The Iowa Business Council (IBC) today released its fourth-quarter 2008 overall economic outlook survey index (OSI), which came in 20 points lower than the previous quarter and last year’s outlook.

The overall OSI for the fourth quarter was 43.3, compared to 66.3 in the third quarter. Last year’s fourth-quarter overall OSI was also 66.3.

The survey, which was completed by 19 corporate members of the IBC during the second and third weeks of November, includes three key indicators that are used to measure economic activity: sales OSI, capital spending OSI and employment OSI, which are measured on a 100-point scale.

For the fourth quarter, the sales OSI was 51, which is 12 points lower than last quarter and 17 points lower than the 2007 Q4 survey.

The capital spending OSI marked a much greater change, decreasing by 24 points to 41. Last quarter, the capital spending OSI was 65 and in the 2007Q4 survey it was 71.

The third indicator, the employment OSI, also reflected a tumultuous business climate and was the lowest of the three indicators. For the fourth quarter, the employment OSI was 38, or 24 points lower than the previous quarter and 22 points lower than the same period a year ago.

“Through the third quarter of 2008, Iowa’s well-managed companies and productive work force have, in most instances, been able to sufficiently navigate the turbulent national and world markets,” Max Phillips, IBC chair and president of Qwest – Iowa and South Dakota, said in a release. “However, as many of the products and services produced in Iowa are exported across state lines and international borders, the effects of a sustained global economic downturn are beginning to be reflected in the key economic outlook survey indicators.”