The original article incorrectly attributed the source of the Iowa Leading Indicators Index. The index is produced by the Iowa Department of Revenue.
Continued upward movement in the Iowa Leading Indicators Index suggests that the state's employment growth will remain positive through the holiday season, the Iowa Department of Revenue said today. Residential building permit activity and Iowa's stock market index were the top two positive contributors to the latest average.
The monthly index recorded a positive 0.3 point-change for September, rising to 105.9 from 105.6 in August. The monthly diffusion index remained at 75, reflecting widespread positive changes among the eight components of the index for the month.
The six-month annualized change in the index continued to be positive -- 1.5 percent -- for the eighth consecutive month and the six-month diffusion index held steady at 75.
For the third consecutive month, the most positive contributor was the number of residential building permits issued. In September. the 12-month moving average for building permits increased to 753 from 721 in August, the highest level since May 2008.
The second-most positive contributor in September was the Iowa stock market index. Of the 34 stocks included in the index, 27 had positive gains for the month, including 10 of the 11 financial-sector companies. Five stocks had double-digit growth in September, and on average, stock values grew by 4.9 percent.
The agricultural futures profits index was the only negative contributor in September. The 12-month moving average of expected profits for livestock fell this month, while expected profits for both grains increased.