| The economic outlook in the state for the next six months is positive, driven by strong sales and capital investment expectations.
That’s the word from the Iowa Business Council (IBC) in its second quarter Economic Outlook Survey (EOS) for the year. The recently released report measures IBC member expectations for sales, capital spending, and employment for the next six months. If the index measures above 50, sentiment is positive. The survey’s overall economic outlook index for the second quarter is 64.81 points, a decrease of 0.54 points from the first quarter. However, the overall results are more than four points higher than the EOS historical average of 60.52. Across the three measured subindices, little fluctuation was realized from the first quarter and all three indices measured above the critical 50-point positive sentiment threshold. They include:
“The IBC continues to project a positive six-month outlook for Iowa’s economy, driven by strong sales and capital investment expectations,” Gage Kent, CEO of KENT WORLDWIDE and IBC chairman, said in the council’s news release. “Despite minimal change, the index remains well above its historical average, underscoring the strength and resiliency of Iowa’s business climate.” As cited by 61% of IBC members, attracting and retaining a quality workforce remains a top business challenge. Both the cost of products/service inputs and an unfavorable business climate (national supply chain, infrastructure, federal regulations) were cited by 56% of IBC members to round out the top three primary business challenges for the first quarter. “Federal policymakers have an opportunity to build on this positive economic sentiment by preserving and strengthening North American trade relationships through the USMCA and advancing permitting reform that will unlock investment, accelerate infrastructure development, and support continued economic growth,” IBC President Joe Murphy said. The Economic Outlook Survey has been completed by IBC members on a quarterly basis since 2004. The report provides insight regarding the projected trends for the state of Iowa, which can be used for business and economic planning. The reported trends have a statewide impact, especially when considering that IBC companies have a presence in all 99 counties. To review previous Economic Outlook Surveys, visit www.iowabusinesscouncil.org/news/eos. The IBC is a nonpartisan, nonprofit organization whose 22 members are the chief decision makers of major Iowa employers. Employing more than 156,000 Iowans, IBC member companies have invested billions of dollars of capital in Iowa’s commercial infrastructure; lead the way in technology innovation, R&D, and grants procured; and are often the driving financial and volunteer forces behind philanthropic efforts all over the state. IBC member companies are: Alliant Energy; Atlantic Coca-Cola Bottling Company; Casey’s General Stores, Inc.; Collins Aerospace; Corteva Agriscience; Deere & Company; Fareway; HNI Corporation; Hy-Vee, Inc.,;Iowa Bankers Association; KENT WORLDWIDE; MercyOne; MidAmerican Energy Company; Musco Lighting; Pella Corporation; Principal; Ruan Transportation Management Systems; Sukup Manufacturing; The Weitz Company; UnityPoint Health; Vermeer Corporation; and Wellmark Blue Cross Blue Shield of Iowa. |
