Consumer sentiment about the U.S. economy is showing modest improvement, according to new preliminary data released Friday from the University of Michigan.

Washington

A recent survey from the University of Michigan indicates that Americans are feeling marginally better about the economy, with consumer sentiment reaching its highest level in five months. However, overall confidence remains lower than it was at the end of the previous year, and many consumers still seek greater certainty about economic conditions before feeling fully optimistic.

Retail sales data shows continued consumer spending, with a slight increase in June compared to May. Meanwhile, Americans are split on the effects of a new Republican-backed tax and spending bill, with about two-thirds believing it will mostly benefit the wealthy. The Federal Reserve's upcoming interest rate decision is also drawing attention, especially amid public criticism from former President Trump towards Fed Chair Jerome Powell.

Americans feeling slightly better about economy, new survey shows

And Americans are feeling marginally better about the economy even as businesses try to figure out what to expect at the next Trump tariff deadline. National correspondent Katie Atalban joins us live now and talking about the economy which we have seen Katie for the last few election cycles is a really big issue for Americans across the country. That's right Stephanie a really big issues for Americans especially as most Americans say the economy is the most important issue for them. New data out today tells us how Americans are feeling about it plus how people think of Republicans new spending bill will impact their bottom line. U.S. consumers are beginning to feel a little bit better about the economy. Consumer sentiment up marginally in July from a month ago according to new preliminary data out Friday from the University of Michigan. It's the highest reading in five months but consumer sentiment is still well below what it was at the end of last year. So we're seeing a consumer that's saying I'm feeling okay but still a little bit shaky and I want a little more certainty about where the economy is gonna be before I really get strong again. Rebecca Humkast teaches in the London Business School and says consumer sentiment helps to predict where the economy may be headed. One of our best leading indicators of the stuff that really matters for making decisions is how the consumer is feeling because if they feel strong they spend that goes through the economy when they feel more pessimistic about their jobs or spending they spend less and that starts to loop through the economy. Despite muted feelings about the economy consumers are still spending right now. New data out this week shows retail sales rose more than half a percent in June compared to May. Separately Americans are divided over how the massive new tax and spending legislation passed by Republicans could impact their pocket book. I have a feeling that this new bill regardless of the good and bad in it is going to make this country great in the next three plus years. I do not like that it continues to support the billionaires instead of the working class people of America. About two-thirds of US adults say it will mostly help the wealthy. Democrats were more likely to feel that way but nearly half of Republicans said the same. Now the next major date to have circled on the calendar that could impact the economy is July 30th that's when the Federal Reserve will announce its its next interest rates decision. Now on Thursday one Fed board member said that he thinks the the bank should cut interest rates at this next meeting but most Fed members have endorsed keeping them the same. Stephanie. Well Katie you just mentioned the Federal Reserve the chair of the Fed Jerome Powell certainly been in a bit of a feud if you will and taking a lot of ire from President Trump anything new on that relationship or what might come from that? Well just today Stephanie we saw President Trump continue his name-calling of Powell as well as calls for him to lower interest rates. On a social media post today Trump called Powell a numbskull and said interest rates should be at one percent. Currently they're between four and a quarter and four and a half percent. Stephanie. One percent would be a very big jump and the Fed usually moves much more conservatively than that. National correspondent Katie Tubman thank you for us. Thank you.

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Damascus

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Breakdown