Regional Morsel: Midwestern Stars

While not a beneficiary of domestic migration like the South, Midwestern cities stand out for consumer goods spending growth.

Headshot of David Tinsley

David Tinsley

Headshot of Anna Zhou

Anna Zhou

April 2023

Key takeaways

  • 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.