Iowa Business Council (IBC) members remain largely positive of the overall trend of Iowa’s economy while noting its third-quarter Economic Outlook Survey (EOS) for 2023 experienced a decline across all three measured expectation indexes.
The third-quarter report, which measures member expectations for sales, capital spending and employment for the next six months, indicated an index of 59.92, a decrease of 4.25 index points from the 2023 second-quarter report. If the index measures above 50, sentiment is positive.
Q3 sales expectations among IBC members decreased by 6.85 to a value of 61.90. Capital spending expectations decreased by 0.54 to 60.71, and employment expectations decreased by 5.36 to a value of 57.14.
Concerns relating to workforce attraction and retention remain the number one concern with 81% of surveyed IBC executives listing it as a primary business challenge. An unfavorable business climate (national supply chain, infrastructure, and regulations) was the second primary concern cited by 52% of IBC executives. The cost of products and services continues to round out the top three business challenges with 43% of IBC members reporting inflation as a core concern.
From a workforce perspective, 90% of IBC executives surveyed report that it is somewhat to very difficult to hire employees currently.
“Knowing that our economy remains strong and resilient is an important point as we begin to focus our attention on policy priorities for the 2024 legislative session,” said Iowa Business Council President Joe Murphy in a release.
To review Economic Outlook Surveys, visit iowabusinesscouncil.org/
