Posted 22 October, 2025
The Iowa Business Council (IBC) has released its third quarter Economic Outlook Survey (EOS) for 2025. 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 60.0 points, an increase of 2.59 points from Q2 and essentially even with the historical average of 60.36.
The Q3 EOS subindices experienced sizable shifts compared to the results from the Q2 survey.
- Sales expectations declined 6.39 points to a value of 57.5
- Capital spending expectations increased 8.33 points to a value of 62.5
- Employment expectations increased 5.83 points to a value of 60
65% of IBC survey participants cited an unfavorable business climate (national supply chain, infrastructure, federal regulations) as their primary business challenge. Additionally, workforce attraction/retention and inflation were both cited by 45% of IBC members as top challenges.
The increase in the overall index score reflects largely from the increase in capital spending expectations coupled with the increase in employment expectations. Most IBC members indicated “no change” from the previous quarter in all three categories indicating that economic uncertainty is something business leaders continue to combat.
“Increasing expectations for capital spending is a positive signal for Iowa’s economy despite widespread uncertainty,” stated Gage Kent, CEO of KENT WORLDWIDE and Chairman of the Iowa Business Council. “We encourage policymakers at the state and federal level to continue pursuing legislation that expands business opportunity across all sectors in Iowa.”
“While IBC members remain optimistic about the prospects of Iowa’s overall economy, specific concerns persist around the long-term impact of tariffs on Iowa’s agriculture and manufacturing economies,” stated Joe Murphy, IBC President. “We urge the Trump Administration and our trading partners to quickly come together on trade deals providing access to the global marketplace while enhancing competition.
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 here.