Iowa businesses are projecting a positive economic outlook over the next six months, with the Iowa Business Council’s first-quarter Economic Outlook Survey showing an overall index of 65.35 points — up 2.19 points from the fourth quarter of 2025 and more than 4.5 points above the survey’s historical average of 60.47.
The quarterly survey measures IBC member expectations for sales, capital spending and employment. Any reading above 50 indicates positive sentiment.
Sales expectations led the way for the second consecutive quarter, rising 7.89 points to 73.68 — a threshold not reached since 2018. Capital spending expectations edged up 1.31 points to 64.47, while employment expectations dipped 2.64 points to 57.89. All three subindices remained well above the 50-point threshold.
“Seeing sales expectations reach their highest level since 2018 is a strong signal that Iowa businesses remain confident in the direction of Iowa’s economy,” said Gage Kent, CEO of Kent Worldwide and chairman of the Iowa Business Council. “This optimism drives investment, hiring, and expansion decisions that strengthen our state’s economic momentum and position Iowa for sustained growth in the months ahead.”
IBC members identified two top business challenges in a tie: the cost of product and service inputs and attracting and retaining a quality workforce, each cited by 53% of respondents. An unfavorable national business climate — including supply chain conditions, infrastructure and federal regulations — was cited by 47% of members, rounding out the top three concerns.
“Iowa Business Council executives continue to showcase exceptional resiliency despite geopolitical challenges and continued strains on Iowa’s agricultural economy,” said Joe Murphy, president of the IBC. “Policymakers can help fuel this optimism by passing meaningful permitting reform at the federal level and property tax reform at the state level.”
The Economic Outlook Survey has been conducted quarterly by IBC members since 2004. IBC companies have a presence in all 99 Iowa counties. Previous surveys are available at iowabusinesscouncil.org/news/eos
