US: Wage growth lifting - ANZ

According to the analysts at ANZ, it has been a while coming, but evidence is clearly building that US wage growth is on the ascent.

Key Quotes

“While average hourly earnings is not a perfect measure, the fact it is at its strongest level since mid-2009 is consistent with the likes of the Atlanta Fed Wage Growth Tracker, which in November sat at its strongest level since late 2008. The US labour market continues to tighten and that should leave the Fed comfortable remaining on a hiking path. Soft wage growth (in conjunction with strong asset price growth) has arguably been a factor contributing to the populist backlash seen in the US (and elsewhere too of course). One wonders then whether a turn in that trend will see those populist pressures ease or even reverse. We’ll have to wait and see, although it is likely that that ship has already sailed.”