DAVENPORT, IOWA (June 11, 2026) — Nationally, consumer spending had its second-lowest quarterly growth rate in the last three years, but the strength of spending on AI infrastructure kept overall real GDP growth positive at a 1.6% seasonally adjusted annual rate, according to the Grow Quad Cities Q1 2026 Market Report.
Both imports and exports are in recovery mode from tariff disruptions, while the conflict in the Middle East pushed oil prices up, moving inflation above the Fed’s 2% target. This could put more pressure on the consumer and on investment spending. Some economists believe a rate increase is more likely than a rate cut over the next year.
Locally, the story is slightly more positive, with the metro gaining approximately 900 jobs since December. "In the Quad Cities, the labor market remained stable, with employment slightly below last year’s levels, although construction jobs are at their highest level in decades,” said Bill Polley, Senior Director of Business Intelligence for Grow Quad Cities.
Results of the Grow Quad Cities Business Outlook Survey showed:
- Respondents were slightly less optimistic overall on US economic activity, compared with respondents to last quarter’s survey.
- Manufacturers were slightly more optimistic than non-manufacturers.
- Manufacturers reported that increases in raw materials and supplies are the biggest inflation concern, while non-manufacturers reported that gasoline and diesel prices are of greatest inflation concern.
The Quarterly Market Report includes a Regional Market Summary, Labor Market Summary, and Business Outlook Survey. Access the full Market Report.
About Grow Quad Cities:
Grow Quad Cities is a full-service regional economic development organization focused on business development, workforce development and quality of place development. Each week, Polley writes a blog on economic trends and indicators for our Quad Cities region.
