The Iowa Business Council (IBC) has released its first-quarter Economic Outlook Survey (EOS) for 2024, projecting a positive six-month 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 63.16, an increase of 3.51 points from the previous quarter and 2.66 points above the historical average of 60.50.
The first-quarter survey shows meaningful, positive changes in overall outlook after two quarters of relatively flat movement. Overall, IBC members maintain a positive sentiment regarding Iowa’s overall economy.
First-quarter sales expectations among IBC members increased by 9.22 index points to a value of 67.11. Capital spending expectations decreased by 3.95 index points to 63.16, while employment expectations increased by 5.26 points to a value of 59.21.
Concerns relating to workforce attraction and retention remain the chief concern, with 68% of surveyed IBC executives listing it as a primary business challenge. Inflation was the second most cited business challenge, with 53% of IBC executives listing the increasing cost of products and service inputs as a concern. An unfavorable business climate (national supply chain, infrastructure, and federal regulations) was cited by 47% of IBC executives to round out the top three primary business concerns.
From a workforce perspective, 79% of IBC executives surveyed report that it is somewhat to very difficult to hire employees currently, down from 85% from the 2023 fourth-quarter survey.
“The first quarter findings show continued optimism in Iowa’s economy,” said Phil Jasper, president of Raytheon and chair of the Iowa Business Council, in a release. “With sizable increases in most categories, these results further indicate an acceleration of growth for Iowa’s overall business climate.”
“As we begin the final stretch of the Iowa legislative session, lawmakers should prioritize their efforts on enhancing Iowa’s tax competitiveness, increasing access to meaningful workforce strategies including work-based learning, and expanding housing opportunities and development across the state,” added Iowa Business Council president Joe Murphy. “Taken together, these initiatives provide the opportunity to expand economic opportunity for all Iowans.”
The Economic Outlook Survey has been completed by IBC members on a quarterly basis since 2004. The report 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, especially when considering that IBC companies have a presence in all 99 counties.
Visit www.iowabusinesscouncil.org/news/eos to review previous Economic Outlook Surveys.
