Econoday Report: Employment Cost Index July 30, 2010

2010 Economic Calendar

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Employment Cost Index

Released on 7/30/2010 8:30:00 AM For Q2:10

	Prior	Consensus	Consensus Range	Actual
ECI - Q/Q change	0.6 %	0.4 %	0.3 % to 0.6 %	0.5 %
ECI - Y/Y change	1.7 %			1.8 %

Highlights
Employment cost pressures eased in the second quarter, up 0.5 percent for the employment cost index vs. a 0.6 percent rise in the first quarter. Wage & salary pressure was steady at plus 0.4 percent while benefit costs came down to plus 0.6 percent vs. the first quarter's 1.1 percent. Year on year, total costs were at plus 1.8 percent in the second quarter vs. plus 1.7 percent in the first quarter. Year-on-year compensation for local & state government is the lowest on record at plus 1.8 percent. Wage pressure, and inflation pressure in general, is not the concern right now, rather the rate of economic growth is the concern.

Market Consensus Before Announcement
The employment cost index for civilian workers in the first quarter rose 0.6 percent (not annualized) for the highest rate of the recovery and compared with a 0.4 percent rise in the fourth quarter. The year-on-year rate increased to 1.7 percent, 2 tenths above the fourth-quarter pace. The latest quarterly gain was led by benefits costs which jumped 1.1 percent while wages & salaries remained tame at plus 0.4 percent.

Definition
A measure of total employee compensation costs, including wages and salaries as well as benefits. The employment cost index (ECI) is the broadest measure of labor costs. Why Investors Care

The employment cost index measured total compensation costs which include wages and salaries and also benefits. Benefits include vacations, but the primary mover is health insurance premiums.

Data Source: Haver Analytics

2010 Release Schedule

Released On: 1/29 4/30 7/30 10/29

Released For: Q4:09 Q1:10 Q2:10 Q3:10