Major businesses in Iowa have a bleak outlook for the next six months.

The Iowa Business Council Overall Economic Outlook Survey Index fell to 35.3, eight points lower than the 2008 fourth-quarter outlook and 31 points lower than a year ago. A reading below 50 signals a negative sentiment.

Fifty-eight percent of the 19 corporate members who participated expect sales to decrease during the next six months, and 42 percent predict steady or increased business activity.

Sixty-eight percent expect capital spending to be lower, and 31 percent expect investments in facilities and equipment to be higher or remain the same.

Fifty-eight percent expect employment levels to be lower; 42 percent expect no change.

“Our survey results from the last two quarters reflect the country’s current economic health, with negative trends now reaching deeper into Iowa’s business environment,” said Mel Haught, chair of the Iowa Business Council and president and CEO of Pella Corp., in a release.

The survey was completed during the third week of February. For more information, go to www.iowabusinesscouncil.org.