DES MOINES, IOWA (January 5, 2023) — The Iowa Business Council (IBC) has released its fourth-quarter Economic Outlook Survey for 2022. The report measures member expectations for sales, capital spending, and employment for the next six months. If the index measures above fifty, sentiment is positive. The fourth-quarter survey's overall economic-outlook index is 59.26, up 0.51 index points from the third-quarter report.
The survey results, essentially flat compared to the third-quarter, indicate Iowa’s continued resiliency as world markets and other indices project future economic strife. The results also stop a three-quarter decline in overall optimism.
While the overall survey score stayed level, the capital spending, and employment indexes declined. Capital-spending expectations decreased by 2.08 index points to a value of 54.17 and employment expectations decreased by 5.69 index points to 55.56. Sales expectations increased 9.31 index points to a value of 68.06 compared to the third-quarter.
Concerns relating to workforce attraction and retention remain the number one concern with 83% IBC executives listing it as a primary business challenge. Seventy-seven percent of IBC executives cite inflation as a primary business concern and 56% reported an unfavorable business climate as a top challenge.
From a workforce perspective, 94% of IBC executives surveyed report that it is somewhat to very difficult to hire employees while further reporting more than 7,600 currently open/available positions in Iowa.
“Despite continued concerns relating to workforce attraction and inflation, IBC members remain positive with respect to Iowa’s economic trajectory,” stated Phil Jasper, President of Mission Systems for Collins Aerospace and Chair of the Iowa Business Council. “Iowa remains resilient in the face of difficult and growing economic challenges and we look forward to working with policymakers at all levels to ensure continued growth and prosperity for all Iowans,” he added.
“We enter 2023 aware of the challenges that lay ahead but remain fully committed to IBC’s founding mission to serve as a catalyst for economic growth in Iowa,” said Iowa Business Council Executive Director Joe Murphy.
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 twenty members are the chief decision-makers of major Iowa employers. Employing over 190,000 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; Casey’s General Stores Inc; Collins Aerospace; Corteva Agriscience; Deere and Company; Fareway; HNI Corporation; Hy-Vee Inc, Iowa Bankers Association; Kent Corporation; 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 Wells Enterprises Inc.
