The Iowa Business Council (IBC) has released its fourth-quarter Economic Outlook Survey (EOS) for 2024, projecting a positive six-month economic outlook for the state.
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.
The survey’s overall economic outlook index is 65.63, an increase of 8.96 points from the previous quarter and representing a significant increase in optimism from IBC members.
All three categories in the latest survey experienced large increases compared to the third-quarter survey:
- Sales expectations increased 8.75 points to a value of 68.75
- Capital spending expectations increased 7.81 points to a value of 64.06
- Employment expectations increased by 10.31 points to a value of 64.06
“As we enter the new year, the latest IBC survey results reinforce the broad sense of optimism in Iowa’s economy from our members,” said Gage Kent, CEO of KENT Corporation and chairman of the Iowa Business Council. “These numbers reflect an encouraging outlook for reduced headwinds. We look forward to capitalizing on this momentum by working closely with the Governor and Iowa General Assembly throughout the legislative session on policy areas that expand Iowa’s economic vitality.”
An unfavorable business climate (national supply chain, infrastructure, and federal regulations) was listed as the top primary business challenge, cited by 63% of those surveyed. Inflation was cited by 50% of survey participants and workforce attraction and retention was cited by 44% to round out the top three primary business challenges.
“The Economic Outlook Survey is well above the historical average of 60.46,” said IBC president Joe Murphy. “We look forward to working with policymakers both in Des Moines and Washington, DC, to sustain this optimism throughout 2025.”
The Economic Outlook Survey has been completed by IBC members on a quarterly basis since 2004 and 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, since IBC companies have a presence in all 99 counties.
To review previous Economic Outlook Surveys, please visit www.iowabusinesscouncil.org/news/eos.
