Members of the Iowa Business Council predict the economy will cool slightly in the next six months. The quarterly survey of twenty Iowa corporations shows lower confidence in sales, spending and hiring. I-B-C Executive Director Elliot Smith blames rising interest rates. He says the state’s larger businesses are still doing well, they’re just not projecting as much of an increase in business as they have recently. He says they’re expecting to maintain levels of business, though the pullback could mean they don’t grow.
Fifty-five-percent of executives surveyed said they expect sales to increase in the first half of next year. Compare that with three months ago, when 9 out of ten expected an increase in sales. Still, Smith says members remain cautiously optimistic.
Instead of a fast-paced growth mode for business in Iowa and nationwide, he says there seem “seems to be a bit of a moderation underway.” If the outlook isn’t booming, he at least sees a bit of news that’s not bad. Smith says the good news is that all the Iowa corporations surveyed expect to maintain current employment levels over the next six months, and may increase them. More than half expect to increase sales.