Personal income increased $51.7 billion, or 0.4%, and disposable personal income (DPI)increased $42.1 billion, or 0.4%, in June, according to the Bureau of Economic Analysis.Personal consumption expenditures (PCE) increased $11.1 billion, or 0.1 percent. In May, personal income increased $50.5 billion, or 0.4%, DPI increased $41.1 billion, or 0.4%, and PCE increased $62.5 billion, or 0.6%, based on revised estimates.

Wages and salaries

Private wage and salary disbursements increased $29.1 billion in June, compared with an increase of $23.4 billion in May. Goods-producing industries'' payrolls increased $5.1 billion, compared with an increase of $4.7 billion; manufacturing payrolls increased $3.5 billion, compared
with an increase of $0.9 billion. Services-producing industries'' payrolls increased $23.9 billion,compared with an increase of $18.8 billion. Government wage and salary disbursements increased
$4.7 billion, compared with an increase of $3.7 billion.

Other personal income

Supplements to wages and salaries increased $5.7 billion in June, compared with an increase of $5.3 billion in May.Proprietors'' income increased $3.8 billion in June, compared with an increase of $2.7 billion in May. Farm proprietors'' income decreased $0.9 billion, compared with a decrease of $2.4 billion.Nonfarm proprietors'' income increased $4.7 billion, compared with an increase of $5.0 billion.

Rental income of persons increased $3.0 billion in June, compared with an increase of $1.5 billion in May. Personal income receipts on assets (personal interest income plus personal dividend income) increased $8.8 billion, compared with an increase of $9.1 billion. Personal current transfer receipts increased $0.6 billion in June, compared with an increase of $8.2 billion in May.

Contributions for government social insurance -- a subtraction in calculating personal income -increased $4.2 billion in June, compared with an increase of $3.3 billion in May.

Personal current taxes and disposable personal income

Personal current taxes increased $9.7 billion in June, compared with an increase $9.3 billion in May. Disposable personal income (DPI) -- personal income less personal current taxes - increased $42.1 billion, or 0.4 percent, in June, compared with an increase of $41.1 billion, or 0.4 percent, in May.

Personal outlays and personal saving

Personal outlays -- PCE, personal interest payments, and personal current transfer payments increased $16.4 billion in June, compared with an increase of $67.9 billion in May. PCE increased $11.1 billion, compared with an increase of $62.5 billion.

Personal saving -- DPI less personal outlays -- was $64.0 billion in June, compared with $38.5 billion in May. Personal saving as a percentage of disposable personal income was 0.6 percent in
June, compared with 0.4 percent in May. 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 0.3 percent in June, in contrast to a decrease of 0.1 percent in May.

Real PCE -- PCE adjusted to remove price changes -- decreased less than 0.1 percent in June,in contrast to an increase of 0.2 percent in May. Purchases of durable goods decreased 1.6 percent,in contrast to an increase of 1.7 percent. Purchases of motor vehicles and parts accounted for about half of the decrease in June. Purchases of nondurable goods increased less than 0.1 percent in June,compared with an increase of 0.2 percent in May. Purchases of services increased 0.2 percent, in
contrast to a decrease of 0.1 percent.

PCE price index -- The PCE price index increased 0.1 percent in June, compared with an increase of 0.5 percent in May. The PCE price index, excluding food and energy, increased 0.1 percent in June, the same increase as in May.

Revision of the Personal Income and Outlays Estimates

Personal income, personal outlays, DPI, and personal saving are revised, beginning with January 2004 to reflect the results of the annual revision in the national income and product accounts (NIPAs) released last week. The NIPAs usually are revised each July to incorporate newly available
and more comprehensive source data, as well as improved estimating methodologies.

Personal income was revised down $4.2 billion, or less than 0.1 percent, for 2004; was revised up $61.9 billion, or 0.6 percent, for 2005; and was revised up $92.2 billion, or 0.8 percent,for 2006. For 2004, a downward revision to rental income of persons was partly offset by an
upward revision to compensation of employees. For 2005, large upward revisions to personal interest income and to personal dividend income were partly offset by a large downward revision to rental income of persons. For 2006, large upward revisions to personal interest income and to personal dividend income were partly offset by downward revisions to compensation of employees, to rental income of persons, and to proprietors'' income. Within compensation of employees,
supplements to wages and salaries accounted for most of the downward revision, although wage and salary disbursements was also revised down. In addition, contributions for government social insurance, which are subtracted in the calculation of personal income, was revised down.

Disposable personal income (DPI) was revised down $0.7 billion, or less than 0.1 percent, for 2004; was revised up $55.9 billion, or 0.6 percent, for 2005; and was revised up $100.0 billion, or 1.0 percent, for 2006. The revisions were roughly similar to those to personal income, reflecting
small revisions to personal current taxes. Personal current taxes was revised down $3.5 billion for 2004; was revised up $6.0 billion for 2005, and was revised down $7.8 billion for 2006. The percent change from the preceding year in real DPI was unrevised at 3.6 percent for 2004, was revised up from 1.2 percent to 1.7 percent for 2005, and was revised up from 2.6 percent to 3.1 percent for 2006.