IBC's 2024 Q3 Economic Outlook Survey Released
IBC Projects Positive Six-Month Economic Outlook
Third quarter survey results remain steady
DES MOINES, IA –
The Iowa Business Council (IBC) has released its third-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 56.67, an increase of 1.41 points from the previous quarter, but down by more than three points from the historical average of 60.38.
All three categories remained in positive territory with low levels of fluctuation across the sub-indexes.
- Sales expectations increased 2.11 points to a value of 60.0
- Capital spending expectations increased 2.30 points to a value of 56.25
- Employment expectations were essentially flat with a modest 0.2 point decline to a value of 53.75
“As Iowa continues to navigate constantly changing dynamics in the economy, IBC executives remain positive on future growth opportunities in our state. While employment expectations have cooled for two straight quarters, capital expenditures have rebounded from the second quarter.” stated Phil Jasper, President of Raytheon and Chair of the Iowa Business Council. “The capital expenditure increase is significant as Iowa’s leading business leaders project increasing investments in equipment, technology, and other assets to increase growth and opportunity in Iowa despite continued trepidation in the national economy.”
For the first time this year, concerns relating to an unfavorable domestic economy registered as the primary challenge facing Iowa businesses, cited by 50% of those surveyed. An unfavorable business climate (national supply chain, infrastructure, and federal regulations) and workforce attraction and retention rounded out the top three primary concerns with both categories being cited by 45% of IBC executives. Notably, concerns relating to inflation fell out of the top three primary business concerns for the first time since 2021.
“Iowa Business Council members have done an extraordinary job in managing unprecedented long-term uncertainty. As we enter the final quarter of the year, we are focusing on policy initiatives that will set the stage for increased economic activity and opportunity in 2025,” 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.
*Special note: the IBC Q3 survey results were captured prior to the Federal Reserve’s 50 basis points cut.
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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 150,000 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.
