ECI rose as expected

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Walmart department manager Karren Gomes helps stock shelves with school supplies as the retail store prepare for back to school shoppers in San Diego, California August 6, 2015.
source
Reuters/Mike Blake

The employment cost index came in as expected in the first quarter of 2016.

ECI rose by 0.6%, in line with economists’ expectations.

Wages and salaries, which make up 70% of the index, rose by 0.7%. Meanwhile, benefits, which make up the other 30%, rose by 0.5%.

Compensation costs for civilian workers increased by 1.9% over the year, while compensation costs for private industry workers increased by 1.8% over the year.

The previous reading showed that the index rose by 0.6% in the fourth quarter of 2015.

The ECI report is a more comprehensive measure of wage growth than the average hourly earnings figure released with the monthly jobs report as it takes into account benefits in addition to wages and salaries.