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DHM Research

Optimism About the Washington Economy Is at a Post-COVID Peak

DHM’s most recent statewide survey in Washington revealed that things might be looking up. 41% of Washingtonians believe the state is headed in the right direction—an 8-percentage point increase from the end of 2023. This optimism is especially high among 18–29-year-olds (48%), 45–64-year-olds (47%), and people of color (49%).

Washingtonian’s perceptions of local economic conditions and their personal financial situations have increased in tandem.

This positive trend about the direction of the state aligns with perspectives on Washington’s economy. At a relative high in recent years, the majority (56%) of Washingtonians view the state’s current economic conditions as good or very good. Incorporating data from other DHM surveys conducted this year, the annual average for 2024 is just under 55%—a significant increase from 2023 and 2022 when the percentage of folks saying the Washington economy was good or very good hovered around 46%.

We see similarly positive data when asked about personal financial situations. 63% indicate that their situation is good or better, while only 36% say their personal financial situation is poor or worse.

Opinions on the economy are largely cohesive among Washingtonians.

When we dig into different demographic groups, we see that these increases in positivity are consistent across most groups. Across the state, favorable views of the economy increased from December 2023. Economic conditions are considered good by 66% (+11 percentage points) among King County residents, 64% (+19) of Puget Sound residents, 46% (+4) of Western Washington residents and 44% (+3) of Eastern Washington residents. While views of economic conditions have large differences by party, we see increases among folks from all parties—71% (+10 percentage points from December 2023) of Democrats, 41% (+9) of Republicans, and 51% (+6) of those who identify as independent or outside the political party binary.

The data suggests cautious optimism moving forward.

Despite the perspective that current economic conditions and personal financial situations are good, Washingtonians do not necessarily think they are getting better. Only 22% of people think this is the case, while 38% say economic conditions are getting worse, and 36% say they are staying about the same. One reason for this might be that the cost of everyday goods often drives public opinion about the economy. When asked what factors most impact how you rate Washington’s current economic conditions, 58% say the cost of groceries is in their top three indicators—which may not be a surprise for the state with the fourth-highest annual food costs.1

While there is room for improvement (48% still say the state is headed in the wrong direction), DHM’s most recent data indicates an upward trend in both general and economic sentiment in Washington. As the season shifts and we head into an election that will result in a new U.S. President and Washington Governor, this budding optimism should be a welcome indicator for decision makers.

1 Forbes Advisor, “Examining the Cost of Living by State in 2024,” July 15, 2024.