The Iowa Business Council has released its second-quarter Economic Outlook Survey for 2026, showing member expectations for sales, capital spending and employment remain positive for the next six months despite a slight overall decline from the previous quarter.
The survey’s overall economic outlook index sits at 64.81 points for the second quarter, a decrease of 0.54 points from the first quarter. The index, in which a measurement above 50 points indicates positive sentiment, remains more than 4 points higher than the survey’s historical average of 60.52.
The three subindices that make up the survey showed little change from the first quarter, with all three measuring above the 50-point threshold for positive sentiment. Sales expectations decreased 1.46 points to 72.22. Capital spending expectations decreased 0.58 points to 63.89. Employment expectations increased 0.44 points to 58.33.
“The IBC continues to project a positive six-month outlook for Iowa’s economy, driven by strong sales and capital investment expectations,” said Gage Kent, CEO of Kent Worldwide and chairman of the Iowa Business Council. “Despite minimal change, the index remains well above its historical average, underscoring the strength and resiliency of Iowa’s business climate.”
Attracting and retaining a quality workforce remains the top business challenge cited by IBC members, named by 61% of respondents. The cost of products and service inputs and an unfavorable business climate – citing national supply chain issues, infrastructure and federal regulations – tied for the second-most-cited challenge, each named by 56% of members, rounding out the top three challenges for the quarter.
“Federal policymakers have an opportunity to build on this positive economic sentiment by preserving and strengthening North American trade relationships through the USMCA and advancing permitting reform that will unlock investment, accelerate infrastructure development, and support continued economic growth,” said IBC president Joe Murphy.
The Economic Outlook Survey has been conducted quarterly by IBC members since 2004 and provides projected economic trends for Iowa used in business and economic planning. IBC member companies have a presence in all 99 of Iowa’s counties. Previous surveys are available at www.iowabusinesscouncil.org/news/eos.
