Zeta Globals, Zeta Economic Index (ZEI) revealed that U.S. households are shifting their spending patterns rather than retreating entirely from the market. Powered by generative AI and insights from over 245 million consumers, the index serves as a real-time measure of consumer behavior, analyzing proprietary signals like spending, browsing, credit activity, and life events to project economic intent before purchases happen. While the overall Economic Index Score dipped by 0.9% month-over-month to 67.2 marking a fifth consecutive monthly decline this trend reflects consumer recalibration rather than withdrawal. Households eased non-essential spending and curtailed borrowing, particularly in big-ticket categories, yet showed increased engagement in forward-looking activities such as online browsing and new-mover signals, driven in part by back-to-school preparations.
Discretionary spending propensity dropped to 5.7% month-over-month as consumers became more selective about non-essential purchases. Credit line expansion intent fell sharply by 22.8%, indicating a pause in borrowing enthusiasm, though year-over-year metrics remain up 9%, suggesting an underlying resilience. Sector trends show varying consumer behavior: retail activity increased notably with more in-store visits focused on staples, supported by the back-to-school surge, while travel bookings eased following summer. Automotive spending declined both month-over-month and year-over-year, reflecting broader cutbacks on expensive items. Dining out experienced a boost due to seasonal leisure spending, and technology saw a slight decline after recent enthusiasm. In contrast, financial services and healthcare sectors showed reduced demand, echoing consumers’ cautious approach to elective care and credit products.
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Despite these pullbacks, consumers remained active in other areas. Time spent browsing online rose nearly 5%, signaling increased digital planning and engagement ahead of upcoming seasonal holidays. Physical movement outside the home grew modestly, and retail visitation also inched higher, underscoring that consumers are reallocating how and where they spend rather than cutting back drastically. Labor market uncertainties weighed on sentiment, with job market confidence softening and automotive purchase intent dropping noticeably. Overall, David A. Steinberg, CEO of Zeta Global, emphasized that consumer strength now lies in smarter spending choices rather than increased expenditure, urging marketers to leverage these timely indicators to capture emerging demand ahead of competitors.
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As economic uncertainty persists into the fall, the data illustrates consumers’ evolving priorities balancing immediate needs with cautious forward-looking behavior. Instead of retreating, households are thoughtfully rebalancing their budgets, signaling an adaptive economy where selective spending and strategic planning dominate.
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