Labor Market Conditions Index Stronger Than Expected

Friday's employment report showed wide strength giving a lift to the labor market conditions index which came in at a better-than-expected plus 1.6 in October. Adding to the strength is an upward revision to September, from zero to plus 1.3. After dipping in the spring, this indicator is now on a six-month winning streak where the rate of growth has averaged, however, only 1.4, well below the mid-single digit trend of the prior two years.

Recent History Of This Indicator:
The labor market conditions index is expected to rise from zero to 0.6 in October, reflecting the strength of last week's employment report. Before last week's report, this index had been very soft and not showing much reaction to low levels of unemployment.