Recent macroeconomic data has highlighted the impact of factors including government stimulus, labor market weakness and households struggling with debt.
But the May employment report may overstate labor force weakness, some economists said, and may be encouraging too much euphoria.
"We are seeing continuing labor market weakness, but it still doesn't appear to be completely rolling over".
"But such spillover effects will not be large enough to prevent a prolonged period of sluggish consumer spending and labor market weakness".
"The worst of the layoffs and the labor market weakness is behind us," said Tim McGee, chief strategist at UFJ Bank in New York.
Richard McGuire, a strategist at RBC Capital Markets in London, said that labor market weakness and related downward pressure on wages would "dampen any possible recovery, while keeping the risk of a renewed slowdown in view".
"Financial distress on the part of many households, ongoing labor market weakness and vicious competition from an enormous overhang of existing homes all point to a very tough slog for home builders in the months and quarters ahead," Joshua Shapiro, the chief United States economist for MFR Inc., said.
"Much will depend on the consumer," Joshua Shapiro, chief United States economist at MFR, wrote in a research note, "and we feel that the headwinds for consumer spending (the foremost of which are ravaged balance sheets and lingering labor market weakness) remain too brisk to expect much help on this front".
"Much will depend on the consumer, and we feel that the headwinds for consumer spending (the foremost of which are over-leveraged balance sheets and lingering labor market weakness) remain too brisk to expect substantial help on this front as the year progresses," Joshua Shapiro, chief United States economist for MFR Inc., wrote in a research note.
"Financial distress on the part of many households, ongoing labor market weakness and vicious competition from an enormous overhang of existing homes all point to a very tough slog for home builders in the months and quarters ahead," said Joshua Shapiro, the chief United States economist for MFR Inc.
