The following is the unedited transcript of the news release from the Bureau of Economic Analysis.


Personal income increased $24.5 billion, or 0.2 percent, and disposable personal income (DPI) increased $25.7 billion, or 0.2 percent, in September, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) decreased $33.6 billion, or 0.3 percent. In August, personal income increased $44.8 billion, or 0.4 percent, DPI decreased $107.7 billion, or 1.0 percent, and PCE increased $4.5 billion, or less than 0.1 percent, based on revised estimates. Excluding the rebate payments under the Economic Stimulus Act of 2008, DPI increased $30.3 billion, or 0.3 percent in September, and increased $44.0 billion, or 0.4 percent in August.

Real DPI increased 0.1 percent in September, in contrast to a decrease of 1.0 percent in August. Real PCE decreased 0.4 percent, in contrast to an increase of less than 0.1 percent.

The September estimate of personal income reflects the effects of Hurricane Ike, which struck the Gulf Coast region, especially impacting coastal Texas and Louisiana, on September 13, 2008. Rental income of persons was reduced by about $27 billion (at an annual rate) and proprietors'' income was reduced by about $9 billion (at an annual rate) to reflect uninsured losses of residential and business property. """"Other current transfer receipts from business (net)"""" was boosted by about $27 billion (at an annual rate) to reflect insurance benefits paid to persons. The net effect of these adjustments was to lower September personal income $8.5 billion.

Wages and salaries

Private wage and salary disbursements increased $0.3 billion in September, compared with an increase of $24.1 billion in August. Goods-producing industries'' payrolls decreased $4.0 billion, in contrast to an increase of $5.1 billion; manufacturing payrolls decreased $2.6 billion, compared with a decrease of $1.3 billion. Services-producing industries'' payrolls increased $4.3 billion, compared with an increase of $19.0 billion. Government wage and salary disbursements increased $4.0 billion, compared with an increase of $4.6 billion.

Other personal income

Supplements to wages and salaries increased $1.2 billion in September, compared with an increase of $3.1 billion in August.

Proprietors'' income decreased $3.4 billion in September, compared with a decrease of $10.8 billion in August. Farm proprietors'' income decreased $3.5 billion, compared with a decrease of $3.3 billion. Nonfarm proprietors'' income increased $0.1 billion, in contrast to a decrease of $7.5 billion. Nonfarm proprietors'' income was reduced $8.8 billion (at an annual rate) in September to reflect uninsured losses of business property from the impact of Hurricane Ike. (Proprietors'' income is reported net of such losses.)

Rental income of persons decreased $24.0 billion in September, in contrast to an increase of $2.4 billion in August. Rental income was reduced $26.6 billion (at an annual rate) in September to reflect uninsured losses of residential property from the impacts of the hurricane.

Personal income receipts on assets (personal interest income plus personal dividend income) increased $9.1 billion in September, compared with an increase of $8.9 billion in August. Personal current transfer receipts increased $37.3 billion in September, compared with an increase of $15.6 billion in August. Personal current transfer receipts was boosted $26.9 billion (at an annual rate) in September to reflect increases in insurance benefits paid to persons for damage to insured property from the impact of Hurricane Ike. The September and August changes reflected provisions of the Supplemental Appropriations Act of 2008, which provided up to 13 weeks of additional unemployment compensation benefits to those who exhausted their regular unemployment benefits. The additional unemployment benefits boosted the level of personal current transfer receipts by $19.2 billion in September, by $17.6 billion in August, and by $4.3 billion in July. The September and August changes also reflected provisions of the Economic Stimulus Act of 2008, which boosted the level of personal current transfer receipts by $3.9 billion (at an annual rate) in September, by $5.1 billion in August, and by $4.2 billion in July.

Contributions for government social insurance -- a subtraction in calculating personal income -- decreased $0.1 billion in September, in contrast to an increase of $3.2 billion in August.

Personal current taxes and disposable personal income

Personal current taxes decreased $1.1 billion in September, in contrast to an increase of $152.4 billion in August. Provisions of the Economic Stimulus Act reduced the level of personal taxes by $3.9 billion (at an annual rate) in September, by $7.3 billion in August, and by $159.9 billion in July. The reduction in current personal taxes reflected rebate payments to eligible individual taxpayers. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $25.7 billion, or 0.2 percent, in September, in contrast to a decrease of $107.7 billion, or 1.0 percent, in August.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments decreased $32.0 billion in September, in contrast to an increase of $6.0 billion in August. PCE decreased $33.6 billion, in contrast to an increase of $4.5 billion.

Personal saving -- DPI less personal outlays -- was $140.3 billion in September, compared with $82.5 billion in August. Personal saving as a percentage of disposable personal income was 1.3 percent in September, compared with 0.8 percent in August. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods.

Real DPI and real PCE

Real DPI -- DPI adjusted to remove price changes -- increased 0.1 percent in September, in contrast to a decrease of 1.0 percent in August. Excluding the rebate payments under the Economic Stimulus Act of 2008, which increased government social benefit payments and reduced personal current taxes, real DPI increased 0.2 percent in September, and increased 0.4 percent in August.