Wages and labor spending increased, no indicators show inflation slowing.
The Labor Department released third-quarter information showing that worker pay and benefits rose rapidly compared to the year before. The employment cost index, a measure of what employers pay for wages and benefits, rose 5% in the third quarter from the same period a year earlier. That was a slightly slower pace than in the second quarter but still well above gains before the pandemic.
Consumer spending also rose more than expected. Purchases of motor vehicles and spending on food, clothing, prescription medication, and recreational goods were higher than projected. There were also increases in outlays on services, driven by housing and utilities as well as travel and dining at restaurants.
“Americans may say they are worried about inflation, but they are still out shopping which keeps the economy growing for another quarter,” said Christopher Rupkey, chief economist at FWDBONDS in New York. “There can be no chance that inflation pressures will subside in the near term from slowing demand.”
As the Lord Leads, Pray with Us…
- That Labor Secretary Walsh seeks the Lord’s guidance as he oversees his department.
- For Acting Administrator Davidson as she oversees the Wage and Hour Division of the Labor Department.
- For the president and his economic advisors as inflation continues to rise.
Sources: Wall Street Journal, Reuters, Yahoo Finance
