The Iowa Leading Indicators Index increased to 109.6 in October, up 0.1% from 109.5 in September. The monthly diffusion index increased to 62.5 in October from 56.3 in September.

The Iowa nonfarm employment coincident index recorded its 19th month of growth with a 0.24% increase in October.

Only three of the eight component indicators increased more than 0.05% over the last
half-year: the agricultural futures profits index, average weekly unemployment claims, and
diesel fuel consumption.

Five of the eight components increased month over month in October: the Iowa Stock Market
Index, the agricultural futures profit index, diesel fuel consumption, average manufacturing hours, and average weekly unemployment claims. The new orders index, residential building permits and the national yield spread detracted from the index.

During October 2022, 18 of the 28 companies on the Iowa Stock Market Index gained value, and seven of the 10 financial-sector companies increased. With nearly three-fourths of the stocks experiencing gains, the stock market index increased to 132.97 in October from a revised 124.99 in September.

The agricultural futures profit index showed in October that profit increases were expected in both crop commodities and livestock commodities. Compared with last year, new crop corn prices were 27.8% higher while soybean prices were 12.3% higher. The October crush margin for cattle increased 10.1% from September while the crush margin for hogs increased 1.1%.

Diesel fuel consumption increased 2.8% between October 2021 and October 2022. The 12-month moving average increased to 68.17 million gallons in October from 68.00 million in September.

The 12-month moving average of average weekly manufacturing hours increased to 39.17 in October from a revised 39.12 in September. In October 2022, average hours were 39.7, above the 39.1 hours in October 2021, and nearly two hours below the historical monthly average.

In October, the 12-month moving average of average weekly unemployment claims decreased from 1,852 to 1,810. Unemployment claims were 26.1% below October 2021 claims and 53.7% below average historical claims for October.

The new orders index in October 2022 increased sharply to 57.4, from 45.8 in September. However, the 12-month moving average of the new orders index has decreased to 59.19 from 60.56 in October 2021.

The yield spread decreased to 0.11% in October from 0.30% in September. October is the fourth month in a row since December 2020 that the yield spread has been below 1.0%. The long-term rate increased 46 basis points while the short-term rate increased 65 basis points.

Residential building permits were at 1,209 in October, down from 1,557 last year. The 12-month moving average decreased to 1,084 in October from 1,113 in September. October 2022 permits were 22.4% below October 2021, and 4.3% below the monthly historical average.

The full report is available online.