By Dar Danielson (Radio Iowa)

The Iowa Business Council (IBC) has released its third quarter Economic Outlook Survey that gauges the outlook for the next six months.

IBC President Joe Murphy says it’s based on a 100 point scale. “Our overall survey score was 64.91 index points, so just under 65 points, relatively flat, virtually no movement on the overall number from the second quarter, but well above that 50 point threshold that we calculate to have a positive outlook,” Murphy says. Murphy says there’s continue resiliency by members despite some continuing uncertain economic conditions.

He says that’s most evident in the capital spending expectations are up. “And what that’s indicating to us is that companies are not going to be pulling back on their investments within their companies. They’re bullish on their company’s ability to achieve and produce new things over the coming months here,” he says.

Murphy says capital spending is a leading indicator about the expectations for Iowa’s economy. “If there were long-term concerns, we would see that number decrease and we would see it decrease by a lot, but instead we had just about three and one quarter points of an increase,” he says. It is well above the 50 point positive indicator at more than 67 points.

The sales outlook decreased by about one point, but Murphy says they are still well above the positive mark. “I think sales are indicative of future and growing demand in this state,” he says. “And despite the fact that it did decrease very marginally, to have such a positive outlook is a really good thing and I think falls in line with the capital spending expectations.”

Employment expectations did decrease by about two points, but are still well above the positive outlook. “And so while we’re not negative on employment expectations, I think companies are continuing to take a hard look at hiring, freezing hiring in some aspects, and then really not rushing to replace individuals who may leave the organization,” Murphy says. He says finding employees has been an ongoing issue for some time as members are really trying to focus in on attracting and retaining a talented workforce.

The Iowa Business Council is a nonpartisan, nonprofit organization whose 22 members are the chief decision makers of major Iowa employers.