MNI ANALYSIS: 3Q ECI Rises +0.8%; Wages +0.9%, Benefits +0.4%>

By Harrison Clarke and Shikha Dave

     WASHINGTON (MNI) - The Employment Cost Index rose in the third 

quarter by 0.8% vs an expected 0.7% increase, above the 0.6% increase 

seen in the second quarter, data released by the Bureau of Labor 

Statistics Wednesday showed. 

     While the quarter/quarter pace of growth rose in the most recent 

quarter, the year-over-year rate remained at 2.8%, suggesting steady 

compensation growth.     

     Benefits growth decelerated this quarter with a 0.4% increase, 

following a 0.9% rise in the second quarter. Along with the 

deceleration, benefits were up 2.6% year/year, a lower pace than the 

2.9% year/year rate in second quarter, but a higher pace than the 2.4% 

year/year seen in the third quarter of 2017. The benefits year/year 

growth is continuing to trend upwards. 

     Wage and salary growth saw a rise to a 0.9% gain from a 0.5% gain 

in the second quarter. The year/year pace rose to 2.9%, higher than the 

2.5% year/year pace seen in the third quarter of 2017. 

     Among the occupational groups, private industry workers 

compensation costs increased 2.9% year/year on gains for sales and 

office workers and transportation workers, as well as smaller gains in 

all other groups. 

      ** MNI Washington Bureau: 202-371-2121 ** 

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