Iowa bankers cheery about state of economy

Iowa’s economy will grow in the next six months, according to the first-ever statewide survey of Iowa Bankers Association members.

Fifty-two percent of survey respondents are optimistic the state’s economy will grow in the next six months, and 57 percent said they were optimistic about growth in their local economy during the same time period.

The IBA’s inaugural survey was conducted in January and included banks that are geographically diverse and represent small, mid-size and large metro markets.

The Iowa Business Council issues a similar forecast, but there are some important differences with this report in gauging Iowa’s economic health, said John Sorenson, the association’s president and chief executive officer.

"The IBC study -- and we’re an IBC member -- is major companies across Iowa, while we're trying to bring a flavor of what's happening in all of Iowa's communities, because we have bank representation in almost every community,” Sorensen said. “We tried to pull a representative sample of a good on-the-ground picture of members who are trying to grow their economy.”

The 52 percent optimism for growth, combined with 42 percent who predicted the state’s economy wouldn’t change, combines for an important outlook on the state’s business climate, Sorensen said.

“Really 94 percent indicate it will remain in place or will see growth, so, honestly, I think that's a pretty positive sign, especially in light of the ag economy in our state,” Sorensen said. “The impression is we’re going to have slow, steady growth. There’s general optimism about the economy as a whole.” (full article...)

BY JIM OFFNER, Cedar Valley Business Month Online, February 17, 2015