International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Sunday, June 3, 2018

PERSONAL INCOME AND OUTLAYS, APRIL 2018

Personal income increased $49.5 billion (0.3 percent) in April according to estimates released today by
the Bureau of Economic Analysis. Disposable personal income (DPI) increased $60.9 billion (0.4 percent)
and personal consumption expenditures (PCE) increased $79.8 billion (0.6 percent).

Real DPI increased 0.2 percent in April and Real PCE increased 0.4 percent. The PCE price index increased
0.2 percent. Excluding food and energy, the PCE price index increased 0.2 percent.

                                                2017                  2018
                                                Dec.     Jan.     Feb.     Mar.     Apr.
                                                  Percent change from preceding month
Personal income:
 Current dollars                                0.4      0.4      0.3      0.2      0.3
Disposable personal income:
 Current dollars                                0.4      0.8      0.3      0.2      0.4
 Chained (2009) dollars                         0.3      0.4      0.1      0.2      0.2
Personal consumption expenditures (PCE):
 Current dollars                                0.5      0.1      0.0      0.5      0.6
 Chained (2009) dollars                         0.3     -0.2     -0.1      0.5      0.4
Price indexes:
 PCE                                            0.1      0.4      0.1      0.0      0.2
 PCE, excluding food and energy                 0.2      0.3      0.2      0.2      0.2

Price indexes:                                  Percent change from month one year ago
 PCE                                            1.7      1.6      1.7      2.0      2.0
 PCE, excluding food and energy                 1.5      1.5      1.5      1.8      1.8


BOX.__________________________________________
                Quarterly Census of Employment and Wage Data Included in the Fourth Quarter of 2017

This news release includes revised estimates of wages and salaries, personal taxes, and contributions for
government social insurance for October through December 2017 (fourth quarter). These estimates reflect the
incorporation of newly available fourth-quarter wage and salary tabulations from the Bureau of Labor Statistics’
Quarterly Census of Employment and Wages (QCEW) program.
______________________________________________

The increase in personal income in April primarily reflected increases in wages and salaries, in personal
interest income, and in government social benefit payments to persons, specifically veteran’s benefits and Medicare (table 3).

The $42.8 billion increase in real PCE in April reflected an increase of $15.4 billion in spending for goods
and a $27.5 billion increase in spending for services (table 7). Within goods, spending for gasoline and other
energy goods was a leading contributor to the increase. Within services, the largest contributor to the increase
was spending for household utilities. Detailed information on monthly real PCE spending can be found in Table 2.3.6U.

Personal outlays increased $86.9 billion in April (table 3). Personal saving was $419.6 billion in April and the personal
saving rate, personal saving as a percentage of disposable personal income, was 2.8 percent (table 1).

Updates to Personal Income and Outlays

Estimates have been revised for October through March. The percent change from the preceding month for current-dollar personal
income, and for current-dollar and chained (2009) dollar DPI and PCE -- revised and as published in last month's release -- are
shown below.

                                                        Change from preceding month
                                               February                                    March
                                Previous   Revised   Previous   Revised   Previous   Revised   Previous   Revised
                               (Billions of dollars)      (Percent)      (Billions of dollars)      (Percent)
Personal income:
 Current dollars                    57.1      54.1        0.3       0.3       47.8      40.7        0.3       0.2
Disposable personal income:
 Current dollars                    42.6      41.9        0.3       0.3       39.8      34.0        0.3       0.2
 Chained (2009) dollars             15.9      18.5        0.1       0.1       30.5      25.3        0.2       0.2
Personal consumption expenditures:
 Current dollars                     1.6       5.9        0.0       0.0       61.7      73.9        0.4       0.5
 Chained (2009) dollars            -18.6     -11.8       -0.2      -0.1       50.0      60.5        0.4       0.5

BOX.__________________________________________
                                Upcoming Annual Update of the National Income and Product Accounts

BEA will release the results of the 15th comprehensive (or benchmark) update of the national income and product accounts (NIPAs)
in conjunction with the second quarter 2018 "advance" estimate on July 27, 2018.  For more information, see the Technical Note.
Details on the planned statistical, definitional, and presentational changes are available in the April Survey of Current Business
article "Preview of the 2018 Comprehensive Update of the National Income and Product Accounts." An article in the September Survey
will describe the estimates in detail.  Revised NIPA table stubs and news release stubs will be available in June.

http://lawprofessors.typepad.com/intfinlaw/2018/06/personal-income-and-outlays-april-2018.html

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