Despite rising inflation, heightened consumer spending during the holiday season should drive the consumer goods industry’s sales growth in the near term. Therefore, prominent consumer goods stocks Procter & Gamble (PG) and Colgate-Palmolive (CL) should benefit. Which stock is better to buy right now? Read more to find out.The Procter & Gamble Company (PG) and Colgate-Palmolive Company (NYSE:) are two prominent companies in the consumer goods industry. PG is based in Cincinnati, Ohio. It sells packaged products through mass merchants, ecommerce, grocery shops, membership clubs stores, drugstores, department stores and department stores. The company operates in five business segments—beauty; grooming; health care; fabric & home care; and baby, feminine & family care. CL, based in New York City, sells consumer products under the oral, personal and homecare segments. The company markets its products to numerous retailers, wholesalers and distributors.

The resurgence in COVID-19 cases and rising inflation have caused U.S. retail sales to rise since August. There has been a 1.7% increase month-over-month in October, due to falling jobless claims as well as rising consumer spending before the holidays.

Inelastic consumer demand across all business cycles is helping to offset high inflation. Investor optimism in this space is evident in the First Trust Consumer Staples AlphaDEX ETF’s (FXG) 3.7% gains versus SPDR S&P 500 Trust ETF’s (SPY) 3.3% returns over the past month. Global consumer goods market (FMCGs) is projected to expand at 5.4% CAGR and reach $15.36 trillion in 2025. Both CL and PG will benefit.

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