(ABM FN-Dow Jones) Wage developments in the US do not yet confirm the desired inflation trend. Market analyst Philip Marey of Rabobank said this to ABM Financial News on Wednesday.
Salaries rose 5.0 percent year on year, after a 5.1 percent increase a month earlier, ADP figures showed. Wages for people who changed jobs increased by 9.3 percent. In March they increased by 10.0 percent and the month before by 7.6 percent.
“This makes wage development look stiff. The Fed emphasized once again in March that interest rate policy is also determined by job growth, whereby a slowdown could become a consideration for lowering interest rates. However, it does not look like that for the time being,” he said. Marey.
Marey pointed to the construction sector, which added 35,000 jobs, and the leisure sector, where job growth this time was 56,000 and which was by far the largest contributor to growth in the services segment, as the main drivers behind April’s job growth. All sectors contributed to the growth in the number of jobs in the private sector.
The euro traded 0.1 percent higher on Wednesday at 1.0678 dollars.
Source: ABM Financial News
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Tags: Stock market view wage increase desired confirmation Fed
