**MNI DATA IMPACT: US Q2 Employment Cost Index Slows 0.6%>

--Wages Unchanged 0.7%, Benefits Down 0.5% 

By Brooke Migdon and Alexandra Kelley

     WASHINGTON (MNI) - The Employment Cost Index slowed by 0.6% in the 

second quarter, below the expectations of Bloomberg and MNI forecasts, 

which had called for a 0.7% gain, data released Wednesday by the Bureau 

of Labor Statistics showed. 

     At the same time, wage growth held steady, increasing by 0.7% in 

the second quarter after posting an identical reading in the first 

quarter of 2019. Benefits growth faltered slightly from the previous 

quarter, rising by 0.5% after a 0.7% gain in March.  

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

Wednesday: 

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

recent quarter, the year/year rate also slowed to 2.7%, lower than the 

2.8% year/year rate in the previous quarter, suggesting slightly slower 

quarterly compensation growth.     

     - Along with the quarter/quarter deceleration, benefits slowed 2.3% 

year/year, a weaker pace than the 2.6% year/year rate in the first 

quarter, and significantly slower the 2.9% year/year rate seen in the 

second quarter of 2018. The benefits year/year growth is continuing to 

trend downwards. 

     - The year/year pace for wages and salaries increased by 2.9%, 

unchanged from the year/year pace set in the first quarter but slightly 

up from the 2.8% pace recorded in the second quarter of 2018. 

     - Among the occupational groups, private industry workers 

compensation costs rose 0.5% year/year on gains for service occupations, 

business and financial, and production workers, as well as gains in most 

other groups.  

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

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