U.S. consumer confidence leaped in March to the highest level since Dec 2000 amid growing labor market optimism. Prospects of lower taxes and uptick in infrastructure outlays since the election of President Donald Trump propelled consumer sentiment to fresh highs.
Since Americans grew optimistic about the economy, things have been looking up for consumer stocks as well. Stocks of consumer discretionary companies are poised to grow on the signs of renewed consumer spending strength.
Consumer Confidence Tops Forecasts
As per the Conference Board, the consumer confidence index jumped to 125.6 in March from 116.1 in February, surpassing the consensus expectation of 113. Consumer confidence touched the highest level in more than 16 years, indicating that the economy is regaining momentum. Lynn Franco, director of economic indicators, of the Conference Board said that “consumers feel current economic conditions have improved over the recent period, and their renewed optimism suggests the possibility of some upside to the prospects for economic growth in the coming months”.