Soft wages hit Australian dollar

The wage price index is out and missed consensus for 0.6% March quarter growth at 0.5%. Year on year was on target at 2.1%:

TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES

QUARTERLY CHANGE (DEC QTR 2017 TO MAR QTR 2018)

  • The trend and seasonally adjusted indexes for Australia both rose 0.5% in the March quarter 2018. This continued the moderate rate of wage growth recorded by the series over the last two years.
  • The Private and Public sector both rose 0.5%, seasonally adjusted.
  • The largest rise in indexes at an industry level (in original terms) was recorded in the Education and training industry (0.8%). A number of industries recorded the same lowest rate of wage growth, 0.2%.

ANNUAL CHANGE (MAR QTR 2017 TO MAR QTR 2018)

  • The trend and seasonally adjusted indexes for Australia both rose 2.1% through the year to the March quarter 2018. This continues the rate of wage growth recorded in the December 2017 quarter.
  • Rises through the year to March quarter 2018 at the industry level (in the original indexes) ranged from 1.4% for Mining to 2.7% for Health care and social assistance.

Going nowhere fast. The Aussie dollar took it poorly:

More to come…

Comments

  1. St JacquesMEMBER

    Seven consecutive years of predictive failure by the RBA et al to be continued and they tell us they understand what’s going on
    bwahhahahahahahaha

  2. oliver47MEMBER

    To paraphase RBA’s Debelle yesterday……… ‘based on the experience of other countries, wages growth may remain lower than historical experience would suggest. RBA’s liaison showed most firms expect wages growth to remain broadly stable.’
    In Debelle’s opinion ‘this argues for ongoing wage outcomes centred around 2% yearly growth and for an even lower unemployment rate than currently expected to generate higher wages growth in the future.’.. but it hasn’t happened in the US yet!

  3. Obviously they are still learning from our Chinese overloads – just make shit up. If the numbers are no good then juice them a little. Perpetual boom times.