Iowa’s largest employers are predicting modest improvements in indicators of the state’s economy during the next six months, the Iowa Business Council (IBC) said today.

However, expectations remain lower than at this time last year among the IBC’s 20 corporate members, who represent the largest employers in the state.

Nonetheless, the IBC’s second-quarter economic outlook suggests that sales, capital outlays and hiring could improve in the next six months, the IBC said in a news release.

“Today’s survey results present the first hopeful sign that the negative trends we have witnessed lately in Iowa’s business environment may be moderating,” said Mel Haught, IBC chairman and president and CEO of Pella Corp. “While it is premature to say a full rebound is under way, the fact more business segments expect improved activity over the next six months should allow business leaders and Iowa’s work force to be a little more optimistic that the economy may be beginning to stabilize.”

The index for overall economic activity is 38.3, three points higher than the first-quarter index reported in March but 26 points lower than a year ago.

Business leaders reported a sales index of 44, six points higher than last quarter and 27 points lower than a year ago. The outlook for capital spending this quarter is 33, a two-point increase from the first quarter and 33 points lower than last year. The employment index rose one point to 38, still 18 points lower than last year.