Sterling extends this week’s strong rally as boosted by stronger than expected wage growth. Average weekly earnings including bonus rose 3.6% 3moy in July, up from 2.4% and beat expectation of 2.5%. Weekly earnings excluding bonus rose 2.9% 3moy, accelerated from 2.7% and beat expectation of 2.7%. Unemployment rate was unchanged at 4.0% as expected. In August, claimant count rose 8.7k, above expectation of 3.6k.
ONS statistician David Freeman said that “earnings have grown faster than prices for several months, especially looking at pay excluding bonuses”. Also, “the labour market remains robust, with the number of people working still at historically high levels,”
