Iowa business leaders more optimistic about economic fortunes

The top executives of the state's largest businesses are optimistic about Iowa's economy in the next six months.

The Iowa Business Council's second-quarter economic outlook survey index rose to 62, five points ahead of the first quarter (57), but five points behind this time in 2015 (67). The survey was completed by the corporate members of the council during the second half of May.

Ninety percent of the CEOs expect steady or increased sales over the next six months. Seventy percent foresee higher sales, 20 percent expect no change and 10 percent believe sales will decline.

Eighty-five percent of the top executives expect hiring levels for the next six months to remain steady or grow - higher (50 percent), or no change (35 percent). Fifteen percent expect employment needs to decrease.

In the area of capital spending, 40 percent of the CEOs expect steady or increased capital spending through November. Fifty-five percent foresee no change in capital spending during the same period and 5 percent expect investments in facilities and equipment to decrease.

'A healthy dose of optimism returns to business expectations for 2016,” said Mike Wells, chairman of the Iowa Business Council, in a news release. 'Barring unforeseen economic or political events, strong sales expectations bode well for work force activity the remainder of the year.”

The Iowa Business Council is a nonpartisan, non-profit organization whose members are the top executives of the largest Iowa businesses, the Iowa Banking Association and the three Regent university presidents.