The Iowa Leading Indicators Index remained unchanged at 108.1 in March, due to rounding, despite increasing 0.01%.

The monthly diffusion index increased to 68.8 in March from 62.5 in February. Meanwhile, the Iowa nonfarm employment coincident index recorded a 0.09% decrease in March and has declined in 17 of the last 18 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 -2.0% and a six-month diffusion index below 50.0.

Over the past six months, seven of the eight component indicators increased more than 0.05%. Those components include the agricultural futures profits index, the national yield spread, the Iowa Stock Market Index, the new orders index, average weekly manufacturing hours, diesel fuel consumption and initial unemployment insurance claims. Residential building permits decreased more than 0.05% over that period and did not contribute to the six-month diffusion index.

Diesel fuel consumption was the strongest contributor to the index in March. Between March 2025 and March 2026, diesel fuel consumption increased 12.0%. The 12-month moving average increased to 66.09 million gallons in March from 65.57 million in February.

The national yield spread and diesel fuel consumption went from detractors to contributors to the index in March.

The Iowa Stock Market Index was the strongest detractor from the index in March. During the month, only eight of the 27 companies included on the index increased in value, and only one of the nine financial sector companies posted gains. The index decreased to 179.48 in March from 190.32 in February.

The full reports are available on the Iowa Department of Revenue website.