Planned Layoffs Drop To Lowest Levels In One Year

Increasing strength in the labor market is the indication from Challenger's job-cut count, falling to 38,845 in July versus 41,977 in June for the lowest total since August last year. Yet weakness in manufacturing and related equipment investment, not questions in the labor market, is what the Federal Reserve cited as central to yesterday's rate cut and here the news is not upbeat. Industrial goods announced 4,403 layoffs in the month and has been at the very top of the industry layoff list all year. Today's report directly blames 1,000 of July's layoffs on the impact of tariffs. But tariffs and global issues aside and focusing specifically on the strength of domestic demand, this report is very favorable and points to another strong employment report for tomorrow.