The following is the unedited transcript of the news release from the Bureau of Economic Analysis of the U.S. Commerce Department.




PERSONAL INCOME AND OUTLAYS: SEPTEMBER 2005

Personal income increased $173.5 billion, or 1.7 percent, and disposable personal income (DPI)increased $171.2 billion, or 1.9 percent, in September, according to the Bureau of EconomicAnalysis. Personal consumption expenditures (PCE) increased $44.1 billion, or 0.5 percent. In August, personal income decreased $94.9 billion, or 0.9 percent, DPI decreased $95.4 billion, or 1.1 percent, and PCE decreased $48.4 billion, or 0.5 percent, based on revised estimates.

The September and August estimates of personal income reflect the effects of Hurricanes Rita and Katrina, which hit the Gulf Coast of the United States. Rental income of persons and proprietors'' income together were reduced by about $5 billion (at an annual rate) in September and about $240 billion (at an annual rate) in August to reflect the uninsured losses of residential and business property. ""Other current transfer receipts from business (net)"" was boosted by about $7 billion (at an annual rate) in September and about $120 billion (at an annual rate) in August to reflect insurance benefits paid to persons. Excluding these effects, which are discussed more fully below, personal income increased $50.8 billion, or 0.5 percent in September, after increasing $26.0 billion, or 0.3 percent in August. Because other effects of the hurricanes were embedded in BEA''s source data and could not be separately identified, BEA did not attempt to quantify their impact.

Wages and salaries

Private wage and salary disbursements increased $11.6 billion in September, compared with an increase of $2.8 billion in August. Goods-producing industries'' payrolls decreased $0.8 billion, in contrast to an increase of $2.9 billion; manufacturing payrolls decreased $3.9 billion, in contrast to an increase of $1.1 billion. Services-producing industries'' payrolls increased $12.5 billion, in contrast to a decrease of $0.2 billion. Government wage and salary disbursements increased $5.1 billion, compared with an increase of $2.8 billion.

Other personal income

Supplements to wages and salaries increased $8.3 billion in September, compared with an increase of $7.0 billion in August.

Proprietors'' income increased $44.8 billion in September, following a decrease of $34.1 billion in August. Farm proprietors'' income increased $0.9 billion, in contrast to a decrease of $1.7 billion. Nonfarm proprietors'' income increased $43.9 billion, following a decrease of $32.4 billion. Nonfarm proprietors'' income was reduced $0.5 billion (at an annual rate) in September and $41.6 billion (at an annual rate) in August to reflect uninsured losses of business property from the impact of the hurricanes. (Proprietors'' income is reported net of such losses.)

Rental income of persons increased $192.9 billion in September, following a decrease of $202.2 billion in August. Rental income was reduced $4.8 billion in September (at an annual rate) and $199.6 billion in August (at an annual rate) to reflect uninsured losses of residential property from the impacts of the hurricanes.

Personal income receipts on assets (personal interest income plus personal dividend income) increased $6.3 billion in September, compared with an increase of $6.2 billion in August.

Personal current transfer receipts decreased $94.0 billion in September, in contrast to an increase of $122.7 billion in August. Personal current transfer receipts was boosted $7.1 billion (at an annual rate) in September and $120.3 billion (at an annual rate) in August to reflect increases in insurance benefits paid to persons for damage to insured property from the impact of the hurricanes.

Contributions for government social insurance -- a subtraction in calculating personal income increased $1.4 billion in September, compared with an increase of $0.2 billion in August.


Personal current taxes and disposable personal income

Personal current taxes increased $2.4 billion in September, compared an increase of $0.4 billion in August. Disposable personal income (DPI) -- personal income less personal current taxes -- increased $171.2 billion, or 1.9 percent, in September, in contrast to a decrease of $95.4 billion, or 1.1 percent, in August.

Personal outlays and personal saving