Germany: Focus on labour costs for Q3 – Danske Bank

Analysts at Danske Bank point out that this morning Germany releases labour costs for Q3 and as Germany has the tightest labour market in the euro area, with the lowest level of unemployment in decades, this is likely to be where we should look for the first signs of wage pressure.

Key Quotes

“So far, wage growth has been muted. It was 2.3% y/y in Q2. Despite a tight labour market, we believe wage increases will continue to be quite moderate keeping a benign outlook for inflation.”

“The UK is due to release manufacturing production and the NIESR GDP estimate for November.”