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Economy in Brief
U.S. Home Builder Sentiment Improves Slightly
The NAHB-Wells Fargo Composite Housing Market Index rose to 66 in August...
U.S. Retail Sales Post A Strong Increase; Nonauto Sales Surge Unexpectedly
Total retail sales rose 0.7% (3.4% y/y) during July...
U.S. Industrial Production Lower on Manufacturing and Mining
Industrial production declined 0.2% during July (+0.5% y/y)...
U.S. Productivity Growth Increases in Q2, But Downward Revisions Shift Trend
Productivity in the nonfarm business sector grew at a greater-than-expected 2.3% seasonally adjusted annual rate during Q2’19...
U.S. Business Inventories Flat and Sales Edge Up in June
Total business inventories were unchanged m/m (+5.2% y/y) in June...
by Tom Moeller October 1, 2008
Job cut announcements rose 7.2% to 95,094 in September reversing half of their August decline, according to the Challenger, Grey & Christmas survey.
The three-month level layoffs also increased to 95,714 and was near the highest level since early 2006.
The rise in layoffs last month was led by a huge 25,221 rise in the computer industry and a 8,288 rise in the apparel industry. Declines in layoffs were registered in the automotive, electronics and in the industrial goods industries. Layoffs also fell in insurance industry and in the telecommunication businesses
During the last ten years there has been a 76% (inverse) correlation between the three-month moving average of announced job cuts and the three-month change payroll employment.
Job cut announcements differ from layoffs. Many are achieved through attrition, early retirement or just never occur.
Challenger also reported that announced hiring plans fell m/m and they were down 2.6% y/y.
| Challenger, Gray & Christmas | September | August | Y/Y | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|---|
| Announced Job Cuts | 95,094 | 88,736 | 32.6% | 768,264 | 839,822 | 1,072,054 |
