Employment Provides Some Cheer to a Gloomy Week
Strong jobs number helped take the edge off disappointing consumption, autos, and other data this week.
A respectable employment report at the end of the week provided great relief to many economists who were still a bit stunned from the negative data earlier in the week.
Motor vehicle sales continued to be the biggest disappointment, showing year-over-year declines yet again, despite some healthy incentives. The slow motor vehicle sales data was particularly disappointing in light of production rates that have not fallen nearly as fast. While some of the inventory buildup was intentional to enable shutdowns for plants to convert to more SUV production, we were still quite shocked to see one of the Big Three with inventory levels of over 100 days, levels not seen since the last recession.
Robert Johnson, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.