The Iowa Business Council (IBC) released its second-quarter Economic Outlook Survey for 2023 on June 28.
The report measures member expectations for sales, capital spending and employment for the next six months. If the index measures above 50, sentiment is positive. The second-quarter survey’s overall economic outlook index is 64.17, an increase of 4.45 from the 2023 first-quarter report.
From a workforce perspective, 80% of IBC executives surveyed report that it is somewhat to very difficult to hire employees compared to 94% from the first-quarter survey.
“IBC members remain confident in Iowa’s economic position,” President of Mission Systems for Collins Aerospace and Chair of the Iowa Business Council Phil Jasper said in a statement. “Despite a narrative of an impending downturn in the national economy, Iowa business leaders are optimistic about the future here in Iowa.”
The survey’s findings indicate a strong confidence in Iowa’s economy and represent a significant increase in optimism across all areas measured by the IBC compared to the previous quarter’s results.
Specifically, sales expectations among IBC members increased by 3.47 to a value of 68.75. Capital spending expectations increased by 4.31 to 61.25 and employment expectations increased by 5.56 to a value of 62.50.
Concerns relating to workforce attraction and retention remain the number one concern with 90% of surveyed IBC executives listing it as a primary business challenge. An unfavorable business climate tied specifically to supply chain challenges was the second primary concern cited by 55% of IBC executives. The cost of products and services continues to round out the top three business challenges with 50% of IBC members reporting inflation as a core concern.
“These results show a continued resiliency among IBC companies and the state of Iowa as a whole,” Iowa Business Council President Joe Murphy said in a statement. “Iowa business leaders remain agile and skilled in their ability to plan for potential future disruptions while continuing to put forward pro-growth strategies throughout our state.”
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 state-wide impact, especially when considering that IBC companies have a presence in all 99 counties. To review previous Economic Outlook Surveys, please visit www.iowabusinesscouncil.org/news/eos.
