August Zeta Economic Index Shows Households Rebalancing, Not Retreating
Selective pullbacks in non-essentials are offset by rising intent in key growth indicators, keeping the ZEI in the "Active" range
Zeta Global (NYSE:ZETA), the AI Marketing Cloud, today released the August 2025 Zeta Economic Index (ZEI), a real-time read on U.S. consumer behavior powered by generative AI and signals from over 245 million consumers. August's ZEI finds households rebalancing, not retreating. Non-essential spend eased while forward-looking intent, including online browsing engagement and new-mover signals, picked up, aided by back-to-school planning across apparel, electronics, and dorm essentials. The result is a stabilizing macro backdrop with activity holding in the "Active" range.
Unlike survey-based gauges or lagging reports, the Zeta Economic Index synthesizes over 20 proprietary signals including spend, browsing, credit, and life-event indicators to reveal intent before it becomes spend.
The Economic Index Score fell 0.9% month-over-month (MoM) to 67.2, marking its fifth straight monthly decline as consumers recalibrate spending and borrowing, a continuation of July's trends. Households in August showed sharper rebalancing than in July, with clear signals of pullback in big-ticket categories. Discretionary Spend Propensity dropped to 5.7% MoM, extending summer's downtrend as households trimmed non-essential purchases. Credit Line Expansion Intent fell 22.8% MoM, its steepest retreat in recent months, signaling that consumers are hitting pause on borrowing appetite. Yet, on a year-over-year (YoY) basis, intent is up 9%, pointing to a more resilient underlying trend.
August sector trends reinforce the pattern of selective consumer behavior:
- Retail rose 4.0 points MoM, as in-store activity increased, and consumers shifted from splurge to staple purchases with back-to-school driving a clear mid-August spike.
- Travel fell 5.0 points MoM, reflecting a post-summer cooldown in bookings and mobility.
- Automotive slipped 4.0 points MoM, with an overall 20-point decline YoY as part of the larger pullback in big-ticket categories.
- Dining saw a 3.0-point MoM lift reflecting seasonal leisure spend, a category that has also seen a 13-point YoY increase.
- Financial Services and Healthcare each declined 3.0 points MoM, indicating a recent reduced appetite for credit products and elective care.
- Technology edged down 1.0 point MoM after recent bursts of consumer enthusiasm.
Labor market uncertainty is also weighing on consumer confidence. Job Market Sentiment weakened 3.6% MoM, while Automotive Purchase Intent declined 7.1% MoM, amplifying the signals of pullback in big-ticket commitments.
Yet the consumer isn't stepping back entirely. August data also revealed positive offsets:
- Time Browsing Online rose 4.7% MoM, consistent with digital planning and pre-holiday engagement.
- Out of Home Movement climbed 2.0% MoM, suggesting Americans continue to spend in the physical world despite tightening budgets.
- Retail Visitation Index inched up 2.2% MoM, a modest but notable increase given declines in discretionary categories.
"Right now, consumer strength isn't about spending more, it's about spending smarter," said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta Global. "ZEI's real-time behavior signals cut through seasonal noise, including back-to-school, to show where demand is forming next. Marketers who act on these leading indicators will capture growth while others wait on lagging reports."
As households navigate fall preparation amid ongoing economic uncertainty, the data shows not just changing purchase patterns, but evolving priorities shaped by both immediate needs and longer-term caution. The overarching result is a consumer who is selective and thoughtful rather than impulsive, reallocating spend instead of reducing activity.
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.
About Zeta Global
Zeta Global (NYSE:ZETA) is the AI Marketing Cloud that leverages advanced artificial intelligence (AI) and trillions of consumer signals to make it easier for marketers to acquire, grow, and retain customers more efficiently. Through the Zeta Marketing Platform (ZMP), our vision is to make sophisticated marketing simple by unifying identity, intelligence, and omnichannel activation into a single platform – powered by one of the industry's largest proprietary databases and AI. Our enterprise customers across multiple verticals are empowered to personalize experiences with consumers at an individual level across every channel, delivering better results for marketing programs. Zeta was founded in 2007 by David A. Steinberg and John Sculley and is headquartered in New York City with offices around the world. To learn more, go to www.zetaglobal.com.
Forward-Looking Statements
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning our anticipated future financial performance, our market opportunities and our expectations regarding our business plan and strategies. These statements often include words such as "anticipate," "believe," "could," "estimates," "expect," "forecast," "guidance," "intend," "may," "outlook," "plan," "projects," "should," "suggests," "targets," "will," "would" and other similar expressions. We base these forward-looking statements on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at such time. Although we believe that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our business, results of operations and financial condition and could cause actual results to differ materially from those expressed in the forward-looking statements. These statements are not guarantees of future performance or results.
The forward-looking statements are subject to and involve risks, uncertainties and assumptions, and you should not place undue reliance on these forward-looking statements. These cautionary statements should not be construed by you to be exhaustive and the forward-looking statements are made only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250902941473/en/
Investor Relations
Matt Pfau
[email protected]
Press
Candace Dean
[email protected]