Large Iowa employers see better economic times ahead

Leaders of 21 of the largest Iowa employers forsee improving business conditions over the next six months, according to the Iowa Business Council's quarterly Overall Economic Outlook Survey Index.

A survey of 21 corporate membes of the Iowa Business Council in late November found capital spending plans significantly higher than last quarter, hiring expectations modestly higher, and sales expectations about the same.

“This quarter's survey results indicate that many companies are expanding their operations, possibly anticipating greater consumer purchasing activity in 2011,” said council Chair Tom Aller, president of Interstate Power & Light.

Employers are still cautious in their employment projections, however.

“Given the tought economy that business has dealt with over the last few years, attaining levels of steady long-term growth within the many different industry and service sectors represented on the council remains the goal,” Aller said.

The overall index rose to 64.7 for the upcoming six-month period, up three points from the last quarterly survey and 17 points from the survey conducted one year previous.

A index score of 50 means business sentiment is average, while scores above 50 are considered positive and those below are considered negative.

Executive sentiment on sales prospects generated the highest index score, at 69, while capital spending generated a 66 and employment generated a 59.

Even the employment score of 59 is 15 points higher than results of the year-previous survey.