The Iowa Department of Revenue has released a summary of its latest Iowa Leading Indicators Index, which is an analysis of several economic indicators for the state.

Simple takeaways include:

• Manufacturers and trucking companies are busier.
• National borrowing conditions are tightening.
• Investors are cautious about Iowa-based companies.

The August index increased 0.2% to 107.7 in August. The monthly diffusion index increased to 81.3 in August from 43.8 in July. The Iowa nonfarm employment coincident index recorded a 0.01% increase in August.

The Iowa nonfarm employment coincident index has experienced decreases in eight of the last 10 months. However, long-term trends in the index suggest that nonfarm employment will increase over the next three to six months.

The index was constructed to signal economic turning points with two key metrics that when seen together are considered a signal of a coming contraction: a six-month annualized change in the index below -2% and a six-month diffusion index below 50.

Six of the eight component indicators increased more than 0.05% over the last half-year: the agricultural futures profits index, average manufacturing hours, the Iowa Stock Market index, new orders index, initial unemployment insurance claims (inverted) and residential building permits. The national yield spread and diesel fuel consumption decreased by more than 0.05% during the past six months.

• Diesel fuel consumption, an indicator used to track manufacturing shipments, was the strongest positive contributor to the index in August. Diesel fuel consumption increased 7.7% between August 2024 and August 2025. The 12-month moving average increased to 65.82 million gallons in August from 65.41 million in July.
• The national yield spread and Iowa Stock Market Index went from contributors in July to detractors in August. Residential building permits, the new orders index, diesel fuel consumption, and the agricultural futures profit index went from detractors in July to contributors in August.
• The Iowa Stock Market Index was the strongest detractor to the index in August 2025. During August, 12 of the 27 companies gained value, and three of the nine financial-sector companies increased in value. With less than half of the stocks experiencing gains, the index decreased to 166.10 in August from 170.61 in July.