UK earnings slow more than expected
June 26, 2007 – 2:27 amFears of an inflationary wage spiral eased on Wednesday after data showed that average earnings growth slowed by more than expected in the three months to April. The labour market report from the Office for National Statistics showed that average earnings including bonuses climbed by 4 per cent, the weakest growth since September. April’s number was lower than March’s downwardly revised figure of 4.4 per cent and was much softer than analysts expectations. Excluding bonuses, wages rose by 3.6 per cent in the quarter to April, unchanged on the previous month. The earnings news will be welcomed by the Bank of England and may, marginally, reduce the pressure for further interest rate rises to combat inflation.
