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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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
