China manufacturers face fall in
demand Wage inflation prompts retailers to move orders to south - east Asia
Not exact matches
Although Japan's market has rallied this year, Morgan Stanley's strategists note that investors haven't fully priced in earnings growth,
wage inflation and support from external
demand.
The same thing could be going on nationally ------ little or no
wage inflation because employers refuse to offer more, and nonunion employees have no bargaining power to
demand more.
Given these conditions, a key issue for the Australian economy will be the extent to which the ongoing growth of
demand might give rise to capacity constraints and, consequently, upward pressure on
wage and price
inflation.
How that will all pan out is difficult to say, but I suspect that rising
wage inflation will have a bigger impact on overall
inflation than falling consumer
demand will.
In a scenario with a reasonably benign world environment, these factors could see a strengthening of
demand pressures and hence upward pressure on
wage and price
inflation.
He added: «The reality is that the Bank of England has little room to manoeuvre as the high cost of oil, food and
wage demands continue to drive up
inflation.»
The skills they are looking for are simply not available in sufficient quantity to meet the industry
demand and that is now starting to push up salaries in a number of markets, even when overall
wage inflation remains very low.
With
demand for health care expected to continue to be on the rise, however, this
wage is likely to grow appropriate with
inflation.
«There are simply not enough homes coming onto the market to catch up with
demand and to keep prices more in line with
inflation and
wage growth.»