US Employment Cost Index rises 0.9% in Q4 vs. 1% expected

• Employment Cost Index rose less than forecast in Q4.
• US Dollar Index stays in the red slightly below 103.50 after the data.

Compensation costs for civilian workers, the Employment Cost Index, rose 0.9% in the fourth quarter of 2023, the US Bureau of Labor Statistics reported on Wednesday. This reading followed the 1.1% increase recorded in the previous quarter and came in below the market expectation of 1%.

"Compensation costs for civilian workers increased 4.2% for the 12-month period ending in December 2023 and increased 5.1% in December 2022," the BLS noted in its press release. "Wages and salaries increased 4.3% for the 12-month period ending in December 2023 and increased 5.1% for the 12-month period ending in December 2022."

Market reaction

The US Dollar Index edged slightly lower after this report and was last seen losing 0.06% on the day at 103.35.