Thursday, July 6, 2017

Auto plant retooling causes miss on unemployment

Automakers lay off in July, evidently for retooling.  Normal practice.  Some automakers likely will extend the shut down due to poor sales.  This is not necessarily a real negative, yet.

Unadjusted claims for Michigan increased 1,159 last week.
Automakers normally shut assembly plants for annual retooling at the start of July, which tends to push up claims.
Applications are likely to remain elevated as some companies like General Motors (GM.N) embark on extended summer shutdowns to deal will slower sales, which have led to an inventory bloat.

Motor vehicle manufacturers reported on Monday that auto sales fell in June for a fourth straight month. Even before the annual summer plant closures, automakers have been laying off workers in response to the softening demand.

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