UK wage growth rate slows as expected

The average weekly income in the UK, including bonuses for 3 months until 2024/5, was 689 pounds/week, up 5.7% from the same period last year, and fell below 5.9% in both the past 2 periods, but it matched the forecast of 5.7%.

Wage growth stabilized in the public sector (6.3%) and moderated in the private sector (5.5% vs. 5.9%).

Meanwhile, regular salary excluding bonuses increased 5.7%, making it the lowest increase since 2022/9.

The largest annual fixed wage growth rate was in the financial and business services sector (7%), followed by the manufacturing industry (6.4%) and the service industry (5.7%).

The rate of increase in real wages after adjustment for inflation stabilized at 2.2% of total payments including bonuses, and rose from 2.4% to 2.5% of regular salary excluding bonuses.

Source: National Bureau of Statistics