The Iowa Business Council (IBC) has released its final quarterly Economic Outlook Survey for 2023.
The survey’s overall economic outlook index is 59.65, a decrease of 0.27 index points from the 2023 third quarter report. The fourth quarter survey reveals minimal changes in the overall outlook index although several categories experienced larger shifts.
The 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.
Q4 sales expectations decreased 4.01 to a value of 57.89. Capital spending expectations increased by 6.40 to 67.11, while employment expectations decreased by 3.19 to a value of 53.95.
Concerns relating to workforce attraction and retention remain the number one concern with 74% of surveyed IBC executives listing it as a primary business challenge. Tied for second at 53% were an unfavorable business climate (national supply chain, infrastructure, and regulations) and the cost of products and service inputs.
From a workforce perspective, 85% of IBC executives surveyed report that it is somewhat to very difficult to hire employees, down from 90% from the third-quarter survey.
“Iowa’s economy is in a strong position as we enter 2024,” stated Phil Jasper, president of Raytheon and chair of the Iowa Business Council. “Our members remain optimistic about the future growth prospects here in Iowa that will lead to high-quality jobs and innovations throughout our state.”
The Economic Outlook Survey has been completed by IBC members on a quarterly basis since 2004. To review previous Economic Outlook Surveys, visit iowabusinesscouncil.org/
