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1Q ECI +0.8% vs +0.7 expected, up from in...>

US DATA
US DATA: 1Q ECI +0.8% vs +0.7 expected, up from +0.6% in 4Q and the 
fastest quarterly rate in a year. Both wages and benefits growth 
accelerated in the quarter. Annual revisions are included in the data.
- ECI +2.7% y/y in 1Q, up from +2.6% y/y in 4Q and sharply higher than 
+2.4% y/y in 1Q 2017.
-Headline ECI gain driven by private workers +1.0% vs +0.5% 4Q, offset 
by slower growth for state and local govt.
- Wages and salaries +0.9% vs +0.5% in previous quarter, lifting y/y 
growth to +2.7% from +2.5%.
- Benefits +0.7% vs +0.5% in 4Q. Benefits +2.6% y/y vs +2.5% y/y in 4Q.
- Overall, the data is likely to disturb inflation hawks, as it does 
suggest a new level for compensation inflation, albeit only slightly 
higher than it was through most of 2017.

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