Sunday, August 05, 2018

Employment: July Diffusion Indexes

by Bill McBride on 8/05/2018 11:53:00 AM

I haven't posted this in a few months.

The BLS diffusion index for total private employment was at 64.0 in July, down from 67.4 in June.

For manufacturing, the diffusion index was at 65.1, down from 67.8 in June.

Note: Any reading above 60 is very good.  

Think of this as a measure of how widespread job gains are across industries. The further from 50 (above or below), the more widespread the job losses or gains reported by the BLS.  From the BLS:

Figures are the percent of industries with employment increasing plus one-half of the industries with unchanged employment, where 50 percent indicates an equal balance between industries with increasing and decreasing employment.
Employment Diffusion Index Overall both total private and manufacturing job growth was widespread again in July.