ABI Survey: Growth expectations shrink for third quarter

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Fewer Iowa business leaders are optimistic about their company’s sales growth potential for the remainder of 2019, according to results from the latest survey by the Iowa Association of Business and Industry. Of the 32 business leaders who responded, 47% said they expect sales to expand, while 41% expect sales to stay the same. The percentage expecting sales expansion was down 26 percentage points from the last quarter and down 27 percentage points from a year ago. ABI President Mike Ralston said he’s not alarmed by the decline. “It’s a dramatic drop,” he said. “Yet the fact that almost half of Iowa companies expect growth is great news for Iowa’s economy.” More than one-third — 38% — of survey respondents said they expect their head count to grow in the next quarter, while just over 9% expect fewer employees in the third quarter. Capital expenditures are planned by 75% of respondents in the next quarter, down from 87% in the second quarter. A shortage of skilled labor continues to be Iowa business leaders’ top concern in 2019.