WASHINGTON, Aug 28 (Reuters) - The Kansas City Federal Reserve Bank said on Thursday its labor market indices showed an uptick in July, underscoring the broad improvement in U.S. jobs data.
The regional Fed bank, however, added that recent declines in the unemployment rate overstate improvements in labor market conditions.
The Kansas City Fed’s Labor Market Conditions Indicators(LMCI) were built last year as a weighted average of 24 labor market variables to provide a broad gauge of labor activity across the country.
The LMCI suggest the level of labor market activity has improved since early 2010 and labor market momentum has been near historically high levels over the past four months. The indicators also indicate labor market activity will return to its historical average level in the second half of 2015.
The LMCI activity indicator inched up to -0.604 in July from -0.607 in June. The momentum indicator, hovering around historically high levels during the past four months, rose to 1.2 in July from 1.1 the previous month, the Kansas City Fed said. (Reporting by Michael Flaherty; Editing by Paul Simao)