IBC's 2022 Q4 Economic Outlook Survey Released
IBC Projects Positive Six-Month Economic Outlook
EOS scores indicate continued resiliency in Iowa’s economy
DES MOINES, IA – 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 50, 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. 77% 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 www.iowabusinesscouncil.org.