Did Real U.S. Wage Growth Move Back to Positive Territory?
Real average hourly earnings for all employees increased 0.3% from June to July 2023, seasonally adjusted, the U.S. Bureau of Labor Statistics reported on August 2023.
This result stems from an increase of 0.4% in average hourly earnings combined with an increase of 0.2% in the Consumer Price Index for All Urban Consumers (CPI-U).
Real average weekly earnings were essentially unchanged over the month due to the change in real average hourly earnings combined with a 0.3% decrease in the average workweek.?
Real average hourly earnings increased 1.1%, seasonally adjusted, from July 2022 to July 2023.
The change in real average hourly earnings combined with a decrease of 0.9%? in the average workweek resulted in a 0.2% increase in real average weekly earnings over this period.
Real average hourly earnings for production and nonsupervisory employees increased 0.2% from June to July 2023, seasonally adjusted.
This result stems from a 0.5% increase in average hourly earnings combined with an increase of 0.1% in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Real average weekly earnings increased 0.3% over the month due to the change in real average hourly earnings being combined with no change in the average workweek.
From July 2022 to July 2023, real average hourly earnings increased 1.9, seasonally adjusted.
The change in real average hourly earnings combined with a decrease of 0.6% in the average workweek resulted in a 1.3% increase in real average weekly earnings over this period.
Real U. S. wage growth moves back to positive territory.
Real U. S. wage growth moved back to positive territory after a record 25 consecutive months I which inflation was outpacing hourly earnings.
The loss of purchasing power in 2022 was a major factor weighing on markets as it sent consumer sentiment to record lows according to University of Michigan and drove the Fed to pursue its most aggressive tightening cycle since the early 1980s.
With wages now outpacing inflation again, consumer sentiment has rebounded to a 22-months high and the Fed is expected to be at the end of its rate-hiking cycle.
Hopefully, real wages remain positive, ,but should they turn down again it could signal further tightening from the Fed and a more challenging market environment explained Charlies Biello from Creative Planning.
The Dow Jones U.S. Mortgage REITs Index rose on Monday, September 11, 2023 by +0,32 points to 30.52 which reprensents +1.06%.
We show how equity Real Estate Investment Trusts, the world's best asset class, closed on Monday, September 11, 2023 with our optimized quant pooling index approach in dividing the index into four elements:
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Fire: Our top 10 performers achieved a one day performance of 1.79% on Monday, September 11 2023 with an average annual dividend yield of 13.48%.
Water: Our 10 best mREIT components according to their dividend yields achieved a one day performance of 1.18% on Monday, September 11, 2023 with an average annual dividend yield of 15.59%.
Earth: Our top 10 best mREIT components according to their market capitalization reached a one day performance of 0.75% on Monday, September 11, 2023 with an average annual dividend yield of 11.02%
Air: All our 38 mREIT components reached a one day performance of 0.72% on Monday, September 11, 2023 with an average annual dividend yield of 11.78%
The average dividend yield of our four elements of our mortgage Real Estate Investement Trusts is 12.97%
As US Inflation, from August 2022 to July 2023 was 3.2%, our average cash flow without inflation would have been +9.77%.
Our weighted mREIT ETN and ETFs reached a one day performance of 1.84% on Monday, September 11, 2023 with an average annual dividend yield of 14.27%.
We consider that the creation of individual prototype portfolios with our optimized quant pooling approach that includes all 38 elements of mortgage Real Estate Investment Trusts would outperform weighted mortgage Real Estate Investment Trusts Exchange-Traded Funds and mortgage Real Estate Investment Trusts Exchange-Traded Notes.
We also consider that decentralized real assets cooperatives that would be organized like the world's biggest asset management cooperative that is the Vanguard Group could help local commuity members to contribute to strongly compensate the risks of inflation and financial turmoil that the world suffers since the pandemics.
We wish you all a great and happy weekend!
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Lucas