Investment and stockbroking firm AJ Bell has sad that while an acceleration in wage growth for UK workers might ‘put the Bank of England on a state of alert when it comes to the next interest rate increase’, it will likely please UK retailers.
“In February wage growth, including bonuses, outpaced inflation, as measured by the consumer price index, for the first time since January 2017,” commented Russ Mould, AJ Bell investment director.
“That puts some welcome additional spending power into consumers’ pockets and the FTSE All-Share General Retailers index has tended to do best when wage growth has been outpacing inflation and do worst when pay increases have lagged increases in the cost of living.”
