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.
The Employment Cost Index, the broadest measure of U.S. labor costs, rose 0.9% last quarter, a tenth below expectations and down from 1.2% in the January-March period, the Labor Department said on Wednesday. The year-on-year rate fell to 4.1% from 4.2% in the previous quarter and 4.5% a year ago.
The ECI is widely viewed by policymakers and economists as one of the better measures of labor market slack and a predictor of core inflation. Fed Chair Jerome Powell and his colleagues were looking for a deceleration in the employment cost index and are looking for nominal wages to cool to around 3.5%. The latest figures provide some relief that things are moving in the right direction. (See: MNI INTERVIEW: Worries Over US Jobs Weakness Overdone- Bullard)
Wages and salaries increased 0.9% last quarter, down from 1.1% in the last quarter, and eased two tenths to 4.2% year-on-year. Private sector compensation rose 0.9%, down from 1.1% in the first quarter. Private industry wages rose 4.1% year-on-year after, down from 4.6% a year ago. For all workers excluding incentive-paid occupations the growth rate over the year slipped to 4.1% from 4.2% the previous quarter.
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.