The Kansas City Fed Labor Market Conditions Indicators (LMCI) suggest the level of activity increased and momentum remained high in February. The level of activity indicator increased in February from 0.86 to 0.96, while the momentum indicator decelerated moderately from 0.87 to 0.73.
The table in the current release shows the five labor market variables that made the largest contributions to the decrease in the activity indicator over the last six months and the five variables that made the largest positive contributions to the momentum indicator in February 2019. The activity indicator decreased 0.07 over the last six months. The largest contributor to the decline in the level of activity was the percent of firms planning to increase employment (NFIB). Nine variables made a negative contribution, two variables made no contribution, and 13 variables made a positive contribution. The momentum indicator was 0.73 in February, where the largest contributor to momentum was initial claims. Fifteen variables made a positive contribution, and nine variables made a negative contribution.