The Bureau of Labor Statistics has presented the data for second quarter (Q2) year-over-year wage growth. Average weekly wage growth is 3.7% year-over-year.
With inflation (CPI) averaging 1.8% over the same period this means wages are strongly outpacing inflation and increasing the disposable income of U.S. workers. This data-set, combined with positive consumer sentiment on job and economic security, bolsters the recent report showing “unanticipated” strength in retail sales.
The data is a reflection of Main Street strength. The job market is hot; wages are rising (3.7%) much faster than inflation (1.8%); the middle class has more disposable income. Hence, retail sales growth is strong at 3.8 percent.