(Des Moines, IA) -- The Iowa Business Council's second-quarter Economic Outlook Survey for 2022 was generally positive, but there were declines in two key areas: sales expectations and employment. The overall economic index is 63.88, anything above 50 is positive. The latest results, however, find numbers dropped due to labor shortages, supply chain issues, and inflation.
The six month outlook finds sales expectations decreasing 4.46 points from the first quarter’s findings to an index value of 65.27. Conversely, capital spending expectations increased by 2.19 points to 66.66. The IBC reports while the scores are positive, it reflects ongoing economic factors.
The employment index dropped 3.43 points to 59.72. Most survey respondents indicate that hiring remains a top concern, with 72% declaring the process is difficult or very difficult. Members report more than 11,000 current job openings across the state.
Supply chain conditions are not expected to change much in the next six months. A majority (83%) of respondents expect no change, while 11% anticipate improvements.
“Iowa companies remain optimistic but are clear about the challenges that lie ahead in the coming months,” says Tim Yaggi, President & CEO of Pella Corporation and Chair of the Iowa Business Council. “Over the last two years, our member companies have proven they are resilient to national and international pressures. Business leaders are managing through inflation, supply chain issues and workforce challenges, but expect stable demand.”
“As sales expectations decline and capital spending projections increase, it is no surprise that the overall index score has dropped. However, our members continue to believe in Iowa’s economic fortitude,” explains Iowa Business Council Executive Director Joe Murphy. “Over the next six months, company leaders will be taking all the necessary steps to prepare for potential uncertainties that may lie ahead.”