Regional Economic Trends in the West

This report examines the economic trends in the Western United States as of June 2025. It outlines the broad-based economic growth experienced in 2024, with particular focus on spending patterns in the West. The report details a significant slowdown in spending growth in the region, which has decreased by approximately five percentage points since February 2025. Factors contributing to this decline include the fading effects of temporary boosts from previous heatwaves and the impact of a tighter labor market, particularly affecting lower-income households. The report also highlights the contrasting stability in spending among higher-income households, which may be attributed to a more favorable outlook in the tech job market. The analysis includes data from Bank of America on consumer spending and wage growth, illustrating the disparities in economic conditions across different income groups and regions. Overall, the report provides a comprehensive view of the economic landscape in the West, emphasizing the challenges and opportunities present in the current environment.