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Regional Roundup: Western momentum
Consumer spending growth is strongest in the West, even as the region’s job market shows mixed trends, especially in California.
April 2026
Key takeaways
- Consumer spending in the West has outpaced the rest of the US for an extended period, according to Bank of America credit and debit card data, and the gap has widened again into early 2026. Importantly, that strength isn't limited to higher-income households: the West shows the smallest gap between higher- and lower-income spending growth, suggesting a more broadly supported consumer rather than a top-heavy rebound.
- While the Northeast leads on headline wage growth, those gains are increasingly concentrated among higher-income households, according to Bank of America deposit account data. In fact, wage growth turned negative for both lower- and middle-income households in the region in March, while the Midwest and the West have seen the least exaggerated differences in the “K-shaped” recovery.
- Critically, wage growth has its limits. It helps those who have jobs, but its impact may be somewhat muted in the West, particularly in California, where unemployment rose sharply in the past three years. However, in Bank of America data, there's good news: small businesses' payments to hiring firms point to early signs of a potential labor market recovery. Yet, much of the state's projected employment gains are concentrated in a few sectors, potentially limiting the scope of any rebound.
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