Following is the text of the US personal income
and spending report for April released by the Commerce Department.

Personal income increased $46.1 billion, or 0.4 percent, and disposable
personal income (DPI) increased $35.1 billion, or 0.3 percent, in?April,
according to the Bureau of Economic Analysis. Personal consumption expenditures
(PCE) increased $41.5 billion, or 0.4 percent. In March, personal income
increased $54.6 billion, or 0.4 percent, DPI increased $46.3 billion, or 0.4
percent, and PCE increased $54.8 billion, or 0.5 percent, based on revised
estimates.

Real DPI decreased less than 0.1 percent in April, in contrast to an increase
of less than 0.1 percent in March. Real PCE increased 0.1 percent in April,
the same increase as in March.

2010 2011

Dec. Jan. Feb. Mar. Apr.

(Percent change from preceding month)
Personal income, current dollars 0.4 1.1 0.4 0.4 0.4
Disposable personal income:
Current dollars 0.4 0.4 0.3 0.4 0.3
Chained (2005) dollars 0.2 0.1 -0.1 0.0 0.0
Personal consumption expenditures:
Current dollars 0.4 0.4 0.8 0.5 0.4
Chained (2005) dollars 0.1 0.1 0.4 0.1 0.1

Wages and salaries

Private wage and salary disbursements increased $27.3 billion in April,
compared with an increase of $20.6 billion in March. Goods-producing
industries payrolls increased $6.3 billion, compared with an increase of $7.5
billion; manufacturing payrolls increased $0.8 billion, compared with an
increase of $6.6 billion. Services-producing industries payrolls increased
$20.9 billion, compared with an increase of $13.1 billion. Government wage and
salary disbursements increased $0.3 billion, compared with an increase of $1.3
billion.

Other personal income

Supplements to wages and salaries increased $4.2 billion in April, compared
with an increase of $4.3 billion in March.

Proprietors income increased $4.4 billion in April, compared with an increase
of $5.4 billion in March. Farm proprietors income decreased $2.1 billion, in
contrast to an increase of $0.2 billion. Nonfarm proprietors income increased
$6.5 billion, compared with an increase of $5.3 billion.

Rental income of persons increased $3.1 billion in April, compared with an
increase of $8.4 billion in March. Personal income receipts on assets (personal
interest income plus personal dividend income) increased $5.0 billion, in
contrast to a decrease of $2.1 billion. Personal current transfer receipts
increased $5.5 billion, compared with an increase of $20.1 billion.

Contributions for government social insurance — a subtraction in calculating
personal income — increased $3.8 billion in April, compared with an increase
of $3.3 billion in March.

Personal current taxes and disposable personal income

Personal current taxes increased $11.0 billion in April, compared with an
increase of $8.3 billion in March. Disposable personal income (DPI) — personal
income less personal current taxes — increased $35.1 billion, or 0.3 percent,
in April, compared with an increase of $46.3 billion, or 0.4 percent in March.

Personal outlays and personal saving

Personal outlays — PCE, personal interest payments, and personal current
transfer payments — increased $41.3 billion in April, compared with an
increase of $54.8 billion in March. PCE increased $41.5 billion, compared with
an increase of $54.8 billion.

Personal saving — DPI less personal outlays — was $570.6 billion in April,
compared with $576.7 billion in March. Personal saving as a percentage of
disposable personal income was 4.9 percent in April, the same as in March. For
a comparison of personal saving in BEAs national income and product accounts
with personal saving in the Federal Reserve Boards flow of funds accounts and
data on changes in net worth, go to http://www.bea.gov/national/nipaweb/Nipa-
Frb.asp.

Real DPI, real PCE and price index

Real DPI — DPI adjusted to remove price changes — decreased less than 0.1
percent in April, in contrast to an increase of less than 0.1 percent in March.

Real PCE — PCE adjusted to remove price changes — increased 0.1 percent in
April, the same increase as in March. Purchases of durable goods increased
less than 0.1 percent in April, in contrast to a decrease of 0.6 percent in
March. Purchases of nondurable goods increased less than 0.1 percent, in
contrast to a decrease of 0.2 percent. Purchases of services increased 0.1
percent, compared with an increase of 0.4 percent.

PCE price index — The price index for PCE increased 0.3 percent in April,
compared with an increase of 0.4 percent in March. The PCE price index,
excluding food and energy, increased 0.2 percent, compared with an increase of
0.1 percent.

Revisions

Estimates for personal income and DPI have been revised for October through
March; estimates for PCE have been revised for January through March. Changes
in personal income, current-dollar and chained (2005) dollar DPI, and current-
dollar and chained (2005) dollar PCE for February and March — revised and as
published in last months release — are shown below.

For October through December 2010, the revisions to wages and salaries reflect
the incorporation of newly available BLS tabulations of fourth-quarter private
wages and salaries from the quarterly census of employment and wages.

Change from preceding month
February
Previous Revised Previous Revised

(Billions of dollars) (Percent)
Personal Income:
Current dollars 53.1 47.8 0.4 0.4
Disposable personal income:
Current dollars 49.6 37.8 0.4 0.3
Chained (2005) dollars 1.3 -8.1 0.0 -0.1
Personal consumption expenditures:
Current dollars 94.4 80.2 0.9 0.8
Chained (2005) dollars 44.9 33.1 0.5 0.4

Change from preceding month
March
Previous Revised Previous Revised

(Billions of dollars) (Percent)
Personal Income:
Current dollars 67.0 54.6 0.5 0.4
Disposable personal income:
Current dollars 64.4 46.3 0.6 0.4
Chained (2005) dollars 15.4 1.4 0.1 0.0
Personal consumption expenditures:
Current dollars 60.7 54.8 0.6 0.5
Chained (2005) dollars 15.7 12.2 0.2 0.1

This news release presents revised estimates of wages and salaries, personal
taxes, and contributions for government social insurance for October through
December 2010 (fourth quarter). These estimates reflect newly available fourth-
quarter wage and salary tabulations from the quarterly census of employment and
wages from the Bureau of Labor Statistics.

Annual Revision of the National Income and Product Accounts

As part of the annual revision of the national income and product accounts
(NIPAs), revised estimates of personal income and outlays will be released
along with estimates for June 2011 on August 2. Personal income, disposable
personal income, and their components will be revised back to January 2008, and
PCE and personal saving will be revised back to January 2003. The August Survey
of Current Business will contain an article that describes the annual revision
in detail.

BEAÆs national, international, regional, and industry estimates; the Survey of
Current Business; and BEA news releases are available without charge on BEAÆs
Web site at www.bea.gov. By visiting the site, you can also subscribe to
receive free e-mail summaries of BEA releases and announcements.

Next release üEJune 27, 2011 at 8:30 AM
EDT for Personal Income and Outlays for May

SOURCE: US Commerce Department. http://www.bea.gov

To contact the reporter on this story: Alex Tanzi in Washington at
1959 or atanzi@bloomberg.net

To contact the editor responsible for this story: Marco Babic at mbabic@bloomberg.net