The measure of confidence that U.S. citizens vest in the domestic economy, also known as consumer confidence, rose in the month of August to its highest settlement in the last 18 years. Most of the surge has been attributed to strong employment prospects, high wages, and upbeat economic conditions. Notably, U.S. GDP logged its best growth in spring in the last four years.
High consumer confidence encourages spending in luxury as well as leisure goods, including swank apartments, new appliances, and cars. Under such encouraging conditions, it makes buying mutual funds that invest in leisure, discretionary and transportation companies prudent.
Consumer Confidence Highest Since 1990s
On Aug 28, the Conference Board reported a surge in consumer confidence among Americans for the month of August. The index rose to 133.4 in August, marking an uptick from 127.9 in July. The index scaled its highest level since October 2000, surpassing 130 in February, which was also its post-recession high.
Additionally, an average American’s confidence in the present situations improved from 166.1 last month to 172.2 this month, the highest level since 2000. The future expectations index also increased from 102.4 to 107.6.
U.S. GDP Growth Fastest Since 2014
According to the Department of Commerce’s second estimate, U.S. GDP increased at a 4.2% pace in the second quarter, reflecting an upward revision from 4.1% initially thought of. This is the sharpest pace of growth experienced since the 4.9% pace registered in the third quarter of 2014. Such developments also indicate that the economy is on track to achieve an annual growth of 3%, which President Trump had targeted. Additionally, for the first half of 2018, the U.S. economy expanded at 3.2%.
Strength in software investment and a reduction in import bill propelled the economic growth in the second quarter. This offset a minor downward revision to consumer spending.
3 Best Funds to Buy Now
Given such circumstances, we have highlighted three mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) that are poised to gain from such factors. Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
