May jobs report could show robust growth
The arrival of spring-like temperatures probably brought a rebound in job growth in May following a couple of lackluster months.
Americans’ outlook on the economy and financial conditions has hovered near 18-year highs as solid job and income growth and federal tax cuts offset worries over rising gasoline prices and U.S. trade skirmishes. Economists expect the Conference Board on Tuesday to report that its index of consumer confidence dipped in May but remained at a lofty level.
The economy slowed in the first quarter to a 2.3% annual pace from about 3% in the final nine months of
2017. But the pullback wasn’t as sharp as anticipated. In its second estimate, the Commerce Department will likely find that consumption was even softer than believed while business investment was a bit stronger, says Nomura economist Lewis Alexander. All told, economists expect Commerce on Wednesday to leave its first-quarter growth estimate unchanged at 2.3%.
All signs have pointed to a pickup in consumer spending in the second quarter. Economists expect Commerce on Thursday to report that consumer spending broadly increased
0.4% again in April.
On Friday, the Labor Department releases its jobs report. In April, cooler temperatures helped limit payroll gains. Economists figure the labor market is due for a comeback in May, estimating 190,000 jobs were added.