The Iowa Business Council’s fourth-quarter Economic Outlook Survey for 2024 shows an increase in optimism from IBC members with an overall economic outlook index of 65.63, up 8.96 points from the previous quarter. That is above the historical average for the survey of 60.46, according to a news release.

The report measures IBC member expectations for sales, capital spending and employment for the next six months. An index score above 50 represents a positive outlook.

All three survey categories experienced growth from the third quarter. Sales increased by 8.75 points to 68.75, capital spending expectations increased 7.81 points to 64.06, and employment expectations increased 10.31 points to 64.06.

“As we enter the new year, the latest IBC survey results reinforce the broad sense of optimism in Iowa’s economy from our members,” Gage Kent, CEO of Kent Corp. and chairman of the Iowa Business Council, said in a prepared statement. “These numbers reflect an encouraging outlook for reduced headwinds. We look forward to capitalizing on this momentum by working closely with the governor and Iowa General Assembly throughout the legislative session on policy areas that expand Iowa’s economic vitality.”

The top primary business challenge, cited by 63% of survey respondents, was an unfavorable business climate, including the national supply chain, infrastructure and federal regulations). Inflation and workforce attraction and retention were the other top business challenges respondents noted.

The Economic Outlook Survey has been completed quarterly by IBC members since 2004. For more information or to review previous surveys, visit the IBC website.