The outlook for Iowa’s economy looks more optimistic from the perspective of some of the state’s top business executives heading into 2025, according to the latest quarterly survey from the Iowa Business Council.
Released Tuesday, the survey indicates that large Iowa businesses plan to increase sales, boost employment and increase capital spending over the next six months.
In the survey of executives at 22 of Iowa’s largest employers, the overall Economic Outlook Index was 65.63, an increase of 8.96 points compared to the previous quarter. Any reading above 50 is considered positive.
The quarterly survey, which began in 2004, has a historical average of 60.46.
“We saw a huge rebound at the end of the year,” BAC President Joe Murphy said.
Murphy said the survey results were likely buoyed by the resolution of uncertainties such as the trajectory of interest rates, which have fallen, and the outcome of the election. President-elect Donald Trump, the now Republican-dominated Congress and strengthened Republican majorities in the Iowa Legislature are generally seen as more business-friendly.
“We’re starting to have more certainty in these areas and I think that’s indicated in the survey results when we saw such a big jump in all three categories,” Murphy said.
The investigation indicated that:
- Sales expectations increased by 8.75 points to a value of 68.75
- Capital spending expectations rose 7.81 points to 64.06
- Job expectations increased by 10.31 points to a value of 64.06
An unfavorable business climate – domestic supply chain, infrastructure and federal regulations – was cited as the top business challenge cited by 63% of respondents. Inflation was cited by 50% of survey participants, and 44% cited workforce attraction and retention as rounding out the top three business challenges.
“As we begin the new year, the latest IBC survey results reinforce our members’ overall sense of optimism about Iowa’s economy,” said Gage Kent, CEO of Kent Corp. . and president of the Iowa Business Council, in a press release.
“These numbers reflect encouraging prospects for reduced headwinds,” Kent said. “We look forward to building on this momentum by working closely with the Governor and the Iowa General Assembly throughout the legislative session on policy areas that grow Iowa’s economic vitality.”
Kevin Baskins covers jobs and the economy for the Des Moines Register. Contact him at kbaskins@registermedia.com.