DES MOINES, IOWA (January 6, 2026) — The Iowa Business Council (IBC) has released its fourth-quarter Economic Outlook Survey (EOS) for 2025. The report measures IBC member expectations for sales, capital spending, and employment for the next six months. If the index measures above fifty, sentiment is positive. The survey’s overall economic outlook index for the fourth quarter is 63.16 points, an increase of 3.16 points from Q3 and more than two points higher than the historical average of 60.40.
Across the three measured subindices, sales expectations generated the most dynamic increase while capital spending and employment expectations measured flat, but still well above the critical fifty-point threshold.
- Sales expectations increased 8.29 to a value of 65.79;
- Capital spending expectations increased .66 to a value of 63.16; and
- Employment expectations increased .53 points to a value of 60.53.
“Such a large increase in sales expectations from IBC members provides important insights into growing demand,” stated Gage Kent, CEO of KENT WORLDWIDE and Chairman of the Iowa Business Council.
“The next six-months are critical as we look to take advantage of this optimism and expand business growth and investment in Iowa.”
The top business challenge identified by IBC members is once again an unfavorable business climate (national supply chain, infrastructure, federal regulations) at 58%, followed by workforce attraction/retention at 53%. The cost of healthcare/insurance was cited by 47% of IBC survey respondents to round out the top three primary business concerns.
“Entering 2026 with a strong sense of optimism is an important indicator for the state’s economy,” stated Joe Murphy, IBC President.
“We look forward to working with the Governor, the Iowa General Assembly, and our federal delegation to put forth pro-business policies that enable more growth across all sectors in Iowa.”
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 iowabusinesscouncil.org/news/eos.
About the Iowa Business Council
The Iowa Business Council (IBC) is a non-partisan, non-profit organization whose 21 members are the chief decision-makers of major Iowa employers. Employing over 150,000 Iowans, IBC member companies have invested billions of dollars of capital in Iowa's commercial infrastructure; lead the way in technology innovation, R&D, and grants procured; and are often the driving financial and volunteer forces behind philanthropic efforts all over the state.
IBC member companies include: Alliant Energy; Atlantic Coca-Cola Bottling Company; Casey’s General Stores Inc; Collins Aerospace; Corteva Agriscience; Deere and Company; Fareway; HNI Corporation; Hy-Vee Inc, Iowa Bankers Association; KENT WORLDWIDE; MercyOne; MidAmerican Energy Company; Pella Corporation; Principal; Ruan Transportation Management Systems; The Weitz Company; UnityPoint Health; Vermeer Corporation; Wellmark Blue Cross Blue Shield of Iowa; and Workiva.
