Iowa Business Council has confident outlook

DES MOINES - The state's largest businesses anticipate sustaining or increasing employment and capital spending over the next six months, according to the Iowa Business Council's economic outlook survey. But they believe sales will fall slightly.

The Iowa Business Council, made up of top executives of the state's largest businesses, the three regent university presidents and the president of the Iowa Banking Association, conducts the economic outlook survey quarterly to get an idea of trends in the state's economy.

The overall economic outlook survey index inched up to 65 in the third quarter, one point higher than in the second quarter and four points ahead of this time last year (61).

The capital spending index hit 66 - six points higher than last quarter (60) and one point higher than the same quarter last in 2013.

About 95 percent of IBC members said they expect steady or increased capital spending levels through February 2015, with 14 percent expecting substantially higher sales, 38 percent expecting higher sales and 43 percent expecting no change.

The employment index remained at 63, the same level as three months ago, but significantly higher than this time last year when it sat at 52.

Ninety percent of survey respondents forecast hiring levels to remain steady or grow in the upcoming months, with 5 percent expecting them to be substantially higher, 48 percent expecting them to be higher and 38 percent expecting no change.

The sales index fell two points from last quarter to 66 and was one point below a year ago.

About 86 percent of CEOs anticipate sales to remain steady or increase - 5 percent believe they will be substantially higher, 67 percent believe they will be higher and 14 percent believe there will be no change.

'The confidence of employers in terms of hiring remains firm, which is a hopeful indicator for the long-term,” said Larry Zimpleman, the chairman, president and CEO of Principal Financial Group in Des Moines and 2014 Chair of the Iowa Business Council.