US: Jobs creation points to a rebound in Q2 - CIBC

Analysts at CIBC Capital Markets, forecast the US economy will grow at a 1.1% (annualized rate) during Q1, 2.3% in Q2, 2.2% in Q3 and 1.3 in Q4. 

Key Quotes: 

“The US economy likely eked out a 0.6% gain in Q1, reflecting the negative impact of the government shutdown on consumer spending which would have compounded the effects of higher interest rates. Business investment indicators have also looked uninspiring lately, but the stabilization in the price of oil at a level above December’s lows could be a supportive for investment in the energy sector.”

“The trend pace of job creation suggests that a rebound in growth will be in store for Q2, with subdued inflationary pressures also supportive of real wages and therefore consumer spending.”