Zeta Economic Index: Stability Up, Consumer Activity Down

Zeta Global, the AI Marketing Cloud, released its May 2025 Zeta Economic Index (ZEI), revealing the consumer economy is in a steady, but cautious, holding pattern. While overall activity has cooled from Q1, financial stability continues to build. The ZEI’s headline score held firm at 68.9, reflecting a modest 0.3% month-over-month dip, while the Economic Stability Index rose 1.3% quarter-over-quarter, suggesting households are on solid footing, even as sentiment softens.

The Zeta Economic Index leverages Zeta’s proprietary Generative AI to analyze trillions of behavioral signals from over 245 million U.S. consumers, offering a unique lens into real-time consumer activity. Unlike traditional surveys, ZEI derives insights from over 20 proprietary inputs, offering an unparalleled view of economic sentiment, trends, and spending patterns.

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The May ZEI reflects that consumers remain engaged but are increasingly selective. Retail activity ticked up 2.9% month-over-month (MoM), and credit indicators remained healthy, increasing 5.1% MoM. At the same time, browsing behavior dropped significantly (42.7% MoM), suggesting that consumers are still spending but with more caution and less spontaneity. It’s a continuation of recent trends: a recalibration shaped by seasonal shifts and ongoing uncertainty.

“The ZEI isn’t showing an economic slowdown – it’s a shift,” said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta Global. “Consumers are still active, but they’re being more thoughtful about how and where they spend. That’s why real-time behavioral data is so critical right now – it reveals intent long before it shows up in traditional economic reports. In moments like this, access to timely insight can help marketers turn uncertainty into competitive advantage by acting with clarity when others are waiting.”

Other indicators tell a story of cautious progression. The New Mover Index rose 2.6% after several months of stagnation, hinting at early-stage life transitions beginning to pick back up. Yet Job Market Sentiment declined slightly (–0.8% MoM) and remains notably down year-over-year, suggesting that underlying concerns about job security or wage growth haven’t fully eased.

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Economic Breakdown by Sector

May’s sector performance reveals a clear pattern of consumer selectivity, with households prioritizing essential and experiential categories while pulling back from certain other discretionary areas:

• Retail emerged as the standout performer with a 7.5 point MoM increase, fueled by rising sales activity and foot traffic as households leaned into early summer purchases and seasonal shopping patterns.
• Entertainment posted a solid 3.2 point MoM gain, reflecting increased engagement with live events, streaming, and seasonal social activities as consumers prioritize experiential spending.
• Healthcare experienced an 8.0 point MoM decline, likely influenced by recent healthcare pricing transparency rules and ongoing policy changes that are creating consumer uncertainty in medical spending decisions.
• The Travel sector’s 2.3 point MoM decrease suggests that consumers are opting for more local experiences over larger travel commitments, possibly reflecting value sensitivity and budget consciousness.
• Technology dipped 1.5 points MoM, indicating a natural correction from previous spikes as consumers have become more selective about tech purchases and upgrades.

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Source – Businesswire

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