Labor costs rise as expected in Q2

The employment cost index rose 0.6% in the second quarter, in-line with expectations. 

Expectations were for the report to show employment costs - which are a more comprehensive measure of compensation than the average hourly earnings number reported in the monthly jobs report - rose 0.6% in the second quarter. 

Over the prior year the ECI was up 2.3%, better than the 2.2% increase seen in the first quarter of the year. 

In the second quarter wages and salaries - which makes up 70% of the index - were up 0.6% while benefits were up 0.5%. 

Over the prior year wages and salaries are up 2.5% while benefits have increased 2%.