Iowa Economic Outlook Index Rose Slightly in Third Quarter
Iowa business leaders report positive sentiment despite ongoing workforce and cost challenges for the next six months.
Updated on Oct. 7, 2026 in Economic Indicators
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The Iowa Business Council released its third-quarter 2026 Economic Outlook Survey, showing an index of 64.91 points. This figure represents a slight increase of 0.1 points from the second quarter, indicating continued positive expectations from the state's major employers.
Why it matters
The index reflects how Iowa operators are positioning for growth amid persistent headwinds. While expansion remains the target, companies are grappling with labor availability and rising operational costs that could impact competitive margins.
The index of 64.91 points, which remains above the historical average of 60.59, reflects the expectations of companies employing 156,000 Iowans. While capital spending expectations rose to 67.10, employment expectations dipped to 56.57.
The players
Iowa Business Council
An organization representing major employers that collectively account for 156,000 jobs in the state.
The details
The report tracks sentiment on a fifty-point scale, where any value above fifty signifies positive growth expectations for the next six months. Current member responses highlight that 58% are prioritizing workforce attraction and retention, while 53% cite the state's business climate as a primary operational challenge. Companies are simultaneously adjusting their capital-spending plans, which sit at 67.10, even as sales expectations softened to 71.05.
Timeline
2004: Economic Outlook Survey began tracking quarterly data.
Q2 2026: Previous quarter baseline for survey metrics.
October 6, 2026: Iowa Business Council released third-quarter survey results.
Next six months: Period covered by current economic expectations.
Market Landscape
The current index of 64.91 points marks a continuation of positive sentiment relative to the long-term historical average established since the survey began in 2004. This data provides a benchmark against which Iowa operators can compare their own growth and hiring cycles.
Operators should monitor these sentiment shifts to gauge whether industry-wide capital spending will increase or stabilize in the coming months. Prioritize evaluating your internal healthcare and insurance budget projections, as nearly half of surveyed peers report these as primary cost hurdles.
The takeaway
While the overall index remains positive at 64.91, the divergence between rising capital spending and cooling employment expectations signals a shift toward efficiency over headcount expansion. Monitor your own labor utilization metrics against this state-wide tightening trend.
Further reading
For broader trends on state performance, see the Economic Indicators section.
More information
Review previous Economic Outlook Surveys on the council's portal.
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