US: Employment Cost Index rises by 1% in Q4 vs. 1.1% expected

• Employment Cost Index in the US rose less than expected in Q4.
• US Dollar Index lost its traction and erased daily recovery gains after the data.

The data published by the US Bureau of Labor Statistics revealed on Tuesday that the Employment Cost Index, compensation costs for civilian workers, increased by 1.1% in the fourth quarter. 

This reading came in below the market expectation of 1% and followed the 1.2% increase recorded in the third quarter.

"Wages and salaries increased 1.0% and benefit costs increased 0.8% from September 2022," the BLS further noted in its publication.

Market reaction

With the initial reaction, the US Dollar lost some strength against its major rivals and the US Dollar Index was last seen trading virtually unchanged on the day at 102.22.