The following is the un-edited press release from the U.S. Bureau of Economic Analysis.

PERSONAL INCOME AND OUTLAYS: JULY 2005

Personal income increased $29.3 billion, or 0.3 percent, and disposable personal income (DPI)increased $27.2 billion, or 0.3 percent, in July, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $85.7 billion, or 1.0 percent. In June, personal income increased $54.7 billion, or 0.5 percent, DPI increased $45.9 billion, or 0.5 percent, and PCE increased $88.0 billion, or 1.0 percent, based on revised estimates.



This news release also presents revised estimates of wages and salaries, personal taxes, and contributions for government social insurance for January through March 2005 (first quarter). These estimates reflect newly available first-quarter wage and salary tabulations from the quarterly census of employment and wages from the Bureau of Labor Statistics.

Wages and salaries

Private wage and salary disbursements increased $29.4 billion in July, compared with an increase of $17.9 billion in June. Goods-producing industries' payrolls increased $6.0 billion,compared with an increase of $1.9 billion; manufacturing payrolls increased $3.7 billion, in contrast to a decrease of $0.1 billion. Services-producing industries' payrolls increased $23.5 billion, compared with an increase of $15.9 billion. Government wage and salary disbursements increased $1.9 billion, compared with an increase of $0.8 billion.

Other personal income

Supplements to wages and salaries increased $4.7 billion in July, compared with an increase of $4.1 billion in June.

Proprietors' income decreased $3.5 billion in July, in contrast to an increase of $14.7 billion in June. Farm proprietors' income decreased $0.5 billion, compared with a decrease of $0.8 billion. Nonfarm proprietors' income decreased $3.0 billion, in contrast to an increase of $15.5 billion.

Rental income of persons decreased $3.3 billion in July, compared with a decrease of $4.3 billion in June. Personal income receipts on assets (personal interest income plus personal dividend income) increased $7.8 billion, compared with an increase of $18.0 billion. Personal current transfer receipts decreased $4.2 billion, in contrast to an increase of $5.6 billion.

Contributions for government social insurance -- a subtraction in calculating personal income -- increased $3.6 billion in July, compared with an increase of $2.1 billion in June.

Personal current taxes and disposable personal income

Personal current taxes increased $2.1 billion in July, compared with an increase of $8.8 billion in June. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $27.2 billion, or 0.3 percent, in July, compared with an increase of $45.9 billion, or 0.5 percent, in June.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments increased $86.8 billion in July, compared with an increase of $92.8 billion in June. PCE increased $85.7 billion, compared with an increase of $88.0 billion.

Personal saving -- DPI less personal outlays -- was a negative $58.8 billion in July, in contrast to a positive $0.9 billion in June. Personal saving as a percentage of disposable personal income was a negative 0.6 percent in July, compared with 0 percent in June. Negative personal saving
reflects personal outlays that exceed disposable personal income. 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. For more information, see the FAQs on ""Personal Saving"" on BEA's Web site.

Real DPI and real PCE

Real DPI -- DPI adjusted to remove price changes -- increased less than 0.1 percent in July, compared with an increase of 0.5 percent in June.

Real PCE -- PCE adjusted to remove price changes -- increased 0.7 percent in July, compared with an increase of 1.0 percent in June. Purchases of durable goods increased 5.2 percent, compared with an increase of 4.6 percent. Purchases of motor vehicles and parts accounted for most of the increases in July and in June. Purchases of nondurable goods decreased 0.1 percent in July, in contrast to an increase of 1.0 percent in June. Purchases of services increased 0.2 percent, compared with an increase of 0.4 percent.

Revisions