or 0.1 percent in April.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments --increased $28.5 billion in May, in contrast to a decrease of $40.0 billion in April. PCE increased $29.0 billion, in contrast to a decrease of $39.6 billion.

Personal saving -- DPI less personal outlays -- was $387.6 billion in May, compared with $359.2 billion in April. The personal saving rate -- personal saving as a percentage of disposable personal income -- was 3.2 percent in May, compared with 3.0 percent in April. 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 0.4 percent in May, compared with an increase of 0.3 percent in April.

Real PCE -- PCE adjusted to remove price changes -- increased 0.2 percent in May, in contrast to a decrease of 0.1 percent in April. Purchases of durable goods increased 1.0 percent, compared with an increase of 0.2 percent. Purchases of nondurable goods increased 0.5 percent, in contrast to a decrease of 0.3 percent. Purchases of services decreased 0.1 percent in May, the same decrease as in April.

The price index for PCE increased 0.1 percent in May, in contrast to a decrease of 0.3 percent in April. The PCE price index, excluding food and energy, increased 0.1 percent, compared with an increase of less than 0.1 percent.

Comprehensive Revision of the National Income and Product Accounts As part of the 14th comprehensive (or benchmark) revision of the national income and product accounts (NIPAs), BEA will release revised estimates of personal income and outlays in conjunction with preliminary estimates for June 2013 on August 2, 2013. More information on the revision is available on BEA’s Web site at www.bea.gov/gdp-revisions. An article in the March 2013 issue of the Survey of Current Business discusses the upcoming changes in definitions and presentations, and an article in the May Survey describes the changes in statistical methods. Revised NIPA table stubs and news release stubs are also available on the Web site. An article in the September Survey will describe the estimates in detail.

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 - August 2, 2013 at 8:30 A.M. EDT for

Personal Income and Outlays for June and

Revised Estimates for 1959 through May 2013

SOURCE: U.S. Commerce Department. http://www.bea.gov

To contact the reporter on this story: Kristy Scheuble in Washington at kmckeaney@bloomberg.net

To contact the editor responsible for this story: Marco Babic at mbabic@bloomberg.net


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