The U.S. 4Q Employment Cost Index came in at +0.8%, fora 4.1% rise in the year-over-year reading. Wages gained0.7% and benefits rose 0.8%. A big deceleration inmanufacturing wages stemmed from moderation in bothdurables and nondurables. FIRE wages were flat, reflectinga slowing in sales commissions. Manufacturing benefitsdropped 0.1%, in part on a drop in blue collar aircraftworker benefits. It appears a softer labor market in the latefall had an almost immediate effect on lowering laborcosts. However, the +4.1% ECI rise for all 2000 was thebiggest jump since 1991. The median estimate in a MarketNews International survey of economists called for a 1.1%gain in 4Q ECI. This marks the third year in a row that 4QECI printed below expectations.