6 Growth Mutual Funds To Gain From US Economic Rebound

Recently released economic data indicates that the U.S. economy is on track to witness a far better second half compared to the first this year. Also, the U.S. benchmarks have rebounded remarkably since Donald Trump’s victory in the presidential election to hover around their all-time record highs. In this scenario, it may be ideal for investors to allocate significant portions of their assets in mutual funds that have impressive growth potential.

Improving Manufacturing & Labor Market

The ISM Manufacturing Index reading released this month showed that the manufacturing sector is on a strong footing. While most of the PMI readings came in higher than 50, pointing to an expansion in activity, ISM purchasing manufacturers’ index grew to 51.9 in October from 51.5 in September. Despite being down, ISM Services Index remained above 50%, indicating expansion in the services sector. Separately, factory orders increased for the third consecutive month in September.Orders increased 0.3% in September after advancing 0.4% in August.

Meanwhile, average hourly earnings increased 10 cents or 0.4% to $25.92 last month, which was preceded by an increase of 8 cents witnessed in September, according to the U.S Department of Labor. Also, it surged 2.8% year on year, which was the biggest rate of increase since Jul 2009. The unemployment rate also declined 0.1 percentage point last month to 4.9%. Moreover, jobless claims number remained below the psychological level of 300,000 for 90 consecutive weeks.

Positive Consumer Spending

Consumers in the U.S also played an important role in boosting the economy in recent months. Personal consumption expenditure rose 0.5% in September in contrast to a decrease of 0.1%in August, according to the Commerce Department. Consumer spending rose at its fastest level in last three months. Moreover, retail sales jumped 0.8%in October following are revised 1% increase in the previous month,alsohigherthantheconsensusestimateof0.6% rise.It was the best two-month gain registered in more than two years. Also, consumers are likely to have spent wholeheartedly during the Thanksgiving holiday season, which is expected to help the economy to expand further during the ongoing quarter.

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