- Russia: Currency Interventions (Jul), Mortgage Loans (Jun); Kazakhstan: CPI, PPI (Jul); Hungary: PMI (Jul), Import\Export Prices (May); Romania: Public Finance (Jun)
- Sweden: PMI (Jul); Norway: Interest Rates (Jul)
- Euro area: Economic Policy Uncertainty Index (Jul)
- Markit PMI: Manufacturing Survey - Japan, Korea, China, Taiwan, Vietnam, Malaysia, Indonesia, India, Russia, Turkey, Poland, Netherlands (Jul)
- Japan: TSE Market Capitalization (Jul), Motor Vehicle Sales Press (Jul)
- more updates...
Economy in Brief
Chicago Purchasing Managers Index Signals Expansion
Chicago purchasing managers reported that their July Business Barometer Index improved to 54.7 following an unrevised rise to 49.4 in June...
EMU Unemployment Is Unchanged
The EU unemployment rate is unchanged in June at 9.6%...
U.S. GDP Growth Improves; Consumer Leads the Advance
The Commerce Department estimated that overall economic growth accelerated to 2.3% last quarter (SAAR) versus a 0.6% Q1 increase...
U.S. Initial Claims for Jobless Insurance Rise from 1973 Low
Initial claims for unemployment insurance rose to 267,000 (-10.6% y/y) during the week ended July 25...
U.S. Merchandise Trade Deficit Deepens
The U.S. foreign trade deficit in goods during June deteriorated to $62.3 billion from $60.4 billion in May...
EU Commission Indices Show Strength in July
The overall index for the EU moved to 106.6 in July from 105.5 in June...
by Tom Moeller July 31, 2015
The employment cost index for civilian workers improved 0.2% in Q2'15 (2.0% y/y), following an unrevised 0.7% Q1 rise. This Q2 performance was the weakest on record and the number fell short of expectations for a 0.6% rise according to the Action Economics Forecast Survey. The ECI for private industry workers remained unchanged (1.9% y/y) following a 0.7% increase. This also was record quarterly weakness.
There was considerable variation in compensation among industry groups in Q2. A 3.6% decline (-2.0% y/y) in information services and a 1.2% shortfall (+1.4% y/y) in professional and business services led the weakness in compensation. Elsewhere, compensation continued to rise at a moderate pace. Manufacturing compensation increased 0.7% (2.5% y/y) and construction workers' compensation also rose 0.7% (2.1% y/y). Leisure & hospitality workers compensation rose 0.6% (2.4% y/y) and financial activities compensation improved 0.6% (2.3% y/y). The trade, transportation and utilities group realized a 0.6% compensation gain (2.4% y/y) but educational services compensation improved just 0.4% (1.9% y/y).
A 0.1% uptick (1.7% y/y) in benefits was the focus of last quarter's weakness in compensation. It was driven by a 0.2% decline (+1.3% y/y) in private industry benefits, dragged down by a 0.4% drop (+1.1% y/y) in service industries. Benefits of natural resource, construction & maintenance workers declined 0.7% (+0.7 y/y) while benefits of management & professional workers fell 0.6% (+1.2% y/y). Goods producing industries benefits rose an improved 0.6% (2.3% y/y) and factory sector benefits also rose 0.6% (2.8% y/y).
Wages & salaries of civilian workers rose 0.2% (2.1% y/y) and private industry wages also gained 0.2% (2.1% y/y). Leisure & hospitality wages improved a strong 0.7%, lifting the y/y increase to 2.6% and up from 0.9% during all of 2013. Information sector wages increased a stable 0.6% (1.8% y/y) and financial industry wages gained 0.2% (2.4% y/y). These gains were offset by a 1.3% decline (+1.6% y/y) in professional & business services. Construction sector wages rose 0.8%, lifting the y/y increase 2.4%, up from 0.8% in 2010. Factory sector wages gained 0.7% and the 2.4% y/y rise was improved from 1.4% in 2009.
Total compensation for state & local government workers rose 0.6% (2.3% y/y) in Q2. Education workers compensation gained a steady 0.6% (2.3% y/y) while health care and social assistance comp rose 0.3% (2.2% y/y).
The employment cost index figures are available in Haver's USECON database. Consensus estimates come from the Action Economics survey, carried in Haver's AS1REPNA database.
|Employment Cost Index: Civilian Workers (%)||Q2'15||Q1'15||Q4'14||Q2 Y/Y||2014||2013||2012|
|Wages & Salaries||0.2||0.7||0.6||2.1||1.9||1.7||1.7|
|Private Industry Workers|
|Wages & Salaries||0.2||0.7||0.5||2.1||2.0||1.9||1.8|