Leading Indicators Index points to weakening employment growth
The newest leading indicators report from the Iowa Department of Revenue suggests that the state’s employment growth will weaken over the next three to six months. The Iowa Leading Indicators Index remained unchanged in October at 107.0, the same reading as September. This is the fourth time in the last five months that the index registered at 107.0. With only three of the eight components contributing positively, the monthly diffusion index was 43.8 in October. With a 0.04% increase in October, Iowa’s nonfarm employment index has experienced 24 consecutive months of positive growth. However, the negative annualized six-month ILII value and the six-month diffusion index of 35.7 suggest the broad-based signals of weakness in the Iowa economy continue. The goal of the ILII is to signal turning points in the Iowa economy as measured by employment.