Labor Market Conditions Index Slips

The labor market index has slipped back into contraction, at minus 0.7 in August vs a revised plus 1.3 in July. The July reading interrupted what were six straight negative results. Still, minus 0.7 is only marginally negative though it could help the doves hold off whatever chances there are of a rate hike at this month's FOMC meeting. Yet the weight this experimental composite of 19 separate indicators carries with policy makers is limited, underscored by Janet Yellen who in the past has downplayed the significance of this report.