Posted 14 October, 2026
The Iowa Business Council (IBC) has released its third quarter Economic Outlook Survey (EOS) for 2026. The report measures IBC member expectations for sales, capital spending, and employment for the next six months. If the index measures above 50, sentiment is positive. The survey’s overall economic outlook index for the third quarter is 64.91 points, an increase of 0.1 points from the second quarter. The overall results are more than 4 points higher than the EOS historical average of 60.59.
Minimal change was registered across the three measured subindices compared to the second quarter; however capital spending expectation experienced the largest change. Critically, all three indices measured above the 50-point positive sentiment threshold.
- Sales expectations decreased 1.17 to a value of 71.05
- Capital spending expectations increased 3.21 to a value of 67.10
- Employment expectations decreased by 1.76 points to a value of 56.57
“Capital spending expectations, a key indicator for future growth, posted the strongest positive change among IBC members this quarter,” stated Gage Kent, Chairman & CEO of KENT WORLDWIDE and Chairman of the Iowa Business Council. "This is an encouraging sign that IBC businesses have confidence to invest in their operations in Iowa and positioning themselves in Iowa for the future. These continued positive expectations among IBC members reflect the resilience, resourcefulness and confidence of Iowa’s business community.”
As cited by 58% of IBC members, attracting and retaining a quality workforce remains a top business challenge. An unfavorable business climate (national supply chain, infrastructure, federal regulations) was cited by 53% of IBC members and the cost of healthcare/insurance was cited by 47% of the membership to round out the top three primary business challenges for the third quarter.
“IBC members continue to demonstrate remarkable resiliency in the face of a significant amount of uncertainty,” said Joe Murphy, President of the Iowa Business Council. “Businesses are navigating questions around trade and tariffs, interest rates, inflation, geopolitics, and other economic pressures, yet our members continue to see opportunities for growth and are making investments to position their companies for the future. That resilience and long-term focus are encouraging signs for Iowa’s economy as we look ahead.”
The Economic Outlook Survey has been completed by IBC members on a quarterly basis since 2004. The report provides insight regarding the projected trends for the state of Iowa, which can be used for business and economic planning. The reported trends have a state-wide impact, especially when considering that IBC companies have a presence in all 99 counties. To review previous Economic Outlook Surveys, please visit www.iowabusinesscouncil.org/news/eos.