Zeta Economic Index December 2024: A Deep Dive into Resilient Consumer Spending and Rising Economic Confidence
The Zeta Economic Index (ZEI) has made waves with its December 2024 report, highlighting an encouraging trend in consumer confidence and spending across the United States. As we close out the year, it’s clear that the economy is maintaining momentum, despite challenges such as inflation. By leveraging cutting-edge AI technology, Zeta Global has created one of the most comprehensive economic barometers available today. Their analysis provides critical insights into the state of the economy, making it a vital tool for businesses and decision-makers.
In this blog post, we’ll break down the Zeta Economic Index findings, focusing on the key indicators of consumer confidence, spending patterns, and sector performance. This in-depth analysis provides a clearer picture of what to expect in 2025 and beyond.
Key Highlights from the Zeta Economic Index December 2024 Report
Zeta Global’s proprietary AI-powered platform has captured real-time consumer behaviour from over 240 million US consumers. This immense data pool allows for an incredibly precise and timely understanding of economic trends. The December 2024 report is particularly noteworthy, as it reflects not just the seasonal spending patterns but also a stabilisation of economic conditions that suggest consumers are becoming more resilient.
Let’s dive into the main findings of the ZEI report:
1. Sustained Growth in Consumer Confidence
The Economic Index Score (EIS) reached an impressive 71.5 points in December, marking a 0.6 point increase from November. This score has now set a record for the second consecutive month — the highest since April 2021. What’s clear is that consumer sentiment remains strong. Despite inflation inching up to 2.7%, which represents a modest increase, it hasn’t deterred consumers from making purchases. The ZEI’s Economic Stability Index (ESI), which measures consumer confidence regarding economic stability, also rose by 0.6% QoQ to 66.9 points, indicating a robust outlook for 2025.
2. Surge in Consumer Spending Post-Holiday Season
The holiday shopping season has traditionally been a bellwether for consumer activity, and this year’s results were no exception. The ZEI reports a 4.2% MoM increase in retail activity, reflecting an ongoing shift towards online sales which continue to dominate the retail landscape. However, in-store visits decreased slightly by 0.5%, showing that digital shopping is taking a more prominent role in driving economic growth.
Despite this shift to online platforms, spending remained elevated, and consumers showed resilience through platforms like buy now, pay later (BNPL), which grew in popularity during the festive season. This shows that flexibility in payment options is becoming a cornerstone of modern consumer habits.
3. Technology and Financial Services Show Strong Growth
One of the most noteworthy trends from December 2024’s ZEI report is the continued rise in consumer interest in technology. Consumer demand for new devices and cutting-edge innovations saw a 5.6-point MoM increase. As we head into CES 2025, this signals a booming year for the technology sector.
At the same time, financial services spending also saw an uptick, with a 3.0-point rise MoM. Many consumers leveraged flexible financing options like BNPL to afford high-ticket items, particularly in technology. This trend highlights the growing demand for affordable ways to invest in premium products without compromising financial stability.
4. Travel Sector Sees Seasonal Boost
December is also a key time for the travel sector, with many consumers taking vacations or holiday trips. According to the ZEI, travel activity grew by 2.0 points MoM, reflecting the busy travel season. This suggests that despite economic pressures, people continue to prioritise travel and leisure, which bodes well for the industry in 2025.
5. Job Market Sentiment Remains Positive, Despite Slight Decline
While job market sentiment took a slight dip with a 0.9% MoM decrease, it’s important to note that this decline followed a remarkable 13.9% surge in November due to temporary holiday positions. Despite this minor decline, employment sentiment remains positive, showing stability in the workforce.
How Zeta’s AI-Powered Economic Index Provides a Unique Perspective
Unlike traditional economic indicators that rely on surveys, the Zeta Economic Index is powered by AI and real-time behavioural data. It pulls signals from over 20 proprietary inputs and recalibrates monthly based on actual consumer behaviour, making it one of the most accurate tools for understanding economic sentiment. The AI-driven model tracks trillions of behavioural signals, giving a deeper and more nuanced understanding of the economy’s current state and trajectory.
This monthly recalibration means that Zeta’s Economic Index is continually refining its predictions, offering a much more dynamic and real-time picture of the economy compared to traditional static models.
Looking Ahead: What Does the Zeta Economic Index Mean for 2025?
As we step into 2025, the Zeta Economic Index signals continued consumer resilience. Here are a few predictions based on the latest data:
- Retail and technology sectors are expected to continue their strong performance, with online retail and tech innovation driving growth.
- The financial services industry will likely see continued interest in flexible payment solutions, such as BNPL.
- Travel and leisure may see a seasonal uptick, as consumers maintain their enthusiasm for holidays and getaways.
- Job market sentiment should stabilise, with consumer confidence remaining strong in the employment sector.
For businesses, this means planning for continued consumer spending while preparing for shifts towards more digital and flexible payment options. By using AI-powered tools like the Zeta Economic Index, companies can better anticipate trends and make informed decisions for the upcoming year.
Conclusion: Why the Zeta Economic Index Matters for 2025
The Zeta Economic Index gives businesses, investors, and policymakers a comprehensive and real-time look at the state of the US economy. As consumer confidence and spending remain robust, the forecast for the upcoming year looks promising. With AI-driven insights at their disposal, businesses can adjust strategies, anticipate trends, and respond to shifts in the economy more effectively.
In short, the Zeta Economic Index offers the clarity and precision needed for forward-thinking decision-making. As we enter 2025, this powerful tool will remain essential in navigating the ever-changing economic landscape.
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