The good news. Wages are growing at a 4% pace. (Click on chart to enlarge). This is good news since inflation is close to only 2%. Consumers have the money to spend. And their purchasing power will keep the economy growing. The bad news is that if productivity growth declines (as it usually does when the economy slows down), the growth in wages will translate into higher labor costs for business and lower profits. This trend may have a negative impact on the stock market. More on www.peterdag.com.George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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