Northeast: Present imperfect, but a ‘fab’ future?

Though the Northeast is facing population loss, it also sees strong consumer spending and future manufacturing growth.

Headshot of David Tinsley

David Tinsley

Headshot of Taylor Bowley

Taylor Bowley

October 2023

Key takeaways

  • The Northeast economy has the smallest population of the U.S. regions, but the most high-density cities. In many respects it defies easy categorization, with a significant financial sector accompanied by a strong manufacturing base.
  • On a per household basis, Bank of America internal credit and debit card data shows somewhat stronger spending growth in the Northeast than the overall U.S. Northeast spending appears particularly strong among the higher-income cohort, while this group's share of the overall population in this region is above the U.S. average.
  • Signs that the higher-end of the labor market is slowing, along with continued population losses are headwinds to growth in this region. The better news is that growing investments in the semiconductor industry stand to benefit the Northeast, which should help drive growth in the medium term.

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