U.S Labor Costs Accelerate in Q1

U.S. labor costs recorded their biggest gain since 2007 in the first quarter, suggesting wage growth was picking up as the labor market nears full employment.

The Employment Cost Index, the broadest measure of labor costs, increased 0.8 percent, the largest increase since the fourth quarter of 2007, after rising 0.5 percent in the fourth quarter, the Labor Department said on Friday.

Economists polled by Reuters had forecast the ECI rising 0.6 percent in the last quarter. In the 12 months through March, labor costs increased 2.4 percent after rising 2.2 percent in the year to December.

U.S. Economy Expands at Slowest Pace in Three Years

Reuters

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell
Dean Popplewell

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