Regional Morsel: Midwestern Stars
While not a beneficiary of domestic migration like the South, Midwestern cities stand out for consumer goods spending growth.
- Bank of America credit and debit card spending per household got off to a strong start in 2023, but has been weakening of late. But, while in stark contrast to the South, the Midwest has not been a beneficiary of high domestic migration, yet a few Metropolitan Statistical Areas (MSAs) there stand out as showing continued growth in spending.
- Since 2019, Minneapolis and Cleveland are two midwestern cities where discretionary spending has been a 'star' performer. The strength appears to be more of a 'things' story in these areas, rather than due to 'experiences.'
- What could be driving this? Consumers in these cities appear a bit more chipper than the US average, helped by strong labor markets, lower inflation and more affordable housing markets. While forecasters are expecting a slowdown in the US, both cities may have an advantage in their relatively well-diversified economies.
Read our full analysis for a more in-depth look at these trends.
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