Thursday, October 16, 2014

WTI Signals Stronger Wage Growth by Early 2015



Arlington, Va. (Oct. 15, 2014) ­- The rate of annual pay increases for private sector workers is headed modestly higher in the coming months, according to the final third-quarter Wage Trend Indicator™ (WTI) released today by Bloomberg BNA, a leading publisher of specialized news and information.


The index rose to 99.22 from 99.13 in the second quarter, as revised. The WTI has climbed steadily since the fourth quarter of 2013.

“We've seen slow but steady gains in the labor market recently, and inflationary expectations have moved slightly higher,” said economist Kathryn Kobe, a consultant who maintains and helped develop Bloomberg BNA’s WTI database. Kobe said she expects annual pay increases to climb above 2.0 percent by early 2015, compared with a 1.9 percent gain in the second quarter reported by the Labor Department in its employment cost index.

Reflecting recent economic conditions, five of the WTI’s seven components contributed to the rise in the third-quarter index, while one factor was negative and another was neutral.

Source: BNA

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