WASHINGTON — The employment cost index posted a 0.6% gain for a 2.2% increase year-over-year pace, about as expected.
Wages posted up 0.5% in Q4, probably just a retreat after two periods of more robust growth.
Benefits posted a 0.6% gain overall, close to trend. Benefits for natural resources & construction occupations were an exception at up 0.8%, probably reflecting larger pension contributions based on lagged profits. These should diminish ahead.
ECI was held down by lower real estate compensation and slower than average growth in leisure compensation. Sales wages were up 1.2% after a 1.0% gain in Q3, with the two gains in a row suggesting there is good compensation growth beyond year-end bonuses.
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