The U.S. Employment Cost Index is negative and below expectations for the second consecutive time.

On Thursday, the U.S. Bureau of Labor Statistics released data on the U.S. Employment Cost Index for the third quarter of this year, which came in negative and marked a reading lower than market expectations for the second consecutive quarter.

According to the data released today, the Employment Cost Index only grew by 0.8% during the second quarter, while market expectations indicated a rise of 0.9%. This comes after the Employment Cost Index recorded a growth of 0.9% during the second quarter of the same year.

It is worth noting that this index measures the change in total employee compensation on a quarterly basis, including salaries, wages, and benefits. It serves as a broader measure of labor costs and is one of the easiest ways to assess wage trends and wage inflation risks, especially since wage inflation is a top priority for the U.S. Federal Reserve. Federal Reserve officials are always monitoring any potential signs of inflationary pressures within the country.