Core Insights - The Market Pulse Index for the first half of 2025 indicates a financial health score of 61.4, slightly below the four-year average of 61.85, reflecting increased financial pressure on U.S. consumers, particularly Generation Z [2][3] - A significant financial gap is emerging between generations, with Generation Z experiencing the most pressure, as their Market Pulse Index fell by over 5% from June 2021 to June 2025 [3][5] - The resumption of federal student loan payments has exacerbated financial disparities, particularly affecting Generation Z, whose Market Pulse Index for student loan holders dropped by 4.8% during the same period [4][5] Consumer Behavior Trends - As the holiday season approaches, consumers are exhibiting caution in spending, with personal loan originations increasing by 17.6% from May 2024 to May 2025, and bankcard balances reaching $1.07 trillion, a 4.3% increase from July 2024 [7] - Middle-income households are expected to face greater financial pressure, leading to increased reliance on credit to manage inflation, which may influence consumer behavior during the holiday season [7][9] - Consumers are adopting creative strategies to manage their budgets amid rising costs, with a focus on credit and flexible payment options to maintain holiday traditions [9] Market Pulse Index Methodology - The Market Pulse Index aggregates critical financial data points, including credit, debt, income, capacity, and assets, to provide a comprehensive view of consumer financial health [6][9] - The index serves as a benchmark reflecting the cumulative effects of various economic forces on U.S. consumers, allowing for comparisons across different populations and generations [9]