- May 2025 Zeta Economic Index shows a stable consumer economy despite cooling activity.
- Retail activity increased by 2.9% month-over-month, while browsing behavior declined significantly by 42.7%.
- The Economic Stability Index rose 1.3% quarter-over-quarter, indicating solid financial footing for households.
The Zeta Economic Index (ZEI) for May 2025, released by Zeta Global (ZETA, Financial), reveals that the consumer economy is experiencing stable yet cautious behavior. While overall activity has cooled slightly from Q1, financial stability continues to improve. The ZEI's headline score stands at 68.9, reflecting a modest 0.3% month-over-month dip. However, the Economic Stability Index rose by 1.3% quarter-over-quarter, suggesting that households remain on solid financial ground even as consumer sentiment shows signs of softening.
Retail activity observed a notable 2.9% month-over-month increase, driven by a rise in sales activity and foot traffic as families engage in early summer purchases and seasonal shopping. However, browsing behavior showed a significant decline of 42.7% month-over-month, indicating a more cautious and selective spending approach by consumers. On the other hand, credit indicators displayed a healthy 5.1% increase, suggesting that consumers maintain robust purchasing power.
Sector-specific data from the ZEI indicates diverse consumer preferences. Retail experienced a 7.5-point month-over-month increase, driven by rising sales and foot traffic. The Entertainment sector also posted gains, up 3.2 points month-over-month, reflecting increased engagement in live events and seasonal activities. Conversely, the Healthcare sector declined by 8.0 points, likely due to recent policy changes and pricing transparency rules affecting consumer decision-making. The Travel sector also decreased by 2.3 points, indicating a preference for local experiences over larger travel commitments.
David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta Global, remarked, "The ZEI isn't showing an economic slowdown – it's a shift. Consumers remain active but are being more thoughtful about how and where they spend. Real-time behavioral data is crucial, providing insights that traditional reports miss and enabling marketers to turn uncertainty into a competitive advantage."
