According to data from the U.S. Department of Labor, the Employment Cost Index (ECI) rose 0.9% quarter-over-quarter in the second quarter, slightly exceeding the 0.8% increase expected by economists surveyed by Reuters and matching the first quarter’s gain. Within this, wages and salaries in the private sector rose 0.9%, up from 0.7% in the first quarter.

Despite the rise in labor costs, the report noted that this trend indicates the labor market is not a major driver of inflation. Wage growth was particularly strong in goods-producing industries, with wages in the construction sector rebounding by 1.5% and those in manufacturing rising by 1.0%.

Following the release of the data, U.S. stock markets opened higher, the U.S. dollar strengthened against a basket of currencies, and U.S. Treasury yields rose, with the 30-year Treasury yield approaching a 19-year high.