10/31/2023

Q3 U.S. Labor Costs Growth Beat Expectations

The Employment Cost Index rose 1.1 percent last quarter

U.S. labor costs increased solidly in the third quarter amid strong wage growth, the latest indication that the Federal Reserve could keep interest rates higher for some time.

The Employment Cost Index, the broadest measure of labor costs, rose 1.1 percent last quarter after increasing 1.0 percent in the April-June period, the Labor Department said on Tuesday.

Economists polled by Reuters had forecast the ECI rising 1.0 percent. Labor costs increased 4.3 percent on a year-on-year basis after advancing 4.5 percent in the second quarter. The report followed on the heels of news last week that the economy grew at its fastest pace in nearly two years in the third quarter.

Please select this link to read the complete article from Reuters.