With many economies slowly opening up, consumer sentiment has been on the rise.
Investors can see this as a virtuous cycle.
As economies reopen and more people are allowed to shop, the resultant demand generates revenue and cash flow for businesses.
And as businesses thrive again, they can also hire more staff, thus boosting spending ability and strengthening consumers’ propensity to spend.
The signs are there.
China, one of the first countries to reopen to a new normal post-pandemic, just logged GDP growth of 18.3% year on year for its first quarter, the fastest in three decades.
Singapore also reported its first GDP expansion after three quarters of contraction, delivering0.2% year on year growth in the first quarter.
Investors who are looking for businesses that latch on rising consumer spending should turn their attention to these three companies.
Delfi Limited (SGX: P34)
Delfi, which used to be known as Petra Foods, manufactures...