June Personal Income

Personal income increased $6.8 billion, or 0.1 percent, and disposable personal income (DPI)decreased $210.3 billion, or 1.9 percent, in June, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $57.1 billion, or 0.6 percent. In May, personalincome increased $219.3 billion, or 1.8 percent, DPI increased $595.4 billion, or 5.7 percent, and PCE increased $76.5 billion, or 0.8 percent, based on revised estimates. The pattern of changes in income reflect the pattern of payments associated with the Economic Stimulus Act of 2008. Real disposable income decreased 2.6 percent in June, in contrast to an increase of 5.2 percent in May. Real PCE decreased 0.2 percent, in contrast to an increase of 0.3 percent.

In April, May, and June, changes in disposable personal income (DPI) -- personal income less personal current taxes -- were affected by the Economic Stimulus Act of 2008. The federal government issued rebate payments of $1.9 billion in April ($23.3 billion at an annual rate), $48.1billion in May ($577.1 billion at an annual rate), and $27.9 billion in June ($334.4 billion at anannual rate). These rebates increased government social benefit payments and reduced personal current taxes. The rebates boosted the change in DPI $23.3 billion in April and $553.8 billion in May, and reduced the change in DPI $242.7 billion in June. Excluding these rebate payments, which are discussed more fully below, DPI increased $32.4 billion, or 0.3 percent, in June, after increasing $41.7 billion, or 0.4 percent, in May.