Iowa business leaders more positive

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

The Iowa Business Council's fourth-quarter economic outlook survey index edged up to 59, two points ahead of the third quarter (57), but a point behind this time in 2016 (60). The survey was completed by the corporate members of the council during the second half of November.

Ninety percent of the CEOs expect steady or increased sales over the next six months. Ten percent foresee 'substantially higher” sales, 50 percent expect 'higher” sales, 30 percent expect no change and 10 percent believe sales will decline.

In the area of capital spending, 80 percent of the CEOs expect steady or increased capital spending through May 2017. Fifty percent foresee higher sales, 40 percent foresee no change during the same period and 10 percent expect investments in facilities and equipment to decrease.

'Iowa's resilient economy is poised to enter the New Year in a promising position,” said Mike Wells, president and CEO of Wells Enterprises in Le Mars and chairman of the Iowa Business Council, in a statement accompanying the survey. 'Sales levels often serve as a leading indicator for capital spending and employment activity to come, so business leaders see some hope for the start of 2017.”

Eighty percent of the council leaders project employment to remain steady or grow over the first and second quarters of 2017. Twenty percent expect employment needs to decrease.

Survey participants were asked how their company's total spending on federal and state regulatory compliance has changed over the past few years. Sixty percent of the respondents said spending has increased substantially, 15 percent reported spending has increased marginally and 25 percent said spending on compliance has not changed.

The Iowa Business Council is a nonpartisan, not-for-profit organization whose members are the top executives of the largest businesses in the state, the three Regent university presidents and the Iowa Banking Association.