A new index is using AI tools to measure U.S. economic growth in a broader way

David A. Steinberg, the CEO of Zeta Global Holdings, is spearheading an innovative approach to measuring the health of the U.S. economy. The company has developed the Zeta Economic Index, which leverages generative AI to analyze consumer behavior on a massive scale. This index assesses economic growth on two fronts: overall health and stability.

The index examines various aspects of consumer activity across eight verticals, including automotive activity, dining and entertainment, financial services, healthcare, retail sales, technology, and travel. The algorithm also ingests data from 240 million Americans, offering insights unavailable to other economic analysts.

In contrast to traditional methods that examine economic indicators in retrospect, the Zeta Economic Index aims to predict future trends by providing a 30-day advance snapshot of the economy. For the stability measure, the index evaluates consumers’ capacity to withstand economic fluctuations.

The goal of this index is to offer a more comprehensive evaluation than traditional measures such as GDP, providing a more holistic perspective on the economy’s health. In June, both the economic score and stability index were at 66 and 66.1, respectively, signaling an “active” and “stable” economy.

According to Steinberg, the index is unique because it considers actual spending and research patterns of consumers, leading to a more accurate forecast. He emphasized that this approach could revolutionize economic prediction methods.

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