Economy of the West: Wage, Spending & Potential Headwinds

Joe Wadford

Taylor Bowley

David Tinsley

June 2024

Bank of America internal card and deposit data shows that discretionary spending growth is picking up momentum in the West, boosted by the highest employment income growth of all regions.
Income growth is up nationally but highest in the West, supported by leisure and hospitality gains from domestic tourism and a possible lift from AI-related investments.
But rising necessity costs and population shifts in the region put pressure on local businesses and future investments. And while California is showing signs of recovery, its large economy, fragile employment situation and high cost of living provide a potential headwind to the West's overall GDP.

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

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