Employee compensation costs jumped more than expected to start the year, providing another danger sign about persistent inflation, while consumer confidence hit its lowest level in nearly two years.
The employment cost index, which measures worker salaries and benefits, gained 1.2% in the first quarter, the Labor Department reported Tuesday.
The Fed watches the ECI as a significant measure of underlying inflation pressures.
State and local government workers saw their compensation costs rise 4.8%, down just narrowly from the same period in 2023.
The Consumer Confidence Index slipped to 97, a decline of 6.1 points that was below the Wall Street estimate for 103.5.
Persons:
Dow Jones, Dana Peterson, Peterson
Organizations:
Labor Department, Dow, Fed, Committee, Conference
Locations:
State