The latest reading on the economy from the Iowa Business Council is basically unchanged from the first quarter of the year.

The council, which includes the top executives of 20 of the largest businesses in the state, the three Regent university presidents, and Iowa’s largest banking association, completed a survey in the second half of August.

The overall Economic Outlook Survey index fell to 61.3, a point lower than the end of the first quarter, but 12.6 points higher than the second quarter of 2009.

The sales index was two points higher than last quarter and 15 points above the second quarter of 2009. Ninety percent of the chief executive officers  expect steady or higher sales over the next six months, while 15 percent are projecting substantially higher sales and 20 percent are predicting no change.  Ten percent of survey respondents expect sales levels to decline.

The capital spending index was two points below last quarter, but nine points higher than the same quarter of 2009. Eighty-five percent of the business council members expect steady or increased capital spending levels through February 2011.  Fifteen percent of survey respondents expect investments in facilities and equipment to decline.

Tom Aller, chairman of the Iowa Business Council, said the survey results suggest that the economy is still unpredictable.

“The question appears to be whether recovery momentum can be sustained,” said Aller, president of Interstate Power & Light. “In essence, is business activity pausing to adjust strategically before continuing forward or has growth peaked and expansion been maximized? 

“Most certainly, the resiliency of the Iowa economy continues to be tested.”