The Iowa Leading Indicators Index, a measure of the state economy that is compiled by the Iowa Department of Revenue, fell to 106.7 in September from 107.2 in August, marking the ninth straight month of declines.

Three components that are measured for gains and losses registered an increase in September.

However, the struggling farm commodity markets are a drag on the overall state economy, according to a release today from the Department of Revenue. 

“Although the weakness is stemming largely from Iowa’s agricultural sector and spillovers into manufacturing, the persistent widespread weakness across the index components in September continues to suggest future softness in Iowa’s overall economy,” according to the release.

Seven components of the index have experienced a decrease of 0.5 percent for six months or more. Declines were registered in the agriculture futures index, average manufacturing hours, diesel fuel consumption, the Iowa stock market index, new orders and residential building permits, with an increase in weekly unemployment claims also counting against the index.

In September, improvements were registered in diesel fuel consumption, yield spread and average weekly unemployment claims. Diesel fuel consumption experienced its first positive contribution to the index in five months. Read the report online.