ECI rose as expected

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.
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.