Equifax Market Pulse Index Indicates Improved Financial Progress Among Consumers within Lower Credit Tiers

Core Insights - The third quarter 2025 Market Pulse Index from Equifax shows a slight increase to 61.6, indicating a quarter-over-quarter rise of 0.35% and a year-over-year increase of 0.14, reflecting a stabilization in credit scores among lower tiers [1][3][4] Group 1: Market Pulse Index Overview - The Market Pulse Index synthesizes anonymized data on credit, debt, income, and assets, providing a comprehensive view of U.S. consumer financial health on a scale of 1 to 100 [2] - The index indicates that the financial divide in the "K-shaped" economy is stabilizing, with lower credit score tiers showing improvement for the first time since March 2024 [3][4] Group 2: Generational Insights - Gen Z's average Market Pulse Index improved to 59.04, up 0.71% quarter-over-quarter and 0.34% year-over-year, indicating financial progress despite variability [5][7] - Millennials have a Market Pulse Index of 58.82, showing minimal change amid financial pressures, while Gen X and Baby Boomers show steady improvements [7] - Traditionalists (Silent Generation) experienced the largest increases in their Market Pulse Index, reflecting the stabilizing effect of long-term savings [7] Group 3: Implications for Stakeholders - The financial momentum among Gen Z presents opportunities for lenders and retailers to build long-term relationships with this emerging economic force [6]