Stocks Show Heartening Rise as Consumer Optimism Grows

As signs of improvement on the employment scene become evident, the optimism in the stock market appears to be growing too. Increased demand in the service industry is contributing to confidence among investors.

A government report, which was released late last week showed how the employment scenario was finally witnessing a change for the better after a long haul of three subdued years. In March, the biggest job gain in the year was recorded. Although more private employers were seen adding to their employee roll as opposed to the government affiliated organizations, optimism has not been dampened by this fact.

On the contrary, the fact disproves fears that the recent census activity, which requires the temporary recruitment of many citizens would artificially add to the employment figures and depict a better picture than that exists. About 162,000 jobs were augmented in March, which though falling short of the 190,000 prediction by analysts was a heartening number as the major employers were private companies.

There have also been reports of increased demand both in service and housing sectors leading to the definite impression that the turnaround is finally here to stay. Yet another factor, which contributes to this view, is the improvement in the stock market. The growth of the stock market has been steady and has remained consistent over the last one year. The lack of volatile ups and downs in the prices is indicative of steadily growing belief in the soundness of the economy.

The stocks on the Wall Street responded positively to the employment growth figures and reflected the trend. While the Dow industrial average went up by 0.3%, the S&P 500 showed a 0.4% increase. The NASDAQ showed the biggest gains of 0.7%.

In another example of growing demand, Apple Inc reported impressive sales of its latest debut product – the iPad. The company reported 300,000 iPad sales on the day of the product launch itself. This included pre-orders placed by customers.

While unemployment rate continues to hover at around 9.7%, the predictions by analysts reflect hope and confidence of sustained recovery. Employment is critical to economic development as more job opportunities mean more spending power for the consumers. As purchasing power increases, demand follows and, production and industrial activity receives an impetus propelling the economy further.

According to global sources, demand appears to be increasing in other countries as well, which is a good thing for US exports too. Experts are confident that the coming months will strengthen the improvement in the economy and pave way for a resurgence in the industrial activity.

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