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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.
US DATA
- Building on dovish implications from yesterday’s softer than expected employment cost growth, labor productivity was also stronger than expected as it increased 2.3% annualized (cons 1.8) in preliminary Q2 data.
- Revisions to productivity were marginal, up to 0.4% annualized in Q1 vs the initial 0.2%, in a quarter that still represented payback after a particularly strong 4.0% in 2H23.
- In broader trend terms, productivity growth remained robust at 2.7% Y/Y.
- The stronger than expected productivity growth saw unit labor costs come in more tepid than expected in Q2 at just 0.9% annualized (cons 1.7%).
- The quarterly ULC trend has been mixed of late, with 3.8% in Q1 after -2.8% in Q4, but year-ago growth of 0.5% Y/Y is clearly beneficial for cooling wage-related components of inflation.
- Recall Powell at yesterday’s FOMC press conference: Today's ECI reading was softer than expected. That's a good reading. It shows that wage increases are still at a strong level, but that that level continues to come down to more sustainable levels over time. That's exactly the pattern that we want to be seeing.”
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.
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