DES MOINES, IA – The Iowa Business Council (IBC) has released its final quarterly Economic Outlook Survey (EOS) for 2023. 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 fourth-quarter survey’s overall economic outlook index is 59.65, a decrease of 0.27 index points from the 2023 third-quarter report.

The fourth-quarter survey reveals minimal changes in the overall outlook index although several categories experienced larger shifts. IBC members retain a positive sentiment regarding Iowa’s overall economy. Q4 sales expectations among IBC members decreased 4.01 to a value of 57.89. Capital spending expectations increased by 6.40 to 67.11, while employment expectations decreased by 3.19 to a value of 53.95.

Concerns relating to workforce attraction and retention remain the number one concern with 74% of surveyed IBC executives listing it as a primary business challenge. Tied for second at 53% were an unfavorable business climate (national supply chain, infrastructure, and regulations) and the cost of products and service inputs. From a workforce perspective, 85% of IBC executives surveyed report that it is somewhat to very difficult to currently hire employees, down from 90% from the third-quarter survey. “Iowa’s economy is in a strong position as we enter 2024,” stated Phil Jasper, President of Raytheon, and Chair of the Iowa Business Council. “Our members remain optimistic about the future growth prospects here in Iowa that will lead to high-quality jobs and innovations throughout our state.”

“With the start of the legislative session, we look forward to working with members of the Iowa General Assembly and Governor Reynolds as we all work towards creating a more prosperous state for everyone,” said Iowa Business Council President 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 www.iowabusinesscouncil.org/news/eos.