Overall, aside from a shortening in average working hours, the March report was on the firmer side and will keep expectations for a 50bps hike at the next FOMC alive. While growth in aggregate hours worked over the quarter was healthy at 3.6% annualized, economic growth isn't likely to top 2% annualized in Q1 given that the sectors rebounding from Covid restrictions are those with lower productivity. Still, this report is strong enough to justify a 50bps hike at the next FOMC given the progress on unemployment and the wages figures. - CIBC
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