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Employment Cost Index

All articles tagged with #employment cost index

economy2 years ago

US Wage Growth Moderates, But Still Outpaces Expectations

The Employment Cost Index, a measure of pay and benefits closely watched by Federal Reserve officials, grew at a moderate pace of 1.1% in the third quarter of 2023, slightly faster than expected. While this marks a deceleration from rapid gains in 2022, wage growth remains strong compared to pre-pandemic levels. The trend presents a challenge for the Federal Reserve as rapid wage gains can fuel inflation. However, economists expect the Fed to hold interest rates steady as they wait for the labor market to continue normalizing. The labor market's cool-down has been bumpy, with job gains slowing but remaining faster than expected. If pay growth continues to calm while job gains remain solid, it would suggest an improving supply of applicants and a slowly balancing labor market.

via The New York Times|
#economy#employment-cost-index#federal-reserve
economy2 years ago

"The Unpredictable Economic Landscape: Recession Speculations Persist Amidst Market Rally"

While the Federal Reserve's discussions on the economy, inflation, and interest rates are anticipated this week, the release of the employment cost index (ECI) on Friday is expected to be the most significant development for markets. The ECI, a highly regarded wage measurement, is projected to tick slightly slower in the second quarter, but still represents a year-over-year rise that may not align with the Fed's 2% inflation target. Concerns arise over the potential for a wage-price spiral if labor strikes and expensive contract settlements lead to a rebound in wage inflation. The ECI report will also shed light on union compensation, which has been falling behind nonunion compensation. Additionally, the quits rate from the JOLTS report, which is currently declining, tends to lead the wage and salaries series of the ECI.

via MarketWatch|
#economy#employment-cost-index#federal-reserve
business2 years ago

Fed Decision and Wage Gains Highlight First Week of May.

Worker pay and benefit gains firmed during the first quarter of the year, with employers spending 1.2% more on wages and benefits last quarter versus the prior three months, according to the Labor Department. This is a slight uptick from an upwardly revised 1.1% increase in the fourth quarter of 2022. The employment-cost index advanced 4.8% from a year earlier, an easing from the 5.1% gain at the end of last year.

via The Wall Street Journal|
#benefits#business#employment-cost-index
business2 years ago

US Inflation Remains Steady Despite Economic Slowdown

The personal consumption expenditures price index excluding food and energy increased 0.3% in March, in line with expectations, while the employment cost index increased 1.2% for the first quarter, higher than the estimate. Despite a year's worth of interest rate increases, inflation rose again in March, with the core PCE increasing 4.6% annually, slightly higher than expected.

via CNBC|
#business#employment-cost-index#federal-reserve
finance2 years ago

Stock Market Predictions for April 24-28, 2023: Earnings and PCE in Focus

The upcoming release of GDP figures, PCE, and employment cost index data will provide insight into the state of the economy. Real GDP is expected to increase by 2% in the first quarter, while the GDP price index is expected to be at 3.7%. The March PCE is anticipated to rise by 0.1% to 4.1% year-over-year, indicating that inflation is still an issue. The Employment cost index is expected to rise to 1.1% from 1.0% in the fourth quarter. The TLT and TIP ETFs are at risk of dropping, potentially hurting the QQQ ETF and the S&P 500. Intel, Microsoft, Roku, and Visa are set to report their results this week.

via Monster Stock Market Commentary|
#employment-cost-index#finance#gdp