Zeta Global (NYSE: ZETA), the AI-Powered Marketing Cloud, today released the Zeta Economic Index (ZEI) for October 2024. The ZEI is one of the first AI-powered economic indexes, utilizing Zeta's proprietary Generative AI technology and real-time consumer behavior from over 240 million US consumers to reflect the current state and trajectory of the US economy.
The ZEI’s primary measure of US economic health, the Economic Index Score (EIS) registered 68.5 points, essentially flat month-over-month and is defined as “Active”, which is characterized by robust economic activity with healthy growth across various sectors.
Moderate market sentiment can be attributed to disruptions from recent weather events such as hurricanes, labor strikes, and a tense political backdrop with the upcoming election. Core economic indicators remain stable, with steady gross domestic product (GDP) growth and a significant reduction in inflation contributing to a more positive outlook.
"The Zeta Economic Index is a real-time snapshot of the economic sentiment backed by Zeta’s proprietary data and gives us a view that may show some divergences of other backward-looking economic data,” said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta Global. “As Americans head to the polls, October’s snapshot gives us an economic index score that is essentially flat, heightened by recent natural weather events, labor strikes and the climate around the current election. What we do know though is that the economy is dynamic and with the upcoming holiday season quickly approaching, we still expect to see an uptick in the economy in the coming months.”
Additional highlights from the ZEI:
- Economic Indicators Show Stability with Positive Growth Outlook: GDP growth remains steady at 2.8%, bolstered by the Federal Reserve’s recent strategic 50-basis-point rate cut, which has positioned the federal funds rate between 4.75% and 5%. This proactive measure contributes to a more favorable borrowing environment. Additionally, inflation decreased to 2.4% in September, its lowest point in three years, which serves as a stabilizing factor for consumer pricing. These developments suggest a cautiously optimistic economic landscape, supporting ongoing consumer confidence and spending.
- Consumer Behavior Shifts to Non-Discretionary Spending and Increased Online Engagement: Discretionary spending saw a month-over-month decline of 1.6% as consumers shifted focus to essentials, reflecting a tactical balance between everyday needs and holiday anticipation. In contrast, the Time Browsing Online Index increased by 7.7%, indicating heightened digital engagement driven by both seasonal shopping and increased consumption of election-related content. The demand for credit solutions remains stable, with only a slight 0.4% dip in expansion intent, suggesting that consumers are strategically managing their financial resources while preparing for the holiday season.
- Technology Sector Faces Declines Amid Caution in Consumer Spending: The technology sector saw a decline of 4.2 points, impacted by reduced discretionary spending and ongoing supply chain challenges, particularly in high-demand areas like semiconductors. Election-year regulatory uncertainties further compound these difficulties, dampening consumer confidence.
The ZEI utilizes generative AI to analyze trillions of behavioral signals providing comprehensive scores that reflect economic sentiment, trends, and dynamics. Unlike surveys, this index utilizes over 20 proprietary inputs that recalibrate each month based on actual behavior, enhancing the understanding of a key driver of economic growth – consumer 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-Powered 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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