Wages are still growing for US workers.
The employment cost index rose as expected in the fourth quarter, with wages increasing 0.6%.
Expectations were for the latest employment cost index to show an 0.6% in costs during the fourth quarter.
The ECI report is a more comprehensive measure of wage growth than the average hourly earnings figure released with the monthly jobs report as it takes into account benefits in addition to wages and salaries.
Employment costs rose 2% over the 12-month period ending in December, down from the 2.2% growth seen over the same period last year.
And so while last year the theme was that the ECI outperforming average hourly earnings showed wage growth in the US, the roles have reversed as average hourly earnings were up 2.4% over last year.
Or as Joe LaVorgna at Deutsche Bank said Friday, “Wage pressures remain non-existent.”