Labor market “activity declined and momentum remained high in August,” as the Federal Reserve Bank of Kansas City Labor Market Conditions Indicators (LMCI) fell to 0.40 in August from 0.52 in July, according to the Bank.
The momentum indicator grew to 1.35 from 1.27 in July.
A zero reading indicates the indicator is at its historical average.
The activity indicator rose 0.12 in the past half year, with the largest contributor coming from an increase in the job availability index (Conference Board). Positive contributions were made by 14 variables while 10 were negative.
The momentum indicator’s largest contributor was an increase in the manufacturing employment index (ISM). Positive contributions were made by 18 variables, while 6 were negative.