Iowa Business Council bullish on economy

The Iowa Business Council released its second-quarter Economic Outlook Survey results Monday, anticipating an increase in employment in the coming months.

Most of the council members expect to sustain or increase hiring over the next six months. Roughly 57 percent are anticipating an employment increase, while 29 percent anticipate no change. Only 14 percent of the CEOs anticipate any type of decrease in employment.

The employment index was pushed six points higher than three months ago and five points ahead of this time last year, matching the historical high for the employment rating of 63 on the index, which was reached in 2008 and 2012.

'After a few quarters of steady sales and capital spending numbers, employers appear to be gaining confidence in terms of hiring,” said Larry Zimpleman, IBC chairman. 'The challenge will be to sustain this trend for the long-term.”

Aside from a projected increase in employment, the survey reported no change in sales from last quarter, but a two-point drop from a year ago. Respondents said they were expecting steady or increased sales over the next six months, with 10 percent expecting substantially higher sales, 57 percent expecting higher sales, and 24 percent anticipating no change.

Capital spending for the second quarter was a point lower than last quarter and four points behind this time last year. Members expect mostly steady spending levels through November, with 57 percent anticipating no change, and an additional 34 percent expecting higher levels of capital spending.

The Iowa Business Council is composed of the top executives of the largest businesses in Iowa, the three regent university presidents, and the president and CEO of the Iowa Banking Association.