Read our full analysis for a more in-depth look at these trends.
Regional Roundup: Is the sun setting in the West?
The job market in the West is rockier than any other region, and it’s weighing on consumers’ expectations and spending.
June 2025
Key takeaways
- U.S. economic growth was broad based in 2024. In the West, spending growth has been significantly higher than other regions over most of 2025, but it has also slowed the most, decreasing around five percentage points since February, according to Bank of America aggregated credit and debit card data. This suggests that there may be some economic moderation in the second quarter of this year in this region.
- Some of the slowing in spending growth in the West can be attributed to the fading of previous temporary boosts following heatwaves in the region last year. But while, according to Bank of America deposit data, wage growth in the West looks solid, there are some signs of underlying weakness. In fact, the region was the only one in April 2025 that had a job openings rate below the unemployment rate.
- The slowdown in spending growth appears to be largely centered around lower-income households, which may reflect a weaker jobs market in leisure and hospitality-related areas. On the other hand, higher-income households' spending looks more stable, potentially reflecting an improved outlook for tech jobs.
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