The underlying strength of the economy is becoming more evident as the most recent indicators suggest that the pause in growth during Q1 was an outlier. May marked the 63rd consecutive month of private-sector job growth, extending the longest streak on record. Wage growth increased slightly in May, and it has increased by 2.3 percent over the last 12 months. Retail sales increased in May, signaling that consumers are feeling more confident after seeing their incomes edge up over the last quarter.

Analysts suggest that Q2 growth will rebound from low Q1 results that were likely due to unusually high levels of snowfall and other temporary factors. Forecasts for Q2 annual growth range from 1.9 to 2.6 percent. In the second half of the year, the economy is expected to grow at an annual rate of 3 percent.