Consumer sentiment about the U.S. economy is showing modest improvement, according to new preliminary data released Friday from the University of Michigan.
The July reading marks the highest level in five months, though it remains well below where it stood at the end of last year.
“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 going before I really get strong again,” Rebecca Homkes said.
Homkes, who teaches at the London Business School, explains that consumer sentiment serves as a key indicator for economic forecasting.
“One of our best leading indicators of the stuff that really matters for making decisions is how the consumer’s 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,…
