U.S. consumer confidence soared in June to its highest level since the coronavirus outbreak last year, according to a report released by the Conference Board on Jun 29. The jump in June once again shows the growing confidence of millions in the nation’s economy and that it is on the right track for a faster-than-expected recovery.
The massive vaccination drive and the second round of fiscal stimulus have given people’s confidence a further boost.
Consumer Confidence Jumps in June
The Conference Board said on Jun 29 that the consumer confidence index jumped to a reading of 127.3 in June from 120 in May. This is also the highest level since February 2020, when the pandemic struck the United States.
The jump in consumer confidence also shows that people are now more open to taking the COVID-19 vaccine and are spending more on services that will help the economy bounce back at a faster pace.
The measure of consumer sentiment surrounding the current situation, which is based on consumers' gauge of current business and labor market conditions,increased to 1567.7 in June. This is also the highest level since the pandemic struck the country. Also, the measure of expectations jumped to 107 in June.
Among those surveyed, 54.4% feel that job opportunities are huge. The gauge increased to a 21-year high. Also, 18.6% believe that individual income will increase over the next six months, hitting a 21-year high.
Stimulus, Higher Vaccinated Rate Drive Confidence
Consumers are more confident after taking the vaccine and receiving the fiscal stimulus. This has given them more spending power. Moreover, the massive vaccination drive has raised hopes of a faster-than-expected economic recovery.
As new cases continue to fall, many states have started easing restrictions, thus boosting the job market. This has significantly improved consumers’ assessment of the current conditions and the short-term outlook. Moreover, with restrictions eased, people arestepping out of their homes more freely and planning holidays.
The report also shows that 37.4% of the people surveyed plan to take a vacation in the next six months, the highest since October 2020. The share of people planning holidays abroad also increased to pandemic highs.
Given this situation, consumer discretionary stocks seem to be an ideal sector to invest in. The Consumer Discretionary Select Sector SPDR’s (XLY) has returned 10.7%year to date.
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the complete list of today’s Zacks #1 Rank stocks here. Party City Holdco Inc. ( PRTY Quick Quote PRTY - Free Report) is involved in the design, manufacture and contracts for manufacturing and distribution of party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days. Party City has a Zacks Rank #2.
Spectrum Brands Holdings Inc. ( SPB Quick Quote SPB - Free Report) offers a portfolio of leading brands in several product categories like residential locksets, plumbing, electric shaving and grooming products, personal care products, small household appliances, specialty pet supplies, and lawn, garden and home pest control products and repellents.
The company’s expected earnings growth rate for the current year is 54.2%. The Zacks Consensus Estimate for current-year earnings has improved 16.6% over the past 60 days. Spectrum Brandssports a Zacks Rank #1.
OneWater Marine Inc. ( ONEW Quick Quote ONEW - Free Report) is a premium recreational boat retailer functioning principally in the United States. It offers products and services, which include the sale of new and pre-owned boats, parts and accessories, finance and insurance products, maintenance and repair services, and ancillary services.
The company’s expected earnings growth rate for the current year is 67.4%. The Zacks Consensus Estimate for current-year earnings has improved 17.2% over the past 60 days. OneWater Marines sports a Zacks Rank #1.
Pool Corporation ( POOL Quick Quote POOL - Free Report) is the world's largest wholesale distributor of swimming pool supplies, equipment and related products. In addition, the company is a leading regional wholesale distributor of irrigation and landscape products.
The company’s expected earnings growth rate for the current year is 45.8%. The Zacks Consensus Estimate for current-year earnings has improved 8.4% over the past 60 days. Pool Corporation has a Zacks Rank #2.
YETI Holdings, Inc. ( YETI Quick Quote YETI - Free Report) designs, markets and distributes products for the outdoor and recreation market under the YETI brand primarily in the United States. The company's products are designed for use in outdoor activities, including hunting, fishing, camping, barbecue, and farm and ranch activities among others.
The company’s expected earnings growth rate for the current year is 26.2%. The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the past 60 days. The company has a Zacks Rank #2.
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