The University’s Institute for Economic Research forecasts an average economy in the coming year, with personal income growth at about two-point-one percent, down a percentage point from the previous year. Institute Director Charles Whiteman says employment growth in the state has been relatively strong the previous two years, but will slow down in 2007.
Whiteman says Iowa is bucking the national trend in one place, durable goods manufacturing employment. Whiteman says Iowa looks to gain more manufacturing jobs in 2007, while nationally the category is in decline. Whiteman says the forecast numbers indicate relatively low inflation and moderate unemployment in the year ahead.
After relatively strong employment growth in the previous two years, Whiteman says things will level off this year. Whiteman says things will be slower than 2006, as the growth rate will slow down, but he says they’re not talking about a downturn. The Institute for Economic research serves as an advisory group to the Governor’s Council of Economic Advisors. The council’s discussions are in turn used by the state’s Revenue Estimating Conference in predicting tax revenue growth.