5 Stocks To Buy On Record Consumer Confidence In September

Consumer confidence rose appreciably in September, reflecting the strength of domestic consumption. This is an indication that the economic recovery will continue at a steady pace. Additionally, the country seems to be largely unaffected by the upcoming elections, dispelling concerns over any uncertainty.

Ahead of the holiday season, it seems that the engine of U.S. growth will continue to perform satisfactorily. This makes it a good time to pick stocks likely to benefit from growing optimism among consumers.

Confidence Rises to Nine Year High

Consumer confidence increased from the level of 101.8 recorded in August to 104.1 in September. This was the highest level recorded since Aug 2007, which is usually considered to be the beginning of the recession which extended over the next two years. Augusts’ reading for the current year was revised upward.

Almost all the details of the current report are encouraging. The Present Situation Index increased from 125.3 to 128.5. Also, the Expectations Index rose from Augusts’ level of 86.1 to 87.8. Meanwhile, the share of respondents who believe that jobs are plentiful moved up from 26.8% to 27.9%.

Upbeat Job Market, High Presidential Approval

A buoyant job market is making a real difference to consumer confidence, as is borne out by this report. Following a disappointing jobs report for August, the employment rate stood unchanged at 4.9% instead of declining as was widely expected. However, this rate is still marginally shy of half of the peak of 10% achieved during the last recession.

Additionally, the last two years have been the best for job growth in nearly 17 years. Low fuel prices have also been aiding the situation. They have helped to increase purchasing power and made more money available for other purchases.

Also, President Obama’s ratings have increased to 53%, according to a Gallup survey. This is significantly higher than the level of 40 recorded two years ago and is another indicator of the optimism prevailing in the economy. There was some concern that an election may have led to an unwelcome uncertainty. Now such thoughts can easily be ignored.

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