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


Personal income increased $167.1 billion, or 1.4 percent, and disposable personal income (DPI) increased $178.1 billion, or 1.6 percent, in May, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $25.1 billion, or 0.3 percent. In April, personal income increased $78.3 billion, or 0.7 percent, DPI increased $140.0 billion, or 1.3 percent, and PCE increased $1.0 billion, or less than 0.1 percent, based on revised estimates. The pattern of changes in personal income and in DPI reflect, in part, the pattern of increased government social benefit payments associated with the American Recovery and Reinvestment Act of 2009.

Real DPI increased 1.6 percent in May, compared with an increase of 1.2 percent in April. Real PCE increased 0.2 percent, in contrast to a decrease of 0.1 percent in April.

The May change in DPI was boosted as a result of provisions of the American Recovery and Reinvestment Act of 2009. Provisions of the Act reduced personal current taxes and increased government social benefit payments. Excluding these special factors, which are discussed more fully below, DPI increased $20.6 billion, or 0.2 percent, in May, following an increase of $101.3 billion, or 0.9 percent, in April.

Wages and salaries

Private wage and salary disbursements decreased $12.4 billion in May, compared with a decrease of $0.7 billion in April. Goods-producing industries'' payrolls decreased $12.9 billion, compared with a decrease of $12.2 billion; manufacturing payrolls decreased $9.8 billion, compared with a decrease of $4.9 billion. Services-producing industries'' payrolls increased $0.5 billion, compared with an increase of $11.5 billion. Government wage and salary disbursements increased $3.9 billion, compared with an increase of $5.7 billion.

Other personal income

Supplements to wages and salaries increased $3.3 billion in May, compared with an increase of $3.9 billion in April.

Proprietors'' income increased $0.4 billion in May, compared with an increase of $3.1 billion in April. Farm proprietors'' income increased $0.6 billion, compared with an increase of $2.7 billion. Nonfarm proprietors'' income decreased $0.2 billion, in contrast to an increase of $0.5 billion.

Rental income of persons increased $5.2 billion in May, compared with an increase of $4.9 billion in April. Personal income receipts on assets (personal interest income plus personal dividend income) increased $2.5 billion, compared with an increase of $2.6 billion.

Personal current transfer receipts increased $162.6 billion in May, compared with an increase of $59.1 billion in April. The American Recovery and Reinvestment Act of 2009 provides for one-time payments of $250 to eligible individuals receiving social security, supplemental security income, veterans benefits, and railroad retirement benefits. These benefits boosted the level of personal current transfer receipts by $157.6 billions at an annual rate in May. These payments are classified in “other” personal current transfer receipts rather than in old-age, survivors, disability, and health insurance benefits because they are not benefits paid from the social security trust fund.

Contributions for government social insurance -- a subtraction in calculating personal income -- decreased $1.5 billion in May, in contrast to an increase of $0.2 billion in April.

Personal current taxes and disposable personal income

Personal current taxes decreased $11.1 billion in May, compared with a decrease of $61.6 billion in April. The Making Work Pay Credit provision of the American Recovery and Reinvestment Act of 2009 reduced personal current taxes by $49.8 billion at an annual rate in both May and April, and $11.2 billion in March. The provision allows a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns. (The credit is subject to income limitations.)

Disposable personal income (DPI) -- personal income less personal current taxes -- increased $178.1 billion, or 1.6 percent, in May, compared with an increase of $140.0 billion, or 1.3 percent in April.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments – increased $17.9 billion in May, in contrast to a decrease of $6.3 billion in April. PCE increased $25.1 billion, compared with an increase of $1.0 billion.

Personal saving -- DPI less personal outlays -- was $768.8 billion in May, compared with $608.5 billion in April. Personal saving as a percentage of disposable personal income was 6.9 percent in May, compared with 5.6 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 and real PCE