employment cost index
Also found in: Acronyms, Wikipedia.
Employment Cost Index
An index compiled by the Bureau for Labor Statistics estimating the cost of hiring and paying the American workforce. Analysts closely monitor the employment cost index: an unexpectedly large increase may result in downward pressure in the market. This is because a rise in the cost of paying employees reduces profits, which in turn reduces stock prices. It may also reduce bond prices because rises in the ECI are seen as a harbinger of inflation.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
employment cost index
A closely watched economic report by the Bureau of Labor Statistics that indicates the total cost of employing a civilian worker. A larger-than-expected increase in the index is likely to place downward pressure on both bond and equity prices.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.