Australia: Wage price index rose 0.5%/q - TDS

Analysts at TDS points out that Australia’s Q1 Wage price index rose +0.5%/q and +1.9%/yr as TD and the market expected.

Key Quotes

“There was a downward revision to the Q4 2015 release (from 0.5% to 0.4%/qtr), so given the +0.5% Q1 2017 print, the data is consistent with the RBA’s assertion for no further downward pressure in wages. However in annual terms and not rounding the data, annual wage growth across all jobs dropped to a record low of 1.865%. Given the RBA’s focus on the underemployment rate and this being at record highs (an alternative measure of spare capacity), this helps explain why wages growth remains at record lows.”

“Consumer confidence for May sank –1.1%/m from 99.0 to 98.0(prior –0.7%) while current conditions fell –3.3%/m (prior +1.5%).”