UK wage growth slows in June-August ’24

The UK’s annual growth in employees’ average regular weekly earnings, excluding bonuses, stood at 4.9 per cent in June to August 2024, the lowest since April to June 2022, when it was 4.7 per cent.

Total earnings, including bonuses, rose 3.8 per cent, influenced by NHS and civil service one-off payments in mid-2023.

In the public sector, annual regular earnings growth slowed to 5.2 per cent, down from 5.7 per cent in the previous quarter, while the private sector saw a 4.8 per cent increase. The manufacturing sector led with the highest growth rate at 6.0 per cent.

The pound sterling remained relatively stable against the US dollar after the data was released.

The Bank of England (BoE) recently held rates steady in September, following a cut in August, as it sought more signs of easing inflation.

Economists polled by Reuters expect data due on Wednesday to show the UK’s consumer prices index fell to 1.9 per cent in September, below the BoE’s 2 per cent target.