Wage Growth Set To Weight On Profit MarginsRupert Hargreaves
Wage Growth Set To Weight On Profit Margins
A tightening labour market and peak margins pose a risk to S&P 500 profits in the near term; that’s according to a new research report on rising labour costs and US equities from Goldman Sachs.
The report notes that while average hourly earnings growth has spiked higher to 2.3% this year, this growth is still below the long-term average. Moreover, the healthy labour market should drive an acceleration of the trend labour costs.
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