While wages still fail to accelerate in the US, they do in the UK and in Germany.
According to the latest Eurostat figures, wages & salaries per hour worked grew by 3.5% in Germany between Q2 2014 and Q2 2015. Another large EU country where wages increased at a significant pace over the same period was the United Kingdom (+ 2,6%, while a +2.9% rise in weekly earnings was also reported over the 12 months period that ended in July). Together with low inflation and the decline in unemployment, these increases allow for a rise in households’ spending power. Within the Eurozone, the rise in German wages, more substantial than in France, Spain or Italy, also supports the general rebalancing of the region¹s economy, helping Germany’s neighbours to increase their price competitiveness.