The Kansas City Fed Labor Market Conditions Indicators (LMCI) suggest the level of activity increased modestly and momentum remained high in October. The level of activity indicator increased modestly in October from 0.92 to 1.00, while the momentum indicator decelerated moderately from 1.40 to 1.22.
The table in the current release shows the five labor market variables that made the largest contributions to the increase in the activity indicator over the last six months and the five variables that made the largest positive contributions to the momentum indicator in October 2018. The activity indicator increased 0.23 over the last six months. The largest contributor to the level of activity was the percent of firms planning to increase employment (NFIB). Eighteen variables made a positive contribution, and six variables made a negative contribution. The momentum indicator was 1.22 in October, where the largest contributor to momentum was initial claims. Fourteen variables made a positive contribution, and 10 variables made a negative contribution.