Mixed indicators in latest WA economic report

The latest monthly report from the state’s Office of Financial Management’s Forecasting and Research Division is a mixed bag. 

On the plus side, according to state analysts: 

• The state took in more revenue than expected in February. General fund-state revenue collections surpassed forecasts by $73.0 million, up 3.8%, highlighting strong economic activity. 
• Inflation is trending downward. It went from 3% year-over-year in October 2024 to 2.5% in February 2025. 
• Housing starts are up. More than 40,000 building permits were issued in January, compared to the previous quarter’s 39,700 in the previous quarter and a forecast of 36,500. 

However, initial unemployment claims are up, more than 1,500 jobs were lost and already climbing prices at the pump aren’t expected to get better due to the state’s nearly $10 billion trade deficit with Canada for oil and gas and the enforcement of tariffs in the trade war between Canada and the U.S.