The Iowa Business Council’s (IBC) Overall Economic Outlook Survey Index (OSI) for the first quarter rose to 66.7, two points higher than the previous quarter and a new overall high, the IBC announced on Tuesday.

The previous high of 66.3 was reached in the fourth quarter of 2007 and first quarter of 2008. The index sat at 54.3 a year ago. An outlook above 50 is positive.

The survey was completed by 19 corporate members of the IBC during the second half of February. Key findings include:

-The sales OSI is 75, six points higher than the previous quarter and 17 points above a year ago, also a historical high.

-The capital spending OSI is 63, three points lower than the last quarter but eight points higher than a year ago.

-The employment OSI is 62, three points higher than the previous quarter and 12 points higher than a year ago.

-In the next six months, 79 percent of businesses expect an increase in sales, 63 percent expect an increase in capital spending and 53 percent expect an increase in employment.
In a separate survey, the Goss Institute’s Business Conditions Index for the nine-state Mid-America region, which includes Iowa, climbed to 63.2 in February from 58.9 in January, the 15th consecutive month of growth. An index of 50 is considered to be neutral growth.

The index was above the neutral level for the 14th straight month in Iowa, climbing to 66.2 from 64. The index is a mathematical average of new orders, production or sales, employment, inventory and delivery lead time, and is compiled by Creighton University MacAllister Chair in Regional Economics Ernest Goss.

“Our surveys over the past several months point to job expansions for durable and nondurable manufacturing and the overall economy well into the third quarter of this year,” Goss said about Iowa in a press release.