Earnings Growth Stagnates; Low CPI Lifts....>

UK DATA: Earnings Growth Stagnates; Low CPI Lifts Real Wages

- UK Sept-Nov total earnings +3.2%, unchanged from Aug-Oct

- UK Sept-Nov ex-bonus earnings +3.4% vs +3.5% Aug-Oct

- UK Sept-Nov real total earnings +1.6% vs +1.5% Aug-Oct

- UK Sept-Nov real ex-bonus earnings +1.8%, unchanged from Aug-Oct

-----------------------------------------------------------------------

Robust job growth failed to lift real earnings in the 3 mos to Nov, with 

many of the newly-created jobs coming from self employment and in 

relatively-lower-paid administrative service jobs. However, declining 

infln could continue to support real earnings. Infln-adjusted earnings, 

incl bonuses, rose slightly in the 3 mos to Nov, and could increase 

further in Dec, with CPIH (the inflation measure used to discount 

earnings) falling to 1.4%, slightly above the 1.3% rate of CPI. The 

BOE's MPC acknowledged weakening pay growth at the Dec meet, attributing 

wage slow down to an unwind of temporary factors over the summer, 

specifically the "occupational mix of the work force" at the time.