Quad Cities economic growth picked up speed in the third quarter of 2022 and average earnings rose modestly even as the nation and the region were hit by rapidly rising consumer inflation. That’s according to the recent Quad Cities Chamber Q3 2022 Quarterly Market Report. This and other quarterly reports are prepared for the chamber […]
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Quad Cities economic growth picked up speed in the third quarter of 2022 and average earnings rose modestly even as the nation and the region were hit by rapidly rising consumer inflation.
That’s according to the recent Quad Cities Chamber Q3 2022 Quarterly Market Report. This and other quarterly reports are prepared for the chamber by Kenneth A. Kriz, distinguished professor of public administration at the University of Illinois.
While the regional job market remained strong, there also is evidence of softening from post-COVID-19 levels, the summary said. Average weekly earnings in the Quad Cities increased over the Q2 numbers by just 0.8% from March to September. And “in the face of relatively high consumer inflation, wage growth in the region is not keeping pace with the cost of living.”
The 2022 Q3 summary also said the QC’s Return-to-Normal Index showed mixed signals, falling and then rising again. “The Quad Cities economy fell off its pace from the first half of the year during July, but then the economy picked up again in August and the increased level of economic activity continued through September,” Mr. Kriz wrote.
Real-time indicators also are trending toward a long-term growth trend, the summary said, after a sluggish pace in the first half of the year. Real economic growth at the national level based on the Real Gross Domestic Product, or GDP, was 2.6% in the first quarter. “Though below the robust growth during the 2021 COVID recovery, this pace is slightly above the long-term trend growth of the pre-COVID era,” the Q3 report said.
“There is also some evidence that this growth at trend rates may be continuing into the near future,” Mr. Kriz added. “Looking forward, an average of ‘nowcasts’ from various forecasters that we track suggests that real GDP growth will be around 2.4% in Q4.”
The job market also remained strong in the region in the third quarter, Mr. Kriz wrote, but there is evidence of softening. Jobs in the Quad Cities increased by 0.22% during Q3, down from over 2% in the second quarter.
Mr. Kriz also acknowledged that many economists are concerned about the below-trend growth nationally in Q1 and Q2 and the potential impact on the economy from the Federal Reserve’s policy shift toward greater monetary tightening via rising interest rates. As a result, he wrote, the underlying state of the economy seems about average compared to long-term trends.
“Growth has definitely slowed since the torrid pace of 2021, but it has slowed toward long-term growth averages,” the summary added, and “time will tell whether economic growth rates stabilize at long-term averages or continue to fall.”
During Q3, the report said, the Quad Cities Chamber also worked on 17 business attractions and two business retention and expansion projects. About 80% of those projects were related to the manufacturing industry.
In all, chamber staff provided 863 technical assists to businesses and celebrated a major success: The critical expansion of Midland Davis, Corp. a fifth-generation family company to allow it to collect, repair, reconstruct and sell refurbished wood pallets to customers in the region.
That expansion already is contributing to the strength of the Quad Cities regional economy as a result of Midland Davis hiring 10 new workers, leasing a 27,000 square-foot building at 1320 First St., Rock Island, and purchasing $250,000 in new equipment, tools, vehicles and trailers for the new location. The new division is expected to have an annual $2.2 million economic impact on the region.
The Q3 summary also highlighted the chamber’s efforts to provide assistance to minority entrepreneurs by partnering early this year with the Small Business Development Centers (SBDC) at Western Illinois University-QC (WIU-QC) and at Eastern Iowa Community Colleges (EICC).
The partnerships helped provide additional resources so each SBDC could hire a minority business advisor to expand outreach and provide free counseling and advice to minority and underrepresented populations.
In the past three months, the report said SBDC advisors provided one-on-one services to 400 clients and helped capture $664,089 in capital funding to help 30 businesses, and a number of minority entrepreneurs have opened businesses including the Cocina Verde food truck, a 100% Vegan operation, and Magical Moments Learning Center, which offers daycare, preschool and before- and after-school programs.
While the regional job market remained strong, there also is evidence of softening from post-COVID-19 levels, the summary said. Average weekly earnings in the Quad Cities increased over the Q2 numbers by just 0.8% from March to September. And “in the face of relatively high consumer inflation, wage growth in the region is not keeping pace with the cost of living.”
The 2022 Q3 summary also said the QC’s Return-to-Normal Index showed mixed signals, falling and then rising again. “The Quad Cities economy fell off its pace from the first half of the year during July, but then the economy picked up again in August and the increased level of economic activity continued through September,” Mr. Kriz wrote.
Real-time indicators also are trending toward a long-term growth trend, the summary said, after a sluggish pace in the first half of the year. Real economic growth at the national level based on the Real Gross Domestic Product, or GDP, was 2.6% in the first quarter. “Though below the robust growth during the 2021 COVID recovery, this pace is slightly above the long-term trend growth of the pre-COVID era,” the Q3 report said.
“There is also some evidence that this growth at trend rates may be continuing into the near future,” Mr. Kriz added. “Looking forward, an average of ‘nowcasts’ from various forecasters that we track suggests that real GDP growth will be around 2.4% in Q4.”
The job market also remained strong in the region in the third quarter, Mr. Kriz wrote, but there is evidence of softening. Jobs in the Quad Cities increased by 0.22% during Q3, down from over 2% in the second quarter.
Mr. Kriz also acknowledged that many economists are concerned about the below-trend growth nationally in Q1 and Q2 and the potential impact on the economy from the Federal Reserve’s policy shift toward greater monetary tightening via rising interest rates. As a result, he wrote, the underlying state of the economy seems about average compared to long-term trends.
“Growth has definitely slowed since the torrid pace of 2021, but it has slowed toward long-term growth averages,” the summary added, and “time will tell whether economic growth rates stabilize at long-term averages or continue to fall.”
During Q3, the report said, the Quad Cities Chamber also worked on 17 business attractions and two business retention and expansion projects. About 80% of those projects were related to the manufacturing industry.
In all, chamber staff provided 863 technical assists to businesses and celebrated a major success: The critical expansion of Midland Davis, Corp. a fifth-generation family company to allow it to collect, repair, reconstruct and sell refurbished wood pallets to customers in the region.
That expansion already is contributing to the strength of the Quad Cities regional economy as a result of Midland Davis hiring 10 new workers, leasing a 27,000 square-foot building at 1320 First St., Rock Island, and purchasing $250,000 in new equipment, tools, vehicles and trailers for the new location. The new division is expected to have an annual $2.2 million economic impact on the region.
The Q3 summary also highlighted the chamber’s efforts to provide assistance to minority entrepreneurs by partnering early this year with the Small Business Development Centers (SBDC) at Western Illinois University-QC (WIU-QC) and at Eastern Iowa Community Colleges (EICC).
The partnerships helped provide additional resources so each SBDC could hire a minority business advisor to expand outreach and provide free counseling and advice to minority and underrepresented populations.
In the past three months, the report said SBDC advisors provided one-on-one services to 400 clients and helped capture $664,089 in capital funding to help 30 businesses, and a number of minority entrepreneurs have opened businesses including the Cocina Verde food truck, a 100% Vegan operation, and Magical Moments Learning Center, which offers daycare, preschool and before- and after-school programs. 
