The weakness of wage growth is partly due to the near-stagnation in productivity. Unfortunately, the news last week that non-farm productivity was unchanged over 2014 as a whole, suggests there is little prospect of a pick-up in real wage growth in the near-term. Nevertheless, we do expect nominal wage growth to accelerate further, as underlying inflation begins to rise as well.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.