When the impact of inflation is factored in, real weekly wages fell by 0.4%, both including and excluding bonuses, compared with a year earlier.
Some analysts even speculated that the Bank of England could hike United Kingdom interest rates as soon as November, and then again in the first half of 2018.
His comments will anger Brexiteers who have accused Mr Carney of being too pessimistic and come after Boris Johnson's proclamation of a "glorious Brexit" over the weekend.
Mark Carney's speech underscores the complexity of the task facing the BoE as Britain attempts to extricate itself from the EU.
In his speech, Carney reiterated that the BOE would proceed the rate hikes at a gradual pace and to a limited extent.
Speaking in support of that stance, he described Brexit as inflationary, while saying that the rate setting panel has a responsibility to curb such trends.
"The balance of these effects has lead overall United Kingdom growth to slow in the first half of 2017, even as growth in the rest of the G-7 was picking up, and United Kingdom growth looks set to remain weaker than the G-7 average until mid-2018", Carney said.
"Any reduction in openness with the European Union is unlikely to be immediately compensated by new ties of a similar magnitude with other trade partners", the BOE governor said. Other central banks around the world are also seeking to raise interest rates, which means "the case for a modest monetary tightening is reinforced". A reduction in trade integration may have adverse implications for the supply of goods, services and labour at cheap rates. Consequently, he concluded "as a result of these factors and the general weakness in United Kingdom productivity growth since the global financial crisis, the supply capacity of the United Kingdom economy is likely to expand at only modest rates in coming years".
The current pound to euro exchange rate is €1.12693 (at the time of writing).
Sterling saw a surge in strength towards the end of last week, as a surprisingly hawkish Bank of England (BoE) meeting minutes report, as well as hawkish comments from BoE officials, made the Pound much more appealing.
Carney's speech, echoing the surprise statement issued by United Kingdom policy makers last week, underscores the complexity of the task facing the BoE as Britain attempts to extricate itself from the EU. "The MPC could yet be deterred from acting if pay growth shows no sign of picking up over the coming weeks and the economy appears to be struggling during the autumn".