Iowa business activity expected to cool

A survey of the CEOs of Iowa's largest employers and the Iowa Banking Association found economic activity expected to cool over the next six months.

The Iowa Business Council overall economic outlook survey index is 57, three points less than the final quarter of 2015 and eight points behind this time last year. The survey was completed during the second half of February

Eighty-five percent of the CEOs expect steady or increased sales over the next six months. Fifteen percent of the survey respondents expect sales levels to decrease.

Eighty-five percent of IBC corporate members expect steady or increased capital spending through August 2016. Fifteen percent expect capital spending to decrease.

Eighty percent of the IBC members surveyed expect hiring levels for the next six months to remain steady or grow. Twenty percent expect employment needs to decline.

'Volatility in global markets and currency exchanges is impacting business activity in this country,” said Mike Wells, IBC chairman and CEO of Wells Enterprises in Le Mars, in a news release.

'Until commodity prices rise and the U.S. dollar stabilizes, many business segments will be challenged to expand markets and add to their workforce.”

The IBC overall economic outlook survey index measures the sentiment of member executives projecting business activity six months into the future.

An IBC outlook survey index of 50 indicates that the business sentiment is average. A figure above 50 indicates positive sentiment, while a reading below 50 indicates negative sentiment.