Wages and Salaries in Britain
Average Earnings Index 3MoY (UK)
Earnings Turned Fell in May for the First Time Since 2014
Starts Tuesday, August 11, 2020 at 08:30
Updated Wednesday, August 5, 2020
Average earnings index kept growing in 2017 and early in 2018 in the UK, and it reached 2.8% in January and February last year. But, the increase in earnings started to decelerate after that and they have been slowing throughout the year. The growth continued slowing until it fell to 2.4% as shown in August's report. But, it started increasing again and we saw numbers such as 2.6% in September and 2.7% in October. The report released in November showed that earnings jumped to 3.0% in September, which is near the highest levels in recent years. Then, December's report took the number to 3.3%, which is great, but not as great as the 3.4% we saw for November as well as for December, which was revised even higher to 3.5%. The British economy has been weakening considerably in recent months and earnings did dip a little in March/April, but they returned strong again in May, increasing by 3.4% YoY. It was revised higher to 3.5% last month, while in June earnings jumped higher again to 3.7%. In July, earnings surged further to 4.0%, but they cooled off to 3.8% in September and to 3.4% for October. The pace of growth declined further to 3.2% although, but they stopped cooling off in November. IN February earnings cooled off again to 2.8%, but after the shutdown in March, they slowed to 2.4%. In April earnings came at 1.0%, while they turned negative in May, declining by 0.3%. Please follow us for live coverage of this event by experienced market analysts.
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About Average Earnings Index 3MoY (UK)
The average earnings index data shows the prices that British businesses and the UK Government pay for labor. This report also includes bonuses that employees receive. It is calculated and released by the UK Office for National Statistics. It is in the 3MoY format, which means that the average number of the last three months, as compared to the same period of the previous year. The data is presented as the change in the percentage of earnings between the two periods. This data is a late release because it is released 45 days after the month ends. Nonetheless, it is a leading indicator of consumer inflation CPI (consumer price index) since the higher the earnings are, the more likely the consumer is to spend. The CPI inflation is one of the main mandates of the Bank of England, so a positive number is good for the GBP.