IBC's 2025 Q2 Economic Outlook Survey Released
July 2, 2025
IBC Projects Positive Six-Month Economic Outlook
Economic indicators essentially flat
DES MOINES, IA – The Iowa Business Council (IBC) has released its second 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 50, sentiment is positive. The survey’s overall economic outlook index for the second quarter is essentially flat measuring out at 57.41 points, an increase of 0.27 points from the previous survey and 2.95 points below the historical average of 60.36.
The Q2 EOS results remain effectively in line with the results from the Q1 survey.
- Sales expectations declined 0.4 points to a value of 63.89
- Capital spending expectations declined 0.59 points to a value of 54.17
- Employment expectations increased 1.79 points to a value of 54.17
“The business climate in Iowa seems to be trending in similar fashion to the rest of the country. Iowa businesses have enjoyed an extended run of success in recent years,” stated Gage Kent, CEO of KENT WORLDWIDE® and Chairman of the Iowa Business Council. “We are not immune, however, to cycling due to factors such as inflation, talk of tariff negotiations, and tax policy uncertainty. Nonetheless, we remain very optimistic about future growth prospects.”
56% of survey participants cited both workforce attraction/retention and inflation as the primary business concerns impacting their organizations. An unfavorable business climate (national supply chain, infrastructure, federal regulations) was cited by 44% of those surveyed to round out the top three primary business challenges.
“Iowa Business Council members remain confident in the state’s economic trajectory. While uncertainty continues to influence business decisions, our long-term outlook for growth and opportunity in Iowa remains strong,” stated Joe Murphy, IBC President.
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.
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About the Iowa Business Council
The Iowa Business Council (IBC) is a nonpartisan, nonprofit 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 & 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 Workiva.
