The stronger-than-expected March jobs report signals the worst of the economic slowdown may be over, but more bumps still lie ahead, two analysts told Liz Claman on “Morning Call.”
“We’re hitting bottom on the economic growth and we should expect more positive surprises as the year progresses,” said Lakshman Achuthan, managing director at the Economic Cycle Research Institute.
The Labor Department said Friday that 180,000 new jobs were created in March, amid a surprise surge in construction jobs. Economists had expected a gain of 135,000 jobs. The unemployment rate, meanwhile, fell to 4.4%.
But you can expect more negative data ahead, including a weak reading on first-quarter GDP, says David Kelly, managing director and senior economic advisor at Putnam Investments.
“I think the economy will strengthen in the second half of the year, but I think there is some bad economic news to deal with before we get there,” Kelly said.