Frequently Asked Questions

For clients

  • Average Hourly Earnings Indicator

    In the US it is customary to calculate the wages in money per hour. The average of it is extremely important, published every month by the American Bureau of labor statistics. The Hourly Earnings Indicator is a main indicator for predicting escalation.

    What does the Hourly Earnings indicator tell?

    The Indicator allows us to trace the dynamics of the average wage per hour at American companies (excluding agricultural companies). Based on the data, analysists predict consumer and industrial escalation additionally comparing it with process costs. The higher the wages, the more expensive the product shall be.

    But industrial escalation unavoidably touches the volume of consumer costs leading to consumer escalation. Having this in mind, the main financial regulators of the country have an only way out — fight the escalation increasing the rates, thus strengthening the national currency, in other words, the Average Hourly Earnings for American dollar always is considered positive. And vice versa, if the index is falling, such a factor shall be considered negative.

    Time of publication

    Every first Friday of the month 9 a.m. EST, you may find an up-to-date report on Hourly Earnings Indicator on the American Bureau of labor statistics’ web-site or other major news agencies (Bloomberg, Thomas Reuters etc.)

    How does the Indicator influence the trade?

    It is well known that the banks’ rates always tend to be descending, but if financial experts register an increase in the wage per hour, they lift it manually in order to reduce the escalation impact. In practice this doesn’t reflect in an immediate effect, thus making the Average Hourly Earnings Indicator a weak point for actions.

    The indicator often is left behind the scene, since it’s effect is only traced at long term. But the indicator is used in order to make sure the chosen strategy is appropriate and correct it if necessary. Thus, the Indicator is not considered independently, only accompanied by those that are published later.

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