April 30, 2024
United States:
US Labor Costs Rise by Most in Year in Sign of Wage Pressures
A broad gauge of US labor costs closely watched by the Federal Reserve accelerated in the first quarter by more than forecast, illustrating persistent wage pressures that are keeping inflation elevated.
The employment cost index, which measures wages and benefits, increased 1.2%, the most in a year, after rising 0.9% at the end of 2023, according to Bureau of Labor Statistics figures out Tuesday. The advance exceeded all projections in a Bloomberg survey of economists.
Europe:
Euro-Zone Speeds Out of Recession But Inflation Proves Sticky
The euro zone exited recession as its four top economies drove much speedier growth than expected, though the recent retreat in inflation stalled.
First-quarter gross domestic product increased by 0.3% from the previous three months — the strongest pace in 1 1/2 years. A separate release showed consumer prices rose an annual 2.4% in April, matching March’s pace and in line with analyst estimates.
Asia:
BOJ Accounts Suggest Japan Intervened Monday to Support Yen
Japan likely conducted its first currency intervention since 2022 to prop up the yen on Monday, according to a Bloomberg analysis of central bank accounts.
The BOJ reported Tuesday that its current account will probably fall ¥7.56 trillion ($48.2 billion) due to fiscal factors including government bond issuance and tax payments on Wednesday. That’s much bigger than a drop of about ¥2.1 trillion estimated by private money brokers, suggesting that intervention of about ¥5.5 trillion took place.
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