IBC's 2024 Q2 Economic Outlook Survey Released
July 2, 2024
IBC Projects Positive Six-Month Economic Outlook
However, second quarter survey results decline across all categories
DES MOINES, IA –
The Iowa Business Council (IBC) released its second-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 55.26, a decrease of 7.9 points from the previous quarter and 5.17 points below the historical average of 60.43.
While overall sentiment remains positive, there are growing and increased concerns across all three subcategories.
- Sales expectations were down 9.21 points to a value of 57.89
- Capital spending expectations were down 9.21 points to a value of 53.95
- Employment expectations were down 5.26 points to a value of 53.95
“While IBC members continue to view Iowa’s economy in a positive light, we are clear-eyed with respect to the persistent challenges facing our companies. Whether that be navigating stressed supply chains, continued workforce shortages, or combatting inflation, Iowa companies are not immune to challenges on a national scale and that sentiment is reflected in the latest survey results,” stated Phil Jasper, President of Raytheon and Chair of the Iowa Business Council.
Concerns relating to workforce attraction and retention remain the number one concern with 63% of surveyed IBC executives listing it as a primary business challenge. An unfavorable business climate (national supply chain, infrastructure, and federal regulations) was cited by 47% of IBC executives while challenges surrounding inflation and growing concerns about the domestic economy tied with 32% to round out the top three primary business concerns.
From a workforce perspective, 68% 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.
“Despite decreases across all three surveyed metrics, the IBC retains a positive outlook for Iowa’s economy. As they always have, Iowa’s leading companies continue to skillfully navigate a host of challenges while keeping an eye towards future opportunities for investment and expansion in Iowa,” added Joe Murphy, IBC President.
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.
