The latest survey of the CEOs of Iowa’s largest companies shows they’re expecting the state’s economy will be cooling off in the coming six months. Elliott Smith is executive director of the Iowa Business Council (IBC).
“The release of our third quarter survey did indicate a bit of a tempering of enthusiasm, I think, for some of the economic activity that we’ve seen lately,” Smith said. The survey employs a 100 point scale, with a score over 50 considered “positive sentiment.”
The IBC’s third quarter Overall Economic Outlook Survey Index was 59 — eight points lower than last quarter and six points lower than one year ago. “I think we are seeing some impact of international economic activity finally resonating here in the state, simply because so much of Iowa’s business activity itself rests on export trade and international business,” Smith said.
The survey shows most of the CEOs anticipate steady or increased hiring levels, sales and capital spending between September and February. But, Smith notes the numbers in all three of those categories are down from previous surveys. “Yes, the survey did back off a little bit from its previous optimism, but I think we’re still in for a decent remainder of 2015,” Smith said. ”
The numbers still remain solidly in positive sentiment territory, so I don’t know if there’s any need to raise red flags of warning yet.”