FOR IMMEDIATE RELEASE
September 30, 2010
LEADING INDICATORS SHOW CONTINUED IMPROVEMENT IN IOWA’S ECONOMY
DES MOINES – The state’s leading economic indicators have improved for the 11th straight month, showing signs that Iowa’s economy continues to improve.
Released by the Iowa Department of Revenue, the Iowa Leading Indicators Index for August rose to 100.4. That is a 0.6 percent increase from the month of July; July also experienced a 0.6 percent increase from June.
During August, six of eight indicators contributed positively, including increases in the agricultural futures profits index, the new orders index, diesel fuel consumption, average weekly manufacturing hours, and the Iowa stock market index. A continued decrease in the unemployment insurance claims in August also contributed positively to the index. The negative contributors were the national yield spread and new residential building permits.
“Iowa continues to lead the rest of the nation out of the recession,” said Governor Chet Culver. “The leading indicators are a testament to that.”
The Index reflects movement in economic activity. “This latest increase in the index continues an upward trend that began in October 2009,” said Mark Schuling, Director of the Iowa Department of Revenue.
The Iowa Leading Indicators Index is updated monthly and includes series of economic data that provide leading signals for the Iowa labor market, manufacturing sector, financial sector, and agricultural sector. Based on the methodology used by The Conference Board for the National Leading Economic Index, the Iowa Leading Indicators Index provides a signal to the direction of Iowa non-farm employment and major State tax revenue sources six to nine months in the future. Reports are available on the Department of Revenue Web site: http://www.iowa.gov/tax/taxlaw/econindicators.html
Media Contact: Roger Stirler, Iowa Department of Revenue, 515.281.4908