IBC's 2024 Q1 Economic Outlook Survey Released
April 3, 2024
IBC Projects Positive Six-Month Economic Outlook
First quarter survey results show positive gains for key indicators
DES MOINES, IA – The Iowa Business Council (IBC) released its first-quarter Economic Outlook Survey (EOS) for 2024. 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 is 63.16, an increase of 3.51 points from the previous quarter and 2.66 points above the historical average of 60.50.
The first-quarter survey shows meaningful, positive changes in overall outlook after two quarters of relatively flat movement. Overall, IBC members retain a positive sentiment regarding Iowa’s overall economy.
Q1 sales expectations among IBC members increased by 9.22 index points to a value of 67.11. Capital spending expectations decreased by 3.95 index points to 63.16, while employment expectations increased by 5.26 points to a value of 59.21.
Concerns relating to workforce attraction and retention remain the number one concern with 68% of surveyed IBC executives listing it as a primary business challenge. Inflation was the second most cited business challenge with 53% of IBC executives listing the increasing cost of products and service inputs as a concern. An unfavorable business climate (national supply chain, infrastructure, and federal regulations) was cited by 47% of IBC executives to round out the top three primary business concerns.
From a workforce perspective, 79% of IBC executives surveyed report that it is somewhat to very difficult to currently hire employees, down from 85% from the 2023 fourth-quarter survey.
“The first quarter findings show continued optimism in Iowa’s economy,” stated Phil Jasper, President of Raytheon, and Chair of the Iowa Business Council. “With sizable increases in most categories, these results further indicate an acceleration of growth for Iowa’s overall business climate.”
“As we begin the final stretch of the Iowa legislative session, lawmakers should prioritize their efforts on enhancing Iowa’s tax competitiveness, increasing access to meaningful workforce strategies including work-based learning, and expanding housing opportunities and development across the state,” added Iowa Business Council President Joe Murphy. “Taken together, these initiatives provide the opportunity to expand economic opportunity for all Iowans.”
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 22 members are the chief decision makers of major Iowa employers. Employing over 160,000 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; Wells Enterprises, Inc; and Workiva.
