Econoday Report: Employment Cost Index April 30, 2009

2009 Economic Calendar

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Employment Cost Index

Released on 4/30/2009 8:30:00 AM For Q1:09

	Prior	Consensus	Consensus Range	Actual
ECI - Q/Q change	0.5 %	0.5 %	0.4 % to 0.8 %	0.3 %
ECI - Y/Y change	2.6 %			2.1 %

Highlights
Labor costs are subsiding significantly, posing no inflationary risks. Readings across the first-quarter employment cost report are at record lows in more than 25 years of data including a 0.3 percent quarter-to-quarter rise in the main index. The year-on-year rate is also at a record low of 2.1 percent. Wages & salaries rose only 0.3 percent with wages & salaries for financial activities down 1.0 percent. Benefit costs were up 0.5 percent reflecting gains in blue collar groups, groups that are protected by contracts.

Market Consensus Before Announcement
The employment cost index for civilian workers showed little wage inflation in the fourth-quarter, rising only 0.5 percent, compared to three prior quarters of 0.7 percent increases. The year-on-year rate of 2.6 percent was the lowest on record (1982). Increases in both wages and benefits were mild at 0.4 percent and 0.5 percent, respectively.

Definition
A measure of total employee compensation costs, including wages and salaries as well as benefits. The employment cost index (ECI) is the broadest measure of labor costs. Why Investors Care

The employment cost index measured total compensation costs which include wages and salaries and also benefits. Benefits include vacations, but the primary mover is health insurance premiums.

Data Source: Haver Analytics

2009 Release Schedule

Released On: 1/30 4/30 7/31 10/30

Released For: Q4:08 Q1:09 Q2:09 Q3:09

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