Australia’s Q1 Wage Price Index preview - Westpac

Analysts at Westpac offer a sneak peek at what to expect from Wednesday’s Australian Q1 Wage Price Index due at 0130 GMT.

Key Quotes:

“There has been some tightening in the Australian labor market, as measured by the broader measures of labor utilization, but we still observe ongoing weakness in wage outcomes. Total hourly wages ex-bonuses increased 0.6% in the December quarter, just slightly above market and Westpac expectations for 0.5% lifting the annual pace modestly from 2.0%yr to 2.1%yr.

Private sector wages grew 0.5% holding the annual rate at 1.9%yr. Public sector wages grew 0.6% with the boost coming from professional & technical (1.0%), education (0.8%) and healthcare (0.9%). Public sector wage inflation is holding an annual pace of 2.4%yr which is just up on the 2016 record low of 2.3%yr.

The December quarter reported a modest uptick in new Enterprise Bargaining Agreements wage outcomes, but they are still less than the average of existing agreements