Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real wages in the UK fell again in May, as pay deals and bonus payments failed to keep pace with soaring inflation, data released by the Office for National statistics showed, dipping even very slightly below analysts' expectations..
Total average earnings rose 6.2% y/y in the three months to May, driven in large part by bonus payments, while pay deals excluding bonuses rose by 4.3% y/y. However, when adjusted for inflation, real wages fell 0.9% y/y and by 2.9% excluding bonuses. Excluding bonuses, "real pay is now dropping faster than at any time since records began in 2001,” according to David Freeman, head of labour market and household statistics at the ONS said.
The jobs and wages data remains key to the Bank of England's reading of the UK economy and the latest data will offer mixed signals, but probably doesn't add further fuel to the need for a 50 bps rate hike at the August meeting.
“Following recent increases in inflation, pay is now clearly falling in real terms both including and excluding bonuses. Excluding bonuses, real pay is now dropping faster than at any time since records began in 2001.”
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.