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

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.