January's Zeta Economic Index (ZEI) Shows US Economy Holding Steady Heading into 2025

Consumer Spending Remains Resilient Post-Holiday, With Dining Activity Up and Retail Facing Seasonal Headwinds

Zeta Global (NYSE:ZETA), the AI Marketing Cloud, today released the Zeta Economic Index (ZEI) for January 2025. Powered by Zeta's proprietary Generative AI technology and real-time consumer behavior from over 245 million US consumers, the ZEI provides an unparalleled view of the strength and momentum of the US economy.

Following the surge in consumer spending during the 2024 holiday season, the US economy appears to be holding steady at the start of 2025, despite an expected post-holiday correction from retail. One bright spot is the dining sector, which saw a 4.1 point increase month-over-month (MoM) in activity, fueled by seasonal trends such as gift card redemptions and colder weather driving demand for takeout.

The Economic Index Score (EIS), the ZEI's primary measure of US economic health, dipped slightly to 70.9, a 0.8% month-over-month (MoM) decrease, as the economy recalibrates post-holiday spending. Despite the decline, the EIS remains higher than average 2024 levels reinforcing the economy's solid footing. The Economic Stability Index (ESI) increased to 66.9, marking a 0.6% QoQ increase, underscoring consumer spending resilience.

"It's an encouraging signal for the year ahead that the economy looks this strong in a month when consumers typically pull back on spending," said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta Global. "The ZEI provides a real-time, behavior-driven view of economic conditions in the US offering business leaders a valuable tool to navigate 2025 investment. In the coming months, we'll be closely monitoring whether consumers reignite their spending patterns or maintain a more cautious approach."

Additional highlights from the January 2025 ZEI:

• Consumer Spending Remain Strong: Discretionary spend propensity rose 4.6% MoM. Similarly, credit line expansion intent edged up .6% MoM, showing a steady, albeit cautious, appetite for borrowing.
• Dining Sales Are Up: Consumer interest in dining made a strong comeback in January, marking the biggest MoM gain across industries. Following a rise in gift card sales during the holiday season, consumers appear to be eager to redeem them sooner rather than later, with a 4.1 point increase for the sector.
• Cold Winter Impacts Retail Activity: Retail activity declined 3.9 points MoM, possibly attributed to the deep freeze most of the nation experienced in January. Historically, colder winter months negatively affect retail almost immediately, especially in small businesses as they opt to close rather than pay employees for little to no customers.
• Healthcare Activity declines: Healthcare activity declined, falling 3.9 points. As consumers navigate new coverage rules and reset deductibles, policy changes in corporate insurance plans at the start of the year are likely a factor in the decline. Additionally, some uncertainty may stem from recent headlines around government stance on vaccines and healthcare policy, which could add to broader consumer hesitancy.
• Job Market Sentiment Drops Sharply: A drastic decline of 19.6% MoM could indicate rising concerns over job security, hiring freezes, or shifting employment dynamics—particularly as many jobs face uncertainly as the new administration begins to implement new policies.

Unlike traditional surveys, the ZEI leverages Generative AI to analyze trillions of behavioral signals, recalibrating each month to reflect actual consumer activity. With insights derived from over 20 proprietary inputs, the index provides a comprehensive, real-time view of economic sentiment, activity and spending trends.

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.

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