**MNI DATA IMPACT: US Q1 Employment Cost Index Up 0.7%>

--Wages Rise 0.7%, Benefits Up 0.7% 

By Harrison Clarke and Shikha Dave

     WASHINGTON (MNI) - The Employment Cost Index rose by 0.7% in the 

first quarter, as expected by a Bloomberg survey and just below the 0.8% 

gain expected by an MNI survey, and matching the 0.7% gain the fourth 

quarter, data released Tuesday by the Bureau of Labor Statistics showed. 

     At the same time, wage growth rose by 0.7% in the first quarter 

after a 0.6% rise in the fourth quarter. Benefits growth rose by 0.7% 

after posting a 0.7% gain in the fourth quarter. 

     Here are some of the key factors from the data release on Tuesday: 

     - While the quarter/quarter pace of growth accelerated in the most 

recent quarter, the year/year rate was up 2.8%, lower than the 2.9% rate 

in the previous quarter, suggesting slightly slower compensation growth.     

     - Along with the quarter/quarter acceleration, benefits were up 

2.6% year/year, a slower pace than the 2.8% year/year rate in fourth 

quarter, and matching than 2.6% year/year rate seen in the first quarter 

of 2018. The benefits year/year growth is continuing to trend upwards. 

     - The year/year pace for wages and salaries fell to 2.9%, slower 

than the 3.1% year/year pace seen in the fourth quarter but above the 

2.7% pace in the first quarter of 2018. 

     - Among the occupational groups, private industry workers 

compensation costs increased 2.8% year/year on gains for information 

workers, sales and office workers, leisure and hospitality workers, as 

well as gains in most other groups. 

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

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