FX.co ★ UK Wage Growth Slightly Below Estimates

In the UK, regular pay, excluding bonuses, saw a year-on-year increase of 5.6%, reaching GBP 671 per week in the three months leading to March 2025. This growth represented a deceleration from the previous period's 5.9% rise and did not meet market expectations of a 5.7% increase. It was the slowest growth rate since the three months leading up to November 2024. Wage growth in the private sector hit a five-month low, recording a 5.6% increase compared to 5.9% in the three months to February. Conversely, public sector pay saw a rise of 5.1%, marking the smallest gain in four months. Among various industries, wholesale, retail, hotels, and restaurants experienced the most significant annual wage growth at 6.9%, trailed by construction at 6.4%, services at 5.6%, manufacturing at 5.4%, and finance and business services at 4.0%. When adjusted for inflation, real wages rose by 1.8%, the weakest increase since February 2024.