Iowa bankers are optimistic about the health of the state and local economies over the next six months, according to a survey by the Iowa Bankers Association.

The survey ran the gamut of Iowa banks and found that 52 percent of respondents believe that the state economy will expand, while 57 percent said their local economies will grow over the next six months.

The survey was conducted in January and will be repeated every six months. Bankers were asked about economic growth, hiring, predictions for activity in various market segments, demand for loans, their outlook for interest rates and the challenges to their local economies.

“There are a number of economic surveys, but few focus specifically on Iowa and its unique market segments,” John Sorensen, president and CEO of the Iowa Bankers Association, said in a release. “By surveying Iowa’s bankers, we’ll receive an accurate barometer of our economy from those who work daily to support our consumers, businesses and agriculture.”

About hiring, 57 percent said businesses in their communities will maintain employment levels and 38 percent said employers would hire more workers.

The bankers said the housing and service sectors would experience the most expansion, while 57 percent said agriculture would contract.

They expected the most demand for agriculture operating loans and the least demand for farm real estate loans.

Short- and long-term interest rates will be unchanged over the next six months, according to 76 percent of respondents.

The biggest challenge to local economies will be the ability to find and retain skilled workers, and startups will be affected by the regulatory climate.