IBC's 2022 Q2 Economic Outlook Survey Released

June 28, 2022

IBC Projects Positive Six-Month Economic Outlook
Sales and Employment Expectations Decrease, While Capital Spending Rises

DES MOINES, IA – The Iowa Business Council (IBC) has released its second-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 second-quarter survey's overall economic outlook index is 63.88. The results project confidence for the eighth quarter in a row. However, index numbers dropped in most categories amidst ongoing concerns pertaining to labor shortages, supply chain issues and inflation.   

Sales expectations decreased 4.46 points from the first quarter’s findings to an index value of 65.27. Conversely, capital spending expectations increased by 2.19 points to 66.66. While each of these index scores remains positive, it reflects ongoing economic factors such as inflation, supply chain issues and global unrest.

The employment index dropped 3.43 points to 59.72. Most respondents indicate that hiring remains a top concern, with 72% declaring the process is difficult or very difficult. Members report more than 11,000 current job openings across the state.

When asked about primary business challenges, leaders ranked attracting/developing/retaining a quality workforce first amongst their concerns (88%). Unfavorable business climate (supply chain issues, infrastructure, regulations, taxes) ranked second (72%). Cost of product/service inputs ranked third (66%).  

Supply chain conditions are not expected to change much in the next six months. A majority (83%) of respondents expect no change, while 11% anticipate improvements.

“Iowa companies remain optimistic but are clear about the challenges that lie ahead in the coming months,” says Tim Yaggi, President & CEO of Pella Corporation and Chair of the Iowa Business Council. “Over the last two years, our member companies have proven they are resilient to national and international pressures. Business leaders are managing through inflation, supply chain issues and workforce challenges, but expect stable demand.”

“As sales expectations decline and capital spending projections increase, it is no surprise that the overall index score has dropped. However, our members continue to believe in Iowa’s economic fortitude,” explains Iowa Business Council Executive Director Joe Murphy. “Over the next six months, company leaders will be taking all the necessary steps to prepare for potential uncertainties that may lie ahead.”

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.
 

###

About the Iowa Business Council

The Iowa Business Council (IBC) is a nonpartisan, nonprofit organization whose 20 members are the chief decision makers of major Iowa employers. Employing over 190,000 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; 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 Wells Enterprises, Inc.

 

Return to News

Related News

The Iowa Business Council (IBC) has released its first-quarter Economic Outlook Survey for 2022. The report measures member expectations for sales, capital spending and employment for the next six months. 

read more

The Iowa Business Council (IBC) has released its fourth-quarter Economic Outlook Survey for 2021. 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 68.86. In addition to being the sixth positive quarter in a row read more

The Iowa Business Council (IBC) has released its third-quarter Economic Outlook Survey for 2021. The report measures member expectations for sales, capital spending and employment for the next six months.

read more

The Iowa Business Council (IBC) has released its first-quarter Economic Outlook Survey for 2021. 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 first-quarter survey's overall economic outlook index is 60.42. This marks the third positive quarter in a row, projecting continued confidence as the state emerges from the pandemic.

read more

The Iowa Business Council (IBC) released its fourth-quarter Economic Outlook Survey for 2020. The survey's overall economic outlook index rose to 62.5, increasing 3.78 points from the third quarter of 2020. This marks the second quarter in a row where the index has measured above 50, a finding that represents continued positive economic sentiment as the state emerges from the pandemic.

read more

The Iowa Business Council (IBC) released its fourth-quarter Economic Outlook Survey for 2020. The survey's overall economic outlook index rose to 62.5, increasing 3.78 points from the third quarter of 2020.

read more
Iowa Business Council today released its Q3 2019 Economic Outlook Survey – a composite of members expectations for sales, capital spending and employment for the next six months. Confidence weakened among Iowa business leaders, likely due to political and global market uncertainty and a disruptive regulatory climate. read more

The Iowa Business Council (IBC) members express a positive overall business sentiment according to the quarterly economic outlook survey released today. The survey results reinforced a strong economy and overall growth for the next six months. In addition, members revealed potential disruptors for the following year: 35 percent of members cited trade and its global economic impact as factors and another 15 percent said weather could pose a problem in agricultural sectors.

read more

In the Iowa Business Council (IBC) quarterly economic outlook survey, members express economic optimism but challenges remain in attracting and retaining a quality workforce. This has been a consistent theme throughout the past year for IBC members, with nearly 70 percent of IBC members citing either engineering, IT or healthcare as key job positions they are unable or struggling to fill within the state.

read more

IBC members report high hopes for 2019 in the IBC's latest economic outlook survey. This optimism is bolstered by the fact that two thirds of the members anticipate higher sales in the next six months. To support this projected sales growth, 60 percent of respondents expect to add to their workforce, and half project an increase in capital spending. 

read more

Iowa's economy is at its strongest in 10 years according to the IBC's latest quarterly economic outlook survey. This quarter's index number for capital spending, 70, came in as the highest recorded number for this metric in the past ten years, while the overall index number from the second quarter of this year was the highest overall index number reported in ten years. 

read more

Iowa Business Council members express continued economic optimism in the IBC’s quarterly economic outlook survey released today, with 90 percent of IBC members anticipating higher sales in the next six months. To support this projected sales growth, two thirds of IBC members expect to add to their workforce, and 60 percent project an increase in capital spending. 

read more

Iowa's largest employers expect continued growth for the 2018 economy, with 80 percent of the Iowa Business Council members anticipating higher sales in the next six months. To support this projected growth, IBC members expect increases in both capital spending and employment. 

read more

Iowa's largest companies report a positive outlook for the 2018 economy.  According to the Economic Outlook Survey, a majority of the Iowa Business Council members anticipate an increase in sales, capital spending, and employment during the first half of 2018. 

read more