Powering the revolution

David Tinsley

July 2024

Consumers have had some respite from rising utility bills recently, with the year-over-year median utility payment per customer declining 1.4% in the three months to May, according to Bank of America internal data. However they are still paying a lot more than in 2019, and the price of some utilities, including electricity, has been rising, suggesting that any relief could be short-lived.
At the same time, electricity demand is actually increasing, pressuring supply, and it may continue to do so for a long time as industrial onshoring and the AI revolution are both turbo-charging the need for generating capacity.
This demand for significant investment in generation and related distribution infrastructure could be a headwind to consumers' utility bills for the foreseeable future.

Read our full analysis for a more in-depth look at these trends.

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Powering the revolution

A sign hanging in the window of a storefront reads “We’re hiring.”

Amidst the strong labor market, job-to-job moves have moderated and the pay raises for moving jobs have dropped.

Young woman sitting in an outdoor cafe near finishing up her freelance work in a relaxed environment, while having a cup of coffee.

Wage and spending are strong in the West, likely boosted by AI investment and tourism, but headwinds may weigh on future growth.

Two creative designers sitting in meeting in modern office.

Although wage inflation and payroll costs have eased, rising rent, especially in the West, puts pressure on small businesses.