IBC's 2022 Q3 Economic Outlook Survey Released
October 3, 2022
IBC Projects Positive Six-Month Economic Outlook
Overall EOS score continues descending trend
DES MOINES, IA – The Iowa Business Council (IBC) has released its third-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 50, sentiment is positive. The third-quarter survey's overall economic outlook index is 58.75, down 5.13 index points from the second-quarter report.
While the survey clearly indicates continued positive sentiment for Iowa’s economy, the results do mark three straight quarters of declining overall optimism. Index scores further dropped in other categories as long-term concerns relating to workforce attraction, inflation, and overall business climate continue to mount.
Sales expectations decreased 6.52 index points from the previous quarter’s findings to a value of 58.75. Additionally, capital spending expectations decreased by 10.41 index points to 56.25. While both categories remain in positive territory, quarter-over-quarter declines indicate beginning phases of trepidation among IBC members.
While the employment index increased 1.53 index points to 61.25 from the second quarter, 95% of IBC members surveyed report that it is somewhat to very difficult to hire employees right now.
Other statistics captured in the survey show 85% of IBC members citing attracting and retaining a quality workforce as the primary business challenge. 80% of members further name an unfavorable business climate (supply chain, infrastructure, regulations) and 60% report inflation as a top concern facing Iowa businesses.
“While IBC members remain optimistic about the future health of our economy, there is a growing concern as national and international challenges continue to negatively impact Iowa businesses,” stated Tim Yaggi, President & CEO of Pella Corporation and Chair of the Iowa Business Council. “Our policy priorities for next year will continue to focus on areas that improve Iowa’s business competitiveness and fulfill our workforce needs. We believe a collaborative effort with policy makers can help mitigate our economic challenges and keep our state’s economy healthy.”
“Iowa has always weathered economic headwinds more effectively than other states and today’s results continue to showcase our state’s resiliency in the face of adversity,” 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 www.iowabusinesscouncil.org.