Personal income increased 0.6 % not inflation adjusted - savings low 0.2%

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News Release: Personal Income and Outlays
The entire release is available in PDF format. The tables in this release are available in an XLS spreadsheet.
Also available: a brief summary of highlights.



EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, WEDNESDAY, DECEMBER 1, 2004

James E. Rankin: (202) 606-5301 (Personal Income)BEA 04-54
Michael Armah: (202) 606-5302 (Personal Outlays)
Recorded message: (202) 606-5303

PERSONAL INCOME AND OUTLAYS: OCTOBER 2004

Personal income increased $61.7 billion, or 0.6 percent, and disposable personal income
(DPI) increased $53.6 billion, or 0.6 percent, in October, according to the Bureau of Economic
Analysis. Personal consumption expenditures (PCE) increased $61.2 billion, or 0.7 percent. In
September, personal income increased $19.1 billion, or 0.2 percent, DPI increased $14.0 billion,
or 0.2 percent, and PCE increased $51.4 billion, or 0.6 percent, based on revised estimates.





2004
June July Aug. Sept. Oct.
(Percent change from preceding month)
Personal income, current dollars 0.2 0.2 0.4 0.2 0.6

Disposable personal income:
Current dollars 0.2 0.1 0.4 0.2 0.6
Chained (2000) dollars 0.0 0.2 0.4 0.1 0.2

Personal consumption expenditures:
Current dollars -0.3 1.2 0.0 0.6 0.7
Chained (2000) dollars -0.6 1.2 0.0 0.5 0.3




This news release also presents revised estimates of wages and salaries, personal current
taxes, and contributions for government social insurance for April through June 2004 (second
quarter).



The October, September, and August estimates of personal income reflect the effects of
Hurricanes Charley, Frances, Ivan, and Jeanne, which hit the southeastern part of the United
States in August and September. The impact of the hurricanes is discussed more fully below.

For more information on how disasters are treated in the national accounts, see the discussion
on BEA's Web site at <http://www.bea.gov/bea/faq/national/disasters.htm>.



 Wages and salaries

Private wage and salary disbursements increased $27.7 billion in October, compared with an
increase of $22.1 billion in September. Goods-producing industries' payrolls increased $3.2
billion, compared with an increase of $3.5 billion; manufacturing payrolls decreased $1.1 billion,
in contrast to an increase of $1.7 billion. Services-producing industries' payrolls increased $24.5
billion, compared with an increase of $18.6 billion. Government wage and salary disbursements
increased $2.0 billion, compared with an increase of $2.2 billion.

Other personal income

Supplements to wages and salaries increased $4.6 billion in October, compared with an
increase of $5.3 billion in September.

Proprietors' income increased $17.4 billion in October, in contrast to a decrease of $6.5
billion in September. Farm proprietors' income increased $2.0 billion, in contrast to a decrease of
$1.1 billion. Nonfarm proprietors' income increased $15.4 billion in October, in contrast to a
decrease of $5.4 billion. Changes in nonfarm proprietors' income reflected the impact of
Hurricanes Charley, Frances, Ivan, and Jeanne, which had subtracted $8.9 billion (at an annual rate)
in September and had subtracted $3.2 billion (at an annual rate) in August.

Rental income of persons increased $26.8 billion in October, in contrast to a decrease of
$22.8 billion in September. Changes in rental income reflected the impact of Hurricanes Charley,
Frances, Ivan, and Jeanne, which had subtracted $30.3 billion (at an annual rate) in September and
had subtracted $10.6 billion (at an annual rate) in August.

Personal income receipts on assets (personal interest income plus personal dividend
income) increased $6.3 billion in October, compared with an increase of $3.6 billion in
September.

Personal current transfer receipts decreased $18.8 billion in October, in contrast to an
increase of $18.5 billion in September. Changes in personal current transfer receipts reflected
the impact of Hurricanes Charley, Frances, Ivan, and Jeanne, which had added $27.5 billion (at an
annual rate) in September and had added $13.6 billion (at an annual rate) in August.

Contributions for government social insurance -- a subtraction in calculating personal income
-- increased $4.1 billion in October, compared with an increase of $3.3 billion in September.

Personal current taxes and disposable personal income

Personal current taxes increased $8.2 billion in October, compared with an increase of $5.0
billion in September. Disposable personal income (DPI) -- personal income less personal current
taxes -- increased $53.6 billion, or 0.6 percent, in October, compared with an increase of $14.0
billion, or 0.2 percent, in September.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments
increased $63.4 billion in October, compared with an increase of $54.4 billion in September.
PCE increased $61.2 billion, compared with an increase of $51.4 billion.

Personal saving -- DPI less personal outlays -- was $17.7 billion in October, compared with
$27.5 billion in September. Personal saving as a percentage of disposable personal income was
0.2 percent in October, compared with 0.3 percent in September.

Real DPI and real PCE

Real DPI -- DPI adjusted to remove price changes -- increased 0.2 percent in October,
compared with an increase of 0.1 percent in September.

Real PCE -- PCE adjusted to remove price changes -- increased 0.3 percent in October,
compared with an increase of 0.5 percent in September. Purchases of durable goods increased 0.1
percent, compared with an increase of 1.1 percent. Purchases of nondurable goods increased 0.3
percent, compared with an increase of 0.7 percent. Purchases of services increased 0.4 percent,
the same increase as in September.

Revisions

Estimates for personal income and DPI have been revised for April through September;
estimates for PCE have been revised for July through September. Changes in personal income,
current-dollar and chained (2000) dollar DPI, and current-dollar and chained (2000) dollar PCE
for August and September -- revised and as published in last month's release -- are shown below.

For April through June, the revisions to wages and salaries reflected the incorporation of the
most recently available BLS tabulations of private wages and salaries from the state unemployment
insurance program. Revisions to personal current taxes and to contributions for government
social insurance reflected the revisions to wages and salaries.



Change from preceding month
August September

Previous Revised Previous Revised Previous Revised Previous Revised
(Billions of dollars) (Percent) (Billions of dollars) (Percent)

Personal Income:
Current dollars............... 25.3 36.0 0.3 0.4 15.1 19.1 0.2 0.2

Disposable personal income:
Current dollars............... 20.0 31.6 0.2 0.4 9.0 14.0 0.1 0.2
Chained (2000) dollars........ 18.0 28.3 0.2 0.4 1.9 6.7 0.0 0.1

Personal consumption expenditures:
Current dollars............... -6.4 0.4 -0.1 0.0 49.8 51.4 0.6 0.6
Chained (2000) dollars........ -6.5 -0.5 -0.1 0.0 39.9 41.5 0.5 0.5


 BEA's major national, international, regional, and industry estimates; the Survey of Current
Business; and BEA news releases are available without charge on BEA's Web site:

<www.bea.gov>

Summary BEA estimates are available on recorded messages at the time of public release at
the following telephone numbers:

(202) 606-5306 Gross domestic product
(202) 606-5303 Personal income and outlays
(202) 606-5362 U.S. international transactions

Most of BEA's estimates and analyses appear in the Survey of Current Business, BEA's
monthly journal. Subscriptions and single copies of the printed Survey are for sale by the
Superintendent of Documents, U.S. Government Printing Office. Internet: <bookstore.gpo.gov>;
phone: [phone]; fax: [phone]; mail: Stop SSOP, Washington, DC 20402-0001.




Beginning with this release, supplemental information on personal consumption expenditures (PCE)
prices was added to two tables. In tables 9 and 11, "market-based PCE" and "market-based PCE excluding
food and energy" are shown as addenda items. For several months, BEA has made the market-based
indexes available at the time of the personal income news release. For more information on the market-
based PCE measures, see the discussion under FAQs on BEA's Web site:
<http://www.bea.gov/bea/faq/national/markbsdPCE.htm>.




* * *


Next release -- Personal Income and Outlays for November will be released on
December 23, 2004, at 8:30 A.M. EST.

Table 1.--Personal Income and Its Disposition (Months)

-----------------------------------------------------------------------------------------------------------------------------------
Mar 04 Apr 04/r/ May 04/r/ Jun 04/r/ Jul 04/r/ Aug 04/r/ Sep 04/r/ Oct 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................ 9,484.9 9,550.0 9,603.8 9,624.2 9,641.3 9,677.3 9,696.4 9,758.1

Compensation of employees, received...... 6,512.4 6,553.0 6,593.0 6,594.1 6,629.8 6,656.7 6,686.3 6,720.4

Wage and salary disbursements.......... 5,254.8 5,290.8 5,325.0 5,322.7 5,353.0 5,374.5 5,398.8 5,428.5
Private industries................... 4,334.8 4,365.6 4,403.0 4,399.5 4,427.2 4,445.8 4,467.9 4,495.6
Goods-producing industries......... 1,018.9 1,028.2 1,038.7 1,037.9 1,040.0 1,047.6 1,051.1 1,054.3
Manufacturing.................... 668.0 675.3 683.5 682.6 683.7 689.1 690.8 689.7
Services-producing industries...... 3,316.0 3,337.4 3,364.3 3,361.6 3,387.3 3,398.2 3,416.8 3,441.3
Trade, transportation, and
utilities....................... 873.4 883.1 888.3 887.1 895.7 897.3 903.8 906.1
Other services-producing
industries...................... 2,442.6 2,454.3 2,475.9 2,474.5 2,491.6 2,501.0 2,513.0 2,535.2
Government........................... 920.0 925.2 922.0 923.2 925.8 928.7 930.9 932.9

Supplements to wages and salaries...... 1,257.6 1,262.2 1,268.0 1,271.4 1,276.8 1,282.1 1,287.4 1,292.0
Employer contributions for employee
pension and insurance funds......... 864.4 867.0 870.2 873.9 877.4 881.3 885.1 887.8
Employer contributions for government
social insurance.................... 393.3 395.2 397.8 397.4 399.3 400.8 402.3 404.1

Proprietors' income with inventory
valuation and capital consumption
adjustments............................. 883.5 893.5 901.2 909.4 905.8 905.2 898.7 916.1
Farm................................... 17.5 18.3 19.0 19.5 15.2 14.1 13.0 15.0
Nonfarm................................ 866.0 875.3 882.2 889.9 890.6 891.1 885.7 901.1

Rental income of persons with capital
consumption adjustment.................. 171.8 172.0 172.8 172.9 170.4 156.6 133.8 160.6

Personal income receipts on assets....... 1,338.8 1,345.4 1,352.2 1,359.4 1,362.9 1,366.3 1,369.9 1,376.2
Personal interest income............... 934.8 938.2 941.7 945.1 945.1 945.0 945.0 947.6
Personal dividend income............... 404.0 407.1 410.6 414.3 417.8 421.3 424.9 428.5

Personal current transfer receipts....... 1,384.7 1,396.6 1,400.6 1,404.1 1,392.4 1,415.6 1,434.1 1,415.3
Government social benefits to persons.. 1,355.3 1,367.3 1,371.3 1,374.8 1,363.1 1,372.8 1,377.3 1,386.1
Old-age, survivors, disability, and
health insurance benefits........... 767.3 772.7 774.7 774.6 778.0 782.3 786.9 791.6
Government unemployment insurance
benefits............................ 37.5 34.5 33.3 32.6 32.0 32.6 32.5 31.0
Other................................ 550.5 560.1 563.2 567.5 553.2 557.8 558.0 563.5
Other current transfer receipts, from
business (net)........................ 29.4 29.3 29.3 29.3 29.2 42.8 56.8 29.2

Less: Contributions for government social
insurance............................... 806.3 810.5 815.9 815.7 819.9 823.1 826.4 830.5

Less: Personal current taxes............... 1,009.6 1,024.5 1,032.6 1,034.6 1,039.6 1,044.1 1,049.1 1,057.3

Equals: Disposable personal income......... 8,475.3 8,525.4 8,571.2 8,589.6 8,601.7 8,633.3 8,647.3 8,700.9

Less: Personal outlays..................... 8,386.6 8,400.4 8,484.6 8,461.0 8,562.0 8,565.4 8,619.8 8,683.2

Personal consumption expenditures........ 8,097.7 8,108.3 8,189.8 8,163.3 8,260.9 8,261.3 8,312.7 8,373.9
Durable goods.......................... 985.3 967.9 999.8 958.7 1,015.9 996.7 1,008.3 1,010.2
Nondurable goods....................... 2,337.7 2,333.2 2,364.6 2,365.8 2,375.9 2,384.4 2,403.0 2,439.5
Services............................... 4,774.7 4,807.2 4,825.4 4,838.8 4,869.1 4,880.3 4,901.3 4,924.3
Personal interest payments\1\............ 178.1 180.3 182.6 184.9 187.4 189.8 192.3 193.8
Personal current transfer payments....... 110.8 111.7 112.2 112.8 113.8 114.3 114.9 115.4
To government.......................... 69.1 69.6 70.2 70.7 71.2 71.8 72.4 72.9
To the rest of the world (net)......... 41.7 42.1 42.1 42.1 42.5 42.5 42.5 42.5

Equals: Personal saving.................... 88.7 125.1 86.6 128.6 39.7 67.9 27.5 17.7

Personal saving as a percentage of
disposable personal income.............. 1.0 1.5 1.0 1.5 .5 .8 .3 .2

Addenda:
Disposable personal income:
Total, billions of chained (2000)
dollars\2\............................ 7,908.4 7,943.8 7,956.4 7,954.5 7,969.0 7,997.3 8,004.0 8,021.4
Per capita:
Current dollars...................... 28,921 29,070 29,203 29,242 29,258 29,339 29,360 29,517
Chained (2000) dollars............... 26,986 27,087 27,108 27,080 27,106 27,178 27,176 27,212
Population (midperiod, thousands)\3\..... 293,049 293,270 293,501 293,742 293,992 294,260 294,526 294,777
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary.
r Revised. Revisions include changes to series affected by the introduction
of revised wage and salary estimates for the second quarter of 2004.
2. Equals disposable personal income deflated by the implicit price deflator for
personal consumption expenditures.
3. Population is the total population of the United States, including the Armed
Forces overseas and the institutionalized population. The monthly estimate
is the average of estimates for the first of the month and the first of the
following month; the annual and quarterly estimates are averages of the
monthly estimates.

Table 2.--Personal Income and Its Disposition (Years and Quarters)

-----------------------------------------------------------------------------------------------------------------------------------
2002 2003 II 03 III 03 IV 03 I 04 II 04/r/ III 04/r/
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................ 8,878.9 9,161.8 9,105.7 9,209.3 9,330.0 9,445.0 9,592.7 9,671.7

Compensation of employees, received...... 6,069.5 6,289.0 6,247.0 6,324.7 6,406.7 6,487.9 6,580.0 6,657.6

Wage and salary disbursements.......... 4,976.3 5,103.6 5,073.3 5,128.6 5,188.9 5,239.2 5,312.8 5,375.5
Private industries................... 4,113.7 4,205.6 4,175.6 4,227.5 4,283.9 4,321.8 4,389.3 4,447.0
Goods-producing industries......... 1,010.2 1,007.7 999.7 1,005.8 1,025.6 1,019.0 1,034.9 1,046.2
Manufacturing.................... 675.2 668.8 663.4 665.9 680.1 669.9 680.5 687.9
Services-producing industries...... 3,103.5 3,198.0 3,175.9 3,221.6 3,258.3 3,302.9 3,354.4 3,400.8
Trade, transportation, and
utilities....................... 843.6 858.6 852.9 860.7 872.0 872.4 886.2 898.9
Other services-producing
industries...................... 2,259.9 2,339.4 2,322.9 2,360.9 2,386.4 2,430.5 2,468.3 2,501.8
Government........................... 862.6 897.9 897.8 901.1 905.0 917.3 923.5 928.5

Supplements to wages and salaries...... 1,093.2 1,185.5 1,173.7 1,196.1 1,217.8 1,248.8 1,267.2 1,282.1
Employer contributions for employee
pension and insurance funds......... 729.6 808.9 799.0 817.9 835.9 856.5 870.4 881.3
Employer contributions for government
social insurance.................... 363.6 376.6 374.6 378.2 381.9 392.3 396.8 400.8

Proprietors' income with inventory
valuation and capital consumption
adjustments............................. 769.6 834.1 825.7 852.0 864.7 872.1 901.4 903.2
Farm................................... 9.7 21.8 24.1 24.8 24.7 17.9 18.9 14.1
Nonfarm................................ 759.9 812.3 801.6 827.2 840.0 854.2 882.5 889.1

Rental income of persons with capital
consumption adjustment.................. 170.9 153.8 144.1 148.8 167.1 172.8 172.6 153.6

Personal income receipts on assets....... 1,334.6 1,322.7 1,324.7 1,314.4 1,325.8 1,337.1 1,352.3 1,366.4
Personal interest income............... 946.7 929.9 932.4 922.8 932.0 936.2 941.7 945.0
Personal dividend income............... 387.9 392.8 392.3 391.6 393.8 400.9 410.6 421.3

Personal current transfer receipts....... 1,282.7 1,335.4 1,333.1 1,346.2 1,350.7 1,379.0 1,400.4 1,414.0
Government social benefits to persons.. 1,248.9 1,306.4 1,304.1 1,317.4 1,322.0 1,349.6 1,371.1 1,371.1
Old-age, survivors, disability, and
health insurance benefits........... 708.3 733.8 731.1 736.6 744.9 762.1 774.0 782.4
Government unemployment insurance
benefits............................ 53.2 52.8 54.8 54.3 51.6 41.4 33.5 32.4
Other................................ 487.5 519.8 518.3 526.5 525.5 546.1 563.6 556.3
Other current transfer receipts, from
business (net)........................ 33.7 28.9 29.0 28.9 28.8 29.3 29.3 42.9

Less: Contributions for government social
insurance............................... 748.3 773.2 768.9 776.7 785.0 803.9 814.0 823.1

Less: Personal current taxes............... 1,051.2 1,001.9 1,030.7 941.7 1,009.4 1,006.6 1,030.6 1,044.3

Equals: Disposable personal income......... 7,827.7 8,159.9 8,075.0 8,267.6 8,320.5 8,438.4 8,562.1 8,627.4

Less: Personal outlays..................... 7,668.5 8,049.3 7,982.9 8,107.8 8,209.4 8,351.6 8,448.7 8,582.4

Personal consumption expenditures........ 7,376.1 7,760.9 7,696.3 7,822.5 7,914.9 8,060.2 8,153.8 8,278.3
Durable goods.......................... 916.2 950.7 946.8 972.7 971.1 976.3 975.5 1,007.0
Nondurable goods....................... 2,080.1 2,200.1 2,163.6 2,219.2 2,250.1 2,316.6 2,354.6 2,387.7
Services............................... 4,379.8 4,610.1 4,585.9 4,630.6 4,693.6 4,767.3 4,823.8 4,883.6
Personal interest payments\1\............ 197.2 185.3 184.8 183.3 185.9 181.1 182.6 189.8
Personal current transfer payments....... 95.3 103.1 101.8 102.1 108.6 110.3 112.2 114.3
To government.......................... 59.5 64.9 64.2 65.6 67.0 68.6 70.2 71.8
To the rest of the world (net)......... 35.7 38.2 37.6 36.5 41.6 41.7 42.1 42.5

Equals: Personal saving.................... 159.2 110.6 92.1 159.8 111.1 86.8 113.4 45.0

Personal saving as a percentage of
disposable personal income.............. 2.0 1.4 1.1 1.9 1.3 1.0 1.3 .5

Addenda:
Disposable personal income:
Total, billions of chained (2000)
dollars\2\............................ 7,559.5 7,733.8 7,671.1 7,822.9 7,849.6 7,897.0 7,951.5 7,990.1
Per capita:
Current dollars...................... 27,157 28,033 27,779 28,368 28,476 28,816 29,172 29,319
Chained (2000) dollars............... 26,227 26,569 26,389 26,842 26,865 26,967 27,092 27,153
Population (midperiod, thousands)\3\..... 288,240 291,085 290,689 291,445 292,190 292,838 293,504 294,262
-----------------------------------------------------------------------------------------------------------------------------------
r Revised. Revisions include changes to series affected by the introduction
of revised wage and salary estimates for the second quarter of 2004.
1. Consists of nonmortgage interest paid by households.
2. Equals disposable personal income deflated by the implicit price deflator for
personal consumption expenditures.
3. Population is the total population of the United States, including the Armed
Forces overseas and the institutionalized population. The monthly estimate
is the average of estimates for the first of the month and the first of the
following month; the annual and quarterly estimates are averages of the
monthly estimates.

Table 3.--Personal Income and Its Disposition, Change from Preceding Period (Months)

-----------------------------------------------------------------------------------------------------------------------------------
Mar 04 Apr 04/r/ May 04/r/ Jun 04/r/ Jul 04/r/ Aug 04/r/ Sep 04/r/ Oct 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................ 39.0 65.1 53.8 20.4 17.1 36.0 19.1 61.7

Compensation of employees, received...... 22.1 40.6 40.0 1.1 35.7 26.9 29.6 34.1

Wage and salary disbursements.......... 13.5 36.0 34.2 -2.3 30.3 21.5 24.3 29.7
Private industries................... 10.8 30.8 37.4 -3.5 27.7 18.6 22.1 27.7
Goods-producing industries......... .7 9.3 10.5 -.8 2.1 7.6 3.5 3.2
Manufacturing.................... -1.9 7.3 8.2 -.9 1.1 5.4 1.7 -1.1
Services-producing industries...... 10.2 21.4 26.9 -2.7 25.7 10.9 18.6 24.5
Trade, transportation, and
utilities....................... .9 9.7 5.2 -1.2 8.6 1.6 6.5 2.3
Other services-producing
industries...................... 9.4 11.7 21.6 -1.4 17.1 9.4 12.0 22.2
Government........................... 2.7 5.2 -3.2 1.2 2.6 2.9 2.2 2.0

Supplements to wages and salaries...... 8.6 4.6 5.8 3.4 5.4 5.3 5.3 4.6
Employer contributions for employee
pension and insurance funds......... 7.9 2.6 3.2 3.7 3.5 3.9 3.8 2.7
Employer contributions for government
social insurance.................... .8 1.9 2.6 -.4 1.9 1.5 1.5 1.8

Proprietors' income with inventory
valuation and capital consumption
adjustments............................. 13.5 10.0 7.7 8.2 -3.6 -.6 -6.5 17.4
Farm................................... -.3 .8 .7 .5 -4.3 -1.1 -1.1 2.0
Nonfarm................................ 13.8 9.3 6.9 7.7 .7 .5 -5.4 15.4

Rental income of persons with capital
consumption adjustment.................. -.8 .2 .8 .1 -2.5 -13.8 -22.8 26.8

Personal income receipts on assets....... 1.8 6.6 6.8 7.2 3.5 3.4 3.6 6.3
Personal interest income............... -1.4 3.4 3.5 3.4 .0 -.1 .0 2.6
Personal dividend income............... 3.2 3.1 3.5 3.7 3.5 3.5 3.6 3.6

Personal current transfer receipts....... 4.2 11.9 4.0 3.5 -11.7 23.2 18.5 -18.8
Government social benefits to persons.. 4.1 12.0 4.0 3.5 -11.7 9.7 4.5 8.8
Old-age, survivors, disability, and
health insurance benefits........... 2.7 5.4 2.0 -.1 3.4 4.3 4.6 4.7
Government unemployment insurance
benefits............................ -3.2 -3.0 -1.2 -.7 -.6 .6 -.1 -1.5
Other................................ 4.6 9.6 3.1 4.3 -14.3 4.6 .2 5.5
Other current transfer receipts, from
business (net)........................ .1 -.1 .0 .0 -.1 13.6 14.0 -27.6

Less: Contributions for government social
insurance............................... 1.9 4.2 5.4 -.2 4.2 3.2 3.3 4.1

Less: Personal current taxes............... 2.7 14.9 8.1 2.0 5.0 4.5 5.0 8.2

Equals: Disposable personal income......... 36.3 50.1 45.8 18.4 12.1 31.6 14.0 53.6

Less: Personal outlays..................... 27.7 13.8 84.2 -23.6 101.0 3.4 54.4 63.4

Personal consumption expenditures........ 30.2 10.6 81.5 -26.5 97.6 .4 51.4 61.2
Durable goods.......................... 6.3 -17.4 31.9 -41.1 57.2 -19.2 11.6 1.9
Nondurable goods....................... 25.6 -4.5 31.4 1.2 10.1 8.5 18.6 36.5
Services............................... -1.7 32.5 18.2 13.4 30.3 11.2 21.0 23.0
Personal interest payments\1\............ -3.0 2.2 2.3 2.3 2.5 2.4 2.5 1.5
Personal current transfer payments....... .5 .9 .5 .6 1.0 .5 .6 .5
To government.......................... .5 .5 .6 .5 .5 .6 .6 .5
To the rest of the world (net)......... .0 .4 .0 .0 .4 .0 .0 .0

Equals: Personal saving.................... 8.6 36.4 -38.5 42.0 -88.9 28.2 -40.4 -9.8

Addendum:
Real disposable personal income, billions
of chained (2000) dollars\2\............ 9.4 35.4 12.6 -1.9 14.5 28.3 6.7 17.4
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary.
r Revised. Revisions include changes to series affected by the introduction
of revised wage and salary estimates for the second quarter of 2004.
1. Consists of nonmortgage interest paid by households.
2. Equals disposable personal income deflated by the implicit price deflator
for personal consumption expenditures.

Table 4.--Personal Income and Its Disposition, Change from Preceding Period (Years and Quarters)

-----------------------------------------------------------------------------------------------------------------------------------
2002 2003 II 03 III 03 IV 03 I 04 II 04/r/ III 04/r/
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................ 154.8 282.9 103.5 103.6 120.7 115.0 147.7 79.0

Compensation of employees, received...... 127.4 219.5 69.3 77.7 82.0 81.2 92.1 77.6

Wage and salary disbursements.......... 33.5 127.3 50.0 55.3 60.3 50.3 73.6 62.7
Private industries................... -13.2 91.9 40.0 51.9 56.4 37.9 67.5 57.7
Goods-producing industries......... -34.1 -2.5 .2 6.1 19.8 -6.6 15.9 11.3
Manufacturing.................... -33.6 -6.4 -2.3 2.5 14.2 -10.2 10.6 7.4
Services-producing industries...... 20.9 94.5 39.9 45.7 36.7 44.6 51.5 46.4
Trade, transportation, and
utilities....................... -1.0 15.0 4.3 7.8 11.3 .4 13.8 12.7
Other services-producing
industries...................... 21.9 79.5 35.5 38.0 25.5 44.1 37.8 33.5
Government........................... 46.7 35.3 10.0 3.3 3.9 12.3 6.2 5.0

Supplements to wages and salaries...... 93.9 92.3 19.4 22.4 21.7 31.0 18.4 14.9
Employer contributions for employee
pension and insurance funds......... 86.9 79.3 16.3 18.9 18.0 20.6 13.9 10.9
Employer contributions for government
social insurance.................... 7.0 13.0 3.0 3.6 3.7 10.4 4.5 4.0

Proprietors' income with inventory
valuation and capital consumption
adjustments............................. -2.3 64.5 31.7 26.3 12.7 7.4 29.3 1.8
Farm................................... -10.0 12.1 10.3 .7 -.1 -6.8 1.0 -4.8
Nonfarm................................ 7.7 52.4 21.4 25.6 12.8 14.2 28.3 6.6

Rental income of persons with capital
consumption adjustment.................. 3.5 -17.1 -11.4 4.7 18.3 5.7 -.2 -19.0

Personal income receipts on assets....... -45.4 -11.9 -1.2 -10.3 11.4 11.3 15.2 14.1
Personal interest income............... -64.3 -16.8 .0 -9.6 9.2 4.2 5.5 3.3
Personal dividend income............... 18.9 4.9 -1.2 -.7 2.2 7.1 9.7 10.7

Personal current transfer receipts....... 88.8 52.7 21.7 13.1 4.5 28.3 21.4 13.6
Government social benefits to persons.. 105.0 57.5 21.9 13.3 4.6 27.6 21.5 .0
Old-age, survivors, disability, and
health insurance benefits........... 39.8 25.5 8.3 5.5 8.3 17.2 11.9 8.4
Government unemployment insurance
benefits............................ 21.5 -.4 4.4 -.5 -2.7 -10.2 -7.9 -1.1
Other................................ 43.8 32.3 9.3 8.2 -1.0 20.6 17.5 -7.3
Other current transfer receipts, from
business (net)........................ -16.3 -4.8 -.2 -.1 -.1 .5 .0 13.6

Less: Contributions for government social
insurance............................... 17.2 24.9 6.5 7.8 8.3 18.9 10.1 9.1

Less: Personal current taxes............... -186.1 -49.3 5.0 -89.0 67.7 -2.8 24.0 13.7

Equals: Disposable personal income......... 340.9 332.2 98.5 192.6 52.9 117.9 123.7 65.3

Less: Personal outlays..................... 314.0 380.8 85.9 124.9 101.6 142.2 97.1 133.7

Personal consumption expenditures........ 321.1 384.8 86.5 126.2 92.4 145.3 93.6 124.5
Durable goods.......................... 32.5 34.5 34.7 25.9 -1.6 5.2 -.8 31.5
Nondurable goods....................... 63.0 120.0 -3.9 55.6 30.9 66.5 38.0 33.1
Services............................... 225.5 230.3 55.7 44.7 63.0 73.7 56.5 59.8
Personal interest payments\1\............ -15.0 -11.9 -2.3 -1.5 2.6 -4.8 1.5 7.2
Personal current transfer payments....... 8.1 7.8 1.8 .3 6.5 1.7 1.9 2.1
To government.......................... 5.3 5.4 1.4 1.4 1.4 1.6 1.6 1.6
To the rest of the world (net)......... 2.7 2.5 .4 -1.1 5.1 .1 .4 .4

Equals: Personal saving.................... 26.9 -48.6 12.6 67.7 -48.7 -24.3 26.6 -68.4

Addendum:
Real disposable personal income, billions
of chained (2000) dollars\2\............ 226.2 174.3 79.9 151.8 26.7 47.4 54.5 38.6
-----------------------------------------------------------------------------------------------------------------------------------
r Revised. Revisions include changes to series affected by the introduction
of revised wage and salary estimates for the second quarter of 2004.
1. Consists of nonmortgage interest paid by households.
2. Equals disposable personal income deflated by the implicit price deflator
for personal consumption expenditures.

Table 5.--Personal Income and Its Disposition, Percent Change from Preceding Period (Months)

-----------------------------------------------------------------------------------------------------------------------------------
Mar 04 Apr 04/r/ May 04/r/ Jun 04/r/ Jul 04/r/ Aug 04/r/ Sep 04/r/ Oct 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................ .4 .7 .6 .2 .2 .4 .2 .6
Compensation of employees, received...... .3 .6 .6 .0 .5 .4 .4 .5
Wage and salary disbursements.......... .3 .7 .6 .0 .6 .4 .5 .5
Supplements to wages and salaries...... .7 .4 .5 .3 .4 .4 .4 .4
Proprietors' income with inventory
valuation and capital consumption
adjustments............................. 1.6 1.1 .9 .9 -.4 -.1 -.7 1.9
Rental income of persons with capital
consumption adjustment.................. -.4 .1 .5 .1 -1.5 -8.1 -14.6 20.0
Personal income receipts on assets....... .1 .5 .5 .5 .3 .3 .3 .5
Personal interest income............... -.2 .4 .4 .4 .0 .0 .0 .3
Personal dividend income............... .8 .8 .8 .9 .9 .8 .9 .9
Personal current transfer receipts....... .3 .9 .3 .2 -.8 1.7 1.3 -1.3

Less: Contributions for government social
insurance............................... .2 .5 .7 .0 .5 .4 .4 .5

Less: Personal current taxes............... .3 1.5 .8 .2 .5 .4 .5 .8

Equals: Disposable personal income......... .4 .6 .5 .2 .1 .4 .2 .6

Addenda:
Personal consumption expenditures........ .4 .1 1.0 -.3 1.2 .0 .6 .7
Durable goods.......................... .6 -1.8 3.3 -4.1 6.0 -1.9 1.2 .2
Nondurable goods....................... 1.1 -.2 1.3 .1 .4 .4 .8 1.5
Services............................... .0 .7 .4 .3 .6 .2 .4 .5

Real disposable personal income.......... .1 .4 .2 .0 .2 .4 .1 .2
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary.
r Revised. Revisions include changes to series affected by the introduction
of revised wage and salary estimates for the second quarter of 2004.

Table 6.--Personal Income and Its Disposition, Percent Change from Preceding Period (Years and Quarters)

-----------------------------------------------------------------------------------------------------------------------------------
2002 2003 II 03 III 03 IV 03 I 04 II 04/r/ III 04/r/
-----------------------------------------------------------------------------------------------------------------------------------
Personal income............................ 1.8 3.2 4.7 4.6 5.3 5.0 6.4 3.3
Compensation of employees, received...... 2.1 3.6 4.6 5.1 5.3 5.2 5.8 4.8
Wage and salary disbursements.......... .7 2.6 4.0 4.4 4.8 3.9 5.7 4.8
Supplements to wages and salaries...... 9.4 8.4 6.9 7.9 7.5 10.6 6.0 4.8
Proprietors' income with inventory
valuation and capital consumption
adjustments............................. -.3 8.4 16.9 13.4 6.1 3.5 14.1 .8
Rental income of persons with capital
consumption adjustment.................. 2.1 -10.0 -26.3 13.6 59.0 14.6 -.6 -37.2
Personal income receipts on assets....... -3.3 -.9 -.4 -3.1 3.5 3.5 4.6 4.2
Personal interest income............... -6.4 -1.8 .0 -4.1 4.1 1.8 2.4 1.4
Personal dividend income............... 5.1 1.3 -1.3 -.7 2.2 7.4 10.1 10.8
Personal current transfer receipts....... 7.4 4.1 6.8 4.0 1.3 8.6 6.4 3.9

Less: Contributions for government social
insurance............................... 2.3 3.3 3.4 4.1 4.3 10.0 5.1 4.5

Less: Personal current taxes............... -15.0 -4.7 2.0 -30.3 32.0 -1.1 9.9 5.4

Equals: Disposable personal income......... 4.6 4.2 5.0 9.9 2.6 5.8 6.0 3.1

Addenda:
Personal consumption expenditures........ 4.6 5.2 4.6 6.7 4.8 7.5 4.7 6.2
Durable goods.......................... 3.7 3.8 16.1 11.4 -.6 2.2 -.4 13.6
Nondurable goods....................... 3.1 5.8 -.7 10.7 5.7 12.3 6.7 5.8
Services............................... 5.4 5.3 5.0 4.0 5.6 6.4 4.8 5.0

Real disposable personal income.......... 3.1 2.3 4.3 8.2 1.4 2.4 2.8 2.0
-----------------------------------------------------------------------------------------------------------------------------------
r Revised. Revisions include changes to series affected by the introduction
of revised wage and salary estimates for the second quarter of 2004.

Table 7.--Real Personal Consumption Expenditures by Major Type of Product (Months)

-----------------------------------------------------------------------------------------------------------------------------------
Mar 04 Apr 04/r/ May 04/r/ Jun 04/r/ Jul 04/r/ Aug 04/r/ Sep 04/r/ Oct 04/p/
-----------------------------------------------------------------------------------------------------------------------------------

Billions of chained (2000) dollars
----------------------------------------------------------------------------------------
Personal consumption expenditures.......... 7,556.0 7,555.2 7,602.4 7,559.7 7,653.3 7,652.8 7,694.3 7,720.0
Durable goods............................ 1,084.8 1,065.8 1,101.2 1,057.1 1,124.6 1,109.0 1,121.0 1,121.7
Nondurable goods......................... 2,192.7 2,186.9 2,192.3 2,184.9 2,203.1 2,211.6 2,226.3 2,233.0
Services................................. 4,291.4 4,311.7 4,323.3 4,324.9 4,343.1 4,346.9 4,363.1 4,380.9
----------------------------------------------------------------------------------------
Change from preceding period in
billions of chained (2000) dollars
----------------------------------------------------------------------------------------
Personal consumption expenditures.......... 4.8 -.8 47.2 -42.7 93.6 -.5 41.5 25.7
Durable goods............................ 6.1 -19.0 35.4 -44.1 67.5 -15.6 12.0 .7
Nondurable goods......................... 7.2 -5.8 5.4 -7.4 18.2 8.5 14.7 6.7
Services................................. -7.3 20.3 11.6 1.6 18.2 3.8 16.2 17.8
----------------------------------------------------------------------------------------
Percent change from preceding period in
chained (2000) dollars at monthly rates
----------------------------------------------------------------------------------------
Personal consumption expenditures.......... .1 .0 .6 -.6 1.2 .0 .5 .3
Durable goods............................ .6 -1.8 3.3 -4.0 6.4 -1.4 1.1 .1
Nondurable goods......................... .3 -.3 .2 -.3 .8 .4 .7 .3
Services................................. -.2 .5 .3 .0 .4 .1 .4 .4
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary.
r Revised.

Table 8.--Real Personal Consumption Expenditures by Major Type of Product (Years and Quarters)

-----------------------------------------------------------------------------------------------------------------------------------
2002 2003 II 03 III 03 IV 03 I 04 II 04/r/ III 04/r/
-----------------------------------------------------------------------------------------------------------------------------------

Billions of chained (2000) dollars
----------------------------------------------------------------------------------------
Personal consumption expenditures.......... 7,123.4 7,355.6 7,311.4 7,401.7 7,466.8 7,543.0 7,572.4 7,666.8
Durable goods............................ 959.6 1,030.6 1,020.0 1,059.6 1,069.7 1,075.5 1,074.7 1,118.2
Nondurable goods......................... 2,037.4 2,112.4 2,090.1 2,125.3 2,152.0 2,187.3 2,188.0 2,213.7
Services................................. 4,128.6 4,220.3 4,207.7 4,227.9 4,256.7 4,291.7 4,320.0 4,351.0
----------------------------------------------------------------------------------------
Change from preceding period in
billions of chained (2000) dollars
----------------------------------------------------------------------------------------
Personal consumption expenditures.......... 213.0 232.2 69.2 90.3 65.1 76.2 29.4 94.4
Durable goods............................ 58.9 71.0 46.8 39.6 10.1 5.8 -.8 43.5
Nondurable goods......................... 50.7 75.0 8.1 35.2 26.7 35.3 .7 25.7
Services................................. 105.4 91.7 19.0 20.2 28.8 35.0 28.3 31.0
----------------------------------------------------------------------------------------
Percent change from preceding period in
chained (2000) dollars at annual rates
----------------------------------------------------------------------------------------
Personal consumption expenditures.......... 3.1 3.3 3.9 5.0 3.6 4.1 1.6 5.1
Durable goods............................ 6.5 7.4 20.6 16.5 3.9 2.2 -.3 17.2
Nondurable goods......................... 2.6 3.7 1.6 6.9 5.1 6.7 .1 4.8
Services................................. 2.6 2.2 1.8 1.9 2.8 3.3 2.7 2.9
-----------------------------------------------------------------------------------------------------------------------------------
r Revised.

Table 9.--Price Indexes for Personal Consumption Expenditures: Level and Percent Change From Preceding Period (Months)
-----------------------------------------------------------------------------------------------------------------------------------
Mar 04 Apr 04/r/ May 04/r/ Jun 04/r/ Jul 04/r/ Aug 04/r/ Sep 04/r/ Oct 04/p/
-----------------------------------------------------------------------------------------------------------------------------------

Chain-type price indexes (2000=100),
seasonally adjusted
----------------------------------------------------------------------------------------

Personal consumption expenditures
(PCE)..................................... 107.174 107.326 107.732 107.989 107.943 107.956 108.042 108.475
Durable goods............................ 90.788 90.778 90.753 90.645 90.291 89.827 89.904 90.017
Nondurable goods......................... 106.618 106.693 107.868 108.286 107.847 107.815 107.943 109.253
Services................................. 111.266 111.496 111.619 111.885 112.116 112.274 112.340 112.406
Addenda:
PCE excluding food and energy............ 106.291 106.435 106.508 106.625 106.662 106.668 106.781 106.922
Market-based PCE\1\...................... 106.675 106.862 107.339 107.676 107.625 107.655 107.719 108.232
Market-based PCE excluding food
and energy\1\........................... 105.484 105.671 105.768 105.955 106.002 106.029 106.122 106.304
----------------------------------------------------------------------------------------
Percent change from preceding period
in price indexes at monthly rates
----------------------------------------------------------------------------------------
PCE........................................ .3 .1 .4 .2 .0 .0 .1 .4
Durable goods............................ .1 .0 .0 -.1 -.4 -.5 .1 .1
Nondurable goods......................... .8 .1 1.1 .4 -.4 .0 .1 1.2
Services................................. .1 .2 .1 .2 .2 .1 .1 .1
Addenda:
PCE excluding food and energy............ .2 .1 .1 .1 .0 .0 .1 .1
Market-based PCE\1\...................... .3 .2 .4 .3 .0 .0 .1 .5
Market-based PCE excluding food
and energy\1\........................... .2 .2 .1 .2 .0 .0 .1 .2
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary.
r Revised.
1. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures. It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.

Table 10.--Real Disposable Personal Income and Real Personal Consumption Expenditures: Percent Change From Month One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------
Mar 04 Apr 04/r/ May 04/r/ Jun 04/r/ Jul 04/r/ Aug 04/r/ Sep 04/r/ Oct 04/p/
-----------------------------------------------------------------------------------------------------------------------------------
Disposable personal income................. 4.0 4.1 3.6 3.3 2.0 1.6 2.8 2.7

Personal consumption expenditures.......... 4.0 3.6 4.1 3.0 3.8 3.0 4.0 4.1
Durable goods............................ 9.4 5.0 8.0 3.2 7.9 3.1 5.7 7.6
Nondurable goods......................... 4.9 5.0 5.3 3.8 4.1 3.4 5.0 4.5
Services................................. 2.5 2.7 2.7 2.6 2.8 2.8 3.1 3.2
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary.
r Revised. Revisions include changes to series affected by the introduction
of revised wage and salary estimates for the second quarter of 2004.

Table 11.--Price Indexes for Personal Consumption Expenditures: Percent Change From Month One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------
Mar 04 Apr 04/r/ May 04/r/ Jun 04/r/ Jul 04/r/ Aug 04/r/ Sep 04/r/ Oct 04/r/
-----------------------------------------------------------------------------------------------------------------------------------
Personal consumption expenditures
(PCE)..................................... 1.7 2.0 2.4 2.5 2.4 2.1 2.0 2.4
Durable goods............................ -2.9 -2.7 -2.1 -1.9 -2.0 -2.2 -1.6 -1.1
Nondurable goods......................... 1.7 2.7 4.5 4.7 4.0 3.2 2.7 4.3
Services................................. 2.6 2.6 2.3 2.4 2.5 2.5 2.4 2.2
Addenda:
PCE excluding food and energy............ 1.5 1.6 1.5 1.5 1.4 1.4 1.5 1.5
Market-based PCE\1\...................... 1.5 2.0 2.5 2.7 2.5 2.2 2.0 2.6
Market-based PCE excluding food
and energy\1\........................... 1.4 1.5 1.4 1.6 1.4 1.4 1.4 1.5
-----------------------------------------------------------------------------------------------------------------------------------
p Preliminary.
r Revised.
1. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures. It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.




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[dArKeR]

1. Didn't I just read/see that European savings rate is 7%? I think Asian too

[papau]

2. yes - but huge gov deficits are negative savings - so no hope for US!

sigh...

:-)

[Wright Patman]

3. If you want to hear something hilarious

listen to a financial guru named Roger Arnold castigate the Europeans and Asians for saving too much.

http://www.kwaves.com

You can go to the right-hand side of this page and listen to archives of his show.

According to him, the U.S. is the only country which has got its act together because we consume all the world's excess goods. His spin is positively Orwellian. Those countries which are productive and make the goods and then demand payment are losers. We are the top dogs because we are the world champion consumers. So what if they have to lend us money to keep the cycle going.

The continent of Europe is "over," he constantly repeats. He hates Old Europe with a passion because of their social programs. He says it's turned them into slackers. They won't join the "race to the bottom" with the workers elsewhere in the world. They must "reform" or else.

His latest spiel is that he thinks Europe is about to experience an "epiphany" and join us in the crusade against Islam because of the recent murder of Theo Van Gogh. If so, I think he will modify his angry rhetoric and welcome the "slackers" into the coalition of the killing, but I don't see it happening myself.

As for which country is "over," usually it's the one which can't pay its bills. Yeah, and usually that country's fiat currency is eventually devalued into worthlessness.

[porkrind]

4. He probably hates Europe

because, by comparison, they make us look like the backward fascist banana republic we are. Rigged elections, poor health care, huge income disparity, rampant corruption, and poor education. That's us. :(

[AP]

5. And oil, drug & insurance co (but not retail) profits are way up? Hmm.

So where's that money coming from? Looks like out of cheap labor and people going into debt to buy over-priced shit.

[papau]

6. Credit card loan - and re-fi mortgage - are all that carries US economy

This is the worst "stimulus" that could have been designed for the deficit we are running.

[AP]

8. Republicans like bubbles, swings and debt. Democrats like jobs and middle

class wealth. No wonder most Americans percieve the Democrats being better on the economy than Republicans.

Republicans are down to war as the only issue they have, and they use it as an excuse to ruin everything else.

[cliss]

7. Thank you papau, for the info.

I'm also wondering about the savings rate of 0/2%. It may be high (I know, hard to believe). I believe it's less than this.

The problem for me is I see figures that change. It's kind of like a patch of quicksand. It moves, shifts. Hard to trust figures when they do that. :smoke:

[papau]

9. They are still adjusting 2nd qtr monthly data - your point is well taken

:-)

plus all of last years fake jobs growth - beginning before January 04 - needs an adjustment for the stay at home jobs they pretend exist (some actually do exist - but not in the numbers they claim - and indeed they somehow will not show up on the payroll tax - ever - and will not appear in the 04 tax returns filed in April 05).

[AP]

10. The thing about that number that I think is startling is that it is so

low even though there are so many people making so much money from lowered income tax burdens and increased corporate profits. Think of all the millionaires who do no additional work, but are getting 100s of thousands of dollars every year just from having their income taxes drop. Think of all the people who make money off of debt (banks, and credit card CEOs, and all the profits made off oil and off war -- think of all that wealth shifting to the top so rapidly). As people move so rapidly to the poles -- wealthy and poor -- it's amazing that that number is still close to zero.

There is so much wealth shifting to the top (if you're rich, your increase in income is dramatic) yet this savings rate number is dropping so close to zero. It must be that people all the way into the 50% quintile of income earners are actually going deeper and deeper into debt.

We're really reaching an equlibrium where the poorer you are the more wealth you're giving to someone who is really wealthy. America isn't one big boat where we all suffer or we all succeed (like it was in the 40s and 50s and 60s). It's a country where the success of a very few depends on the suffering of everyone else.

Another thing about that number: it dropped from .3 to .2 in the last month. That's a 33% drop in the savings rate nationwide. That's pretty significant.