The American economy published two figures early Thursday afternoon which suggest working conditions and wages are on the rise at the start of the third quarter. The Bureau of Labor Statistics issued a revised version of its Non-Farm Productivity report which revealed a 0.7% decline in productivity, which is assumed to be equivalent to a similar increase in worker wages.
Confirming this assumption was a second quarterly report, also revised, on Labor Unit Costs. The expectation was for a rise in labor cost of 2.3%, up from last quarter’s 2.2%. The actual result revealed a 3.3% increase for the cost of labor, supporting the notion that wages are on the rise across the non-farm sector of the US economy. This is expected to translate into higher consumer spending and capital investments over the coming months, and may help the US dollar (USD) rise from heightened demand over the long-term.
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