It is clear the demand for goods is strong, although consumer spending has shifted toward services as opposed to products. Consumer spending is an important gauge of economic health as it accounts for nearly three-quarters of all activity throughout the country. An increase in consumer spending is a sign the economy is transitioning to a higher gear.
The jump in retail sales is significant for apparel companies as heightened retail activity bodes well for clothing sales. Add in the fact that society is reopening, meaning people will spend more time socializing with others while rocking stylish threads, and there is even more reason to invest in apparel stocks. Three such stocks are Ross Stores (ROST), TJX Cos. (TJX), and Burlington Stores, Inc. (BURL).