The two forecasting teams that came closest to predicting the U.S. economy would nearly stall in the first quarter expect other key economic data due this week to be strong.
This gives some support to the view — which some say is more hope than a forecast — that a snap-back is already taking place as the Federal Reserve and most other analysts expect.
UBS and First Trust Advisors both forecast the world’s largest economy grew by a meager 0.5 percent on an annualized basis during the first three months of the year.
All but a handful of the other 99 economists polled by Reuters over the past week expected growth of 1 percent or more, instead of the meager 0.1 percent reported.
FT Advisors has even revised up forecasts for Thursday’s ISM purchasing managers’ index for manufacturing and Friday’s non-farm payrolls releases. The Reuters consensus is for the ISM index to rise to 54.3 from 53.7, and for 210,000 new jobs in April after a gain of 192,000 in March.