By doing so, they risk reducing competitiveness, employment growth, and thus consumption. Wage moderation is a key factor not only to maintain price stability, but also to support job creation and economic growth on a sustained basis.
And other indicators point to the same conclusion. In the latter half of last year, the major survey measures of consumer sentiment all moved back to levels not seen since before the recession began. In particular, survey components related to expectations regarding future income and finances have shown notable strength.