Three potential economic threats for Iowa
So, what indicators out there are keeping our industry experts and economists sleeping with one eye open? We wanted to hear what they are watching in 2016 and beyond. Below are three of the 13 threats that our experts identified in the Jan. 29 edition of the Business Record.
Read all 13 threats here >>>
Read all 13 threats here >>>What is one threat to the economy that you are keeping a watchful eye on and why?
1. Slow population growth
Liesl Eathington
Assistant scientist, Iowa Community Indicators Program, Iowa State University
Liesl Eathington
Assistant scientist, Iowa Community Indicators Program, Iowa State University
“Per 100 births since 2010, Iowa lost 72 residents to deaths, lost four in net exchanges with other states and gained 14 from international migration for a net gain of just 38, compared with the U.S. average net gain of 61 residents per 100 births.”
2. Decline in new orders
Gregory Boal
CEO and chief investment officer, Miles Capital Inc.
Gregory Boal
CEO and chief investment officer, Miles Capital Inc.
“We believe national economic momentum will continue into 2016, although energy will be less of a tailwind as prices are expected to stabilize. In Iowa, beyond the ever-present challenges to agriculture, the decline in new orders is concerning. Manufacturing could face additional challenges, potentially adding to unemployment and consumption headwinds.”
3. Declining oil prices
Robert Burns
President, Coldwell Banker Mid-America Group
Robert Burns
President, Coldwell Banker Mid-America Group
“Lower-than-average oil prices have had a negative effect on the markets, especially the agricultural sector. If the trend continues, it could force employers to make cuts, which would negatively affect housing. Additionally, when commodity and stock prices fall, it typically drives investors to the bond markets. Rising bond prices tend to cause mortgage interest rates to increase.”
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