The 2009 third-quarter Iowa Business Council Overall Economic Outlook Survey Index (OSI) rose to 48.7, increasing for the second straight quarter on strength in all three indicators that are used to measure economic activity among the largest employers in the state for the coming six months.

The OSI increased 10.4 points above the second-quarter OSI of 38.3 reported in June, yet remained 14.6 points below the OSI from one year ago.

“Though the overall survey is still expressing a reserved business sentiment for the coming six months, it’s encouraging to see each economic activity indicator move higher for the second consecutive quarter,” said Mel Haught, president and CEO of Pella Corp. and chair of the Iowa Business Council, in a press release.

The survey was conducted by the 20 corporate members of the Iowa Business Council during the third week of August to help show trends in the state’s economy.

The three indicators taken into account are below:

Third-quarter Sales OSI is 54, which is 10 points higher than last quarter, but nine points below a year ago. Increased or steady business activity over the next six months was predicted by 70 percent of CEOs.

Third-quarter Employment OSI is 43, which is five points higher than last quarter, but 19 points below a year ago. Hiring needs are expected to be higher or the same by 60 percent of CEOs.

Third-quarter Capital Spending OCI is 49, which is 16 points higher than last quarter, but 16 points below a year ago. Capital spending levels are expected to stay the same by 65 percent of CEOs.