US labor costs rise moderately in third quarter
SPY•The Employment Cost Index rose 0.8% in the third quarter, after increasing 0.9% in the previous quarter. Labor costs advanced 3.4% in the 12 months through September, matching the increase in the year through June.
1. Quarterly labor costs
The Employment Cost Index, a broad measure of labor costs, rose 0.8% in the third quarter after increasing 0.9% in the April-June period. The increase was in line with economists’ expectations.
2. Annual increase
Labor costs advanced 3.4% in the 12 months through September, the same rate as in the year through June. Policymakers view the index as a measure of labor market slack and a predictor of core inflation because it adjusts for composition and changes in job quality.
