Sales, capital spending projected to rise in Iowa

A survey of the top executives of Iowa's largest businesses found positive sentiment for the next six months, but employment still is expected to lag into the new year.

The Iowa Business Council fourth-quarter economic outlook survey index came in at 60, one point ahead of the third quarter, but five points behind the fourth quarter of 2014.

The sales index for the fourth quarter was 62, five points higher than the third quarter of 2015, but seven points behind a year ago. Ninety percent of the CEOs expect steady or higher sales over the next six months. Ten percent of the survey respondents expect sales to decline over the same period.

The fourth-quarter capital spending index was steady at 59, but six points behind the survey results for the final quarter of 2014. Ninety percent of the respondents expect steady or increasing capital spending in the first half of 2016 and 10 percent believe capital spending will decline.

The fourth-quarter employment index was 58, three points lower than the third quarter and three points lower than this time last year. Eighty percent expect hiring levels for the next six months to remain steady or grow.

'Business activity for the start of 2016 looks promising in regards to sales, which is typically a leading indicator for this survey,” said Mike Wells, president and CEO of Wells Enterprises in Le Mars and 2015 chairman of the Iowa Business Council, in a news release.

'The focus will be on broadening that momentum to capital spending and employment as the year progresses.”

The Iowa Business Council is a nonpartisan, non-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. Council members identify economic issues, evaluate options, and assist in implementing solutions through collaborative public/private partnerships.