Iowa business executives raise sales expectations, ceasing decline in optimism

The Economic Outlook Survey measures member expectations for sales, capital spending and employment for the upcoming six months. Index measures above 50 are positive. The fourth-quarter survey’s overall economic outlook index is 59.26, up 0.51 index points from the third quarter.

The third-quarter 2022 survey index, 58.75, was a decrease of 5.13 index points from the second-quarter report. The first-quarter 2022 report’s index score was 68.86.

“The survey results, essentially flat compared to the third-quarter, indicate Iowa’s continued resiliency as world markets and other indices project future economic strife,” the report said.

Capital spending and employment indexes declined by 2.08 index points and 5.69 index points, respectively, from the third quarter. The capital spending index is now at 54.17, and employment expectations are at 55.56.

Sales expectations increased 9.31 index points, to 68.06.

IBC executives continue to have concerns regarding workforce attraction and retention.

Nearly all (94%) of IBC executives said it is somewhat to very difficult to hire employees. They report more than 7,600 positions are currently available or open in Iowa.

Eighty-three percent listed workforce attraction and retention as a primary business challenge, while 77% said their top concern was inflation. Fifty-six percent said unfavorable business climate is a top challenge.

“Despite continued concerns relating to workforce attraction and inflation, IBC members remain positive with respect to Iowa’s economic trajectory,” President of Mission Systems for Collins Aerospace and Chair of the Iowa Business Council Phil Jasper said in the report. “Iowa remains resilient in the face of difficult and growing economic challenges and we look forward to working with policymakers at all levels to ensure continued growth and prosperity for all Iowans.”

The council began its quarterly survey in 2004. Past survey results are here.