The Iowa Leading Indicators Index decreased 0.3% in June to 110.5 from 110.8 in May 2022. For the first time since December 2021, the monthly diffusion index registered below 50 with a decrease to 43.8 in June from 50 in May.

The Iowa nonfarm employment coincident index saw a 0.23% increase in June, marking the 15th consecutive month of growth.

Three of the eight components increased month over month in June 2022: the agricultural futures profit index, average weekly unemployment claims and residential building permits.

The Iowa Stock Market Index, the national yield spread, the new orders index and diesel fuel consumption detracted from the index. Average manufacturing hours contributed no change to the index because there was no change in the component from last month.

The agricultural futures profit index showed both grain commodities and lean hogs expecting profits during June while profits for live cattle decreased slightly. The June crush margin for hogs increased 17.7% from May and the crush margin for cattle decreased 0.4%.

The 12-month moving average of average weekly unemployment claims decreased in June from 2,021 to 1,963. Unemployment claims were 33.9% below June 2021 claims and 57.5% below average historical claims for June.

Residential building permits issued in June 2022 were at 1,481, up from 1,359 in June last year. The 12-month moving average rose to 1,128 in June from 1,118 in May. June 2022 permits were 9% above June 2021 and 24.6% above the monthly historical average.

Diesel fuel consumption decreased 3.2% between June 2021 and June 2022. The 12-month moving average decreased to 67.78 million gallons in June from 67.95 million in May.

Only one of the 29 companies on the Iowa Stock Market Index gained value and none of the 10 financial sector companies saw gains. The Iowa Stock Market Index decreased to 122.92 in June from 141.88 in May.

During June, the yield spread decreased to 1.6% from 1.91% in May. June is the 18th month in a row since December 2020 that the yield spread has been at or above 1%. The long-term rate increased 24 basis points while the short-term rate increased 55 basis points.

The new orders index in June 2022 decreased to 52.8 compared with 56.6 in May. The 12-month moving average of the new orders index has decreased to 65.26 from 75.48 in June 2021.

The full report is available online.