IBC's 2026 Q1 Economic Outlook Survey Released
April 7, 2026
IBC Projects Positive Six-Month Economic Outlook
Sales expectations reach 8-year high
DES MOINES, IA –
The Iowa Business Council (IBC) has released its first quarter Economic Outlook Survey (EOS) for 2026. 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 first quarter is 65.35 points, an increase of 2.19 points from the fourth quarter of 2025 and more than 4.5 points higher than the historical average of 60.47.
Across the three measured subindices, sales expectations provided the largest increase for the second quarter in a row, reaching a threshold not achieved since 2018. Capital spending showed a small increase while employment expectations decreased. Critically, all three indices measured well above the 50-point threshold.
- Sales expectations increased 7.89 to a value of 73.68
- Capital spending expectations increased 1.31 to a value of 64.47
- Employment expectations decreased by 2.64 points to a value of 57.89
“Seeing sales expectations reach their highest level since 2018 is a strong signal that Iowa businesses remain confident in the direction of Iowa’s economy,” stated Gage Kent, CEO of KENT WORLDWIDE and Chairman of the Iowa Business Council. “This optimism drives investment, hiring, and expansion decisions that strengthen our state’s economic momentum and position Iowa for sustained growth in the months ahead.”
Tied as the top business challenges identified by IBC members was the cost of products/service inputs along with attracting and retaining a quality workforce with 53% of the membership citing both challenges. An unfavorable business climate (national supply chain, infrastructure, federal regulations) was cited by 47% of IBC members to round out the top three primary business challenges for the first quarter.
“Iowa Business Council executives continue to showcase exceptional resiliency despite geopolitical challenges and continued strains on Iowa’s agricultural economy,” added Joe Murphy, President of the IBC. “Policymakers can help fuel this optimism by passing meaningful permitting reform at the federal level and property tax reform at the state level.”
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.
###
About the Iowa Business Council
The Iowa Business Council (IBC) is a nonpartisan, nonprofit organization whose 22 members are the chief decision makers of major Iowa employers. Employing over 156,000 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 WORLDWIDE; MercyOne; MidAmerican Energy Company; Musco Lighting; Pella Corporation; Principal; Ruan Transportation Management Systems; Sukup Manufacturing; The Weitz Company; UnityPoint Health; Vermeer Corporation; and Wellmark Blue Cross Blue Shield of Iowa.
