Power Play: Rebound in consumer spending

Shoppers looking at Michael Kors bags at Macy's in New York.
Scott Mlyn | CNBC

One of the biggest concerns this year is the drop in consumer spending despite the money saved from lower oil and gasoline prices.

But Brian Peery, co-portfolio manager of the Morningstar 5-star rated Hennessy Cornerstone Mid Cap 30 Fund, tells CNBC's "Power Lunch" on Monday, he sees a breakout in consumer spending later this year.

"Consumers sentiment came in near the highs for the last eight years (second highest). With consumers upbeat about the economy and their current financial situations we believe spending should pick up during the second or third quarter," Peery said.

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Peery sees an improvement on big-ticket items outside the restaurant and leisure sectors. However, even with a rebound in spending, Peery warns there are major changes underway.

"We continue to believe that household spending habits have changed from 'buy what I want' in the early 2000's to 'buy what I need' since the Great Recession, and that means that shoppers will continue to seek out discounts," Peery said.