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Report: Iowa economy dips; close to contraction

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The Iowa Department of Revenue reports that continued weakness in the agriculture sector caused some economic indicators to dip close to a level that would indicate a contraction. The worst news seemed to come from agriculture. During the first quarter, livestock prices failed to offset weaker crop prices. As these key farm commodity prices fall, farm income decreases and investment in farm equipment stalls, the department reported. The declining demand in farm equipment is a drag on Iowa’s manufacturing sector. The new orders index showed signals of weakness in manufacturing over the last six months. Furthermore, Iowa’s agricultural stocks, which account for 34.5 percent of the Iowa stock market index’s value, experienced losses in March.