Consumer is meaningfully adjusting spend amid higher energy prices: Zeta Global's Steinberg

Summary

David Steinberg, CEO of Zeta Global, discusses real-time consumer spending data showing a meaningful pivot away from discretionary spending due to a 50% rise in gas prices. The Zeta Economic Index saw its first month-over-month drop in over a year, and credit applications fell 18%, though enterprise spending remains strong. Steinberg views the shift as temporary assuming gas prices decline but warns of deeper cuts if prices stay high.

• Gas prices up 50% driving consumer behavior changes.
• First month-over-month drop in Zeta Economic Index in over a year.
• Consumers pivoting discretionary spending away from travel, entertainment, and dining.
• Credit applications down 18% month-over-month, signaling caution.
• Grocery purchases also declined, possibly due to trading down to store brands.
• Enterprise spending from Zeta's clients has not slowed down.
• Steinberg hopes the trend is temporary if gas prices come down.
• No specific investment recommendations or trade expressions were offered.