Zeta Economic Index (ZEI) Shows Consumers in Holding Pattern as Stability Rises and Activity Cools
May ZEI Indicates Stable Financial Footing and Selective Spending, Despite Moderating Activity
The Zeta Economic Index leverages Zeta’s proprietary Generative AI to analyze trillions of behavioral signals from over 245 million
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
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.
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.
The Zeta Economic Index is publicly available here and is provided as a complimentary service. It should not be considered investment advice or be relied upon to make investment decisions.
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