BETTENDORF, IOWA (March 3, 2023) — The Quad Cities Chamber has released the 2022 Q4 Market Report for the Quad Cities region. The report provides trends and data to help inform companies doing business within the region. Each report provides an economic analysis for the quarter by Dr Kenneth A Kriz, Distinguished Professor of Public Administration at the University of Illinois. Additionally, you’ll find a local labor market update and regional inflation analysis provided by Bill Polley, Director of Business Intelligence for the Chamber.
The complete four-page Quarterly Market Report is available on the Chamber’s website.
Key takeaways include:
- The US economy grew at about a three-percent rate in 2022 in spite of several increases in short-term interest rates during the year by the Federal Reserve.
- Locally, economic conditions tracked well with the national economy with job growth continuing, though slowing slightly in the fourth quarter.
- Despite many economic indicators pointing to the possibility of an impending recession, there are many critiques that suggest a milder chance of the possibility. Find out what themes are leading economists to predict a forthcoming recession, and why there’s reason to believe some of these concerns may be a bit hyperbolic.
- In the Quad Cities region, job growth initially rose strongly in October, then slowed markedly in November and December. Jobs in the Quad Cities region were flat overall in Q4.
- Leading the sectors in job growth in the Quad Cities MSA for the year were government (federal, state, and local) with a 10.5% increase in jobs. Leisure and hospitality jobs grew 9.5%. Manufacturing jobs increased by 4.2%. Trade, transportation, and utilities, our largest jobs category in the metropolitan area (39,500 jobs), increased at a 3.9% rate last year.
- The unemployment rate stands at about 3.7% in the Quad Cities MSA, up slightly from a low of 3.4% in September, but stable from November to December.
- Overall inflation as measured by the Consumer Price Index (CPI) was 6.4% for 2022. However, the price increases have not been uniform across sectors. For the most part, Midwest inflation tracked closely with national numbers with a few notable differences.
- The pace of inflation peaked in mid-2022 and has been slowing in recent months. If this continues into 2023, we can expect inflation in the region to fall below 4% and possibly even below 3% this year, which is roughly on par with Federal Reserve expectations for inflation nationally.
- Growth forecasts for 2023 are generally still positive, but lower than last year. These growth forecasts hinge on how much the Federal Reserve will need to further raise interest rates in 2023 and whether those rate hikes will slow the economy too much. While many signs are pointing to recession ahead, some economists still acknowledge that a negative outcome could still be avoided.
Read the full market report.
About the Quad Cities Chamber
The Quad Cities Chamber facilitates business growth to help create a prosperous regional economy where all can thrive. Its work is focused in three strategic areas: Business and economic growth; placemaking and place management; and talent attraction and development.
Learn more about the Chamber at quadcitieschamber.com.
