US Employment Cost Index rises 1.2% in Q1 vs. 1% expected

• Employment Cost Index rose at a faster pace than expected in Q1.
• US Dollar Index stays in positive territory near 106.00 after the data.

The Employment Cost Index in the US rose 1.2% in the first quarter, the US Bureau of Labor Statistics (BLS) reported on Tuesday. This reading followed the 0.9% increase recorded in the last quarter of 2023 and came in above the market expectation of 1%.

"Compensation costs for civilian workers increased 4.2% for the 12-month period ending in March 2024 and increased 4.8% in March 2023," the BLS said in the press release. "Wages and salaries increased 4.4% for the 12-month period ending in March 2024 and increased 5.0% for the 12-month period ending in March 2023."

Market reaction

The US Dollar gathered strength against its rivals with the immediate reaction. At the time of press, the US Dollar Index was u p 0.35% on the day at 106.00.