UK wage growth eases a touch
By Michele Maatouk
Date: Tuesday 17 Oct 2023
(Sharecast News) - Growth in basic wages eased a little in August, according to figures released on Tuesday by the Office for National Statistics.
Average earnings excluding bonuses rose 7.8% in the three months to August versus a year earlier, down from upwardly-revised 7.9% growth the month before. Economists were expecting growth to be unchanged at 7.8%.
Growth in the three months to July was the highest since records began in 2001.
Total earnings including bonuses eased to 8.1% growth from 8.5%, versus consensus expectations of 8.3%.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: "Signs that wage growth is losing momentum should persuade the MPC to keep Bank Rate at 5.25% again next month.
"Average weekly earnings excluding bonuses increased by 0.34% month-to-month in August- or 4.2% on an annualised basis- well below the 0.66% average increase in the first seven months of 2023. August's rate of increase remains too fast for the MPC to tolerate indefinitely, and might well be revised up, as has usually been the case recently. But wages lag changes in labour market slack, which is continuing to accumulate."
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