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5 Retail Stocks To Buy On Renewed Consumer Confidence

Consumer confidence, which ebbed some time back, took an unexpected “U” turn in June, indicating that the economy remains well on track, barring a few hiccups. Though consumer confidence has largely receded from the highs it reached in March this year, analysts believe that it will improve once the policies announced by the current regime start taking shape and the picture becomes clearer.

For now, steady job additions, persistently low unemployment and gradual wage acceleration offer a perfect background to drive consumer confidence, a key determinant of the economy’s health. According to the recent Conference Board data, the Consumer Confidence Index rose to 118.9 this month from May’s reading of 117.6. We expect this positive sentiment to translate into higher consumer spending that may help revive sales.

U.S. retail sales in May recorded the steepest drop in 16 months. The Commerce Department stated that U.S. retail and food services sales in May fell 0.3% to $473.8 billion – following an unrevised reading of 0.4% growth registered in April – as people refrained from buying motor vehicles and spent less at gasoline stations, department stores and electronics shops. However, retail sales increased 3.8% from May 2016.

Nevertheless, the Retail-Wholesale sector still holds some promise, given the favorable...


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