The UK’s Average Earnings excluding Bonus for the three months on a year-over-year basis decreased to 4.7% from a previous 4.8%, marking a 0.1 percentage point decline. This indicates a slight cooling in wage growth compared to the prior period.
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The actual result matched analyst estimates of 4.7%, suggesting that the market had anticipated this slowdown in wage growth. This alignment with expectations is likely to have a neutral impact on the stock market, with limited immediate reactions. However, sectors sensitive to consumer spending, such as retail and consumer goods, may experience minor fluctuations as investors assess the implications for consumer demand. The market impact is expected to be short-term, driven by sentiment rather than policy shifts.