The numbers: A survey of consumer sentiment rose slightly to 51.1 in July from an all-time low, but Americans were still deeply worried about high inflation and talk of a possible recession.
The sentiment survey fell to 50 in June to mark the lowest level since it began being published on a monthly basis in 1978. The report is produced by the University of Michigan.
Americans also expect high inflation to persist. They see prices rising 5.2% over the next year, down from 5.3% in June.
The Federal Reserve cited the increase in inflation expectation in the report last month as one of the reasons it raised a key U.S. interest rate by 0.75 percentage points in June.
Big picture: Americans are upset about the highest inflation in nearly 41 years . They are paying more for food, gas, rent and most other goods and services.
The Federal Reserve is raising interest rates aggressively to try to cool off the economy and tame the surge in prices. But the central bank risks triggering a recession if it raises rates too high, adding to the angst of consumers.
Key details: A gauge that measure what consumers think about their own financial situation and the current health of the economy rose to 57.1 from 53.8.
Yet another measure that asks about expectations for the next six months slipped to 47.3 from 47.5, signaling that Americans are worried about a deterioration in the economy toward the end of the year.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
rose sharply in Friday trades amid of flurry of news suggesting the economy is still in decent shape.
