Dave DeWitte, CR Gazette –
The index used by state officials to forecast state revenues increased slightly for the fifth consecutive month in February.
The Iowa Leading Indicators Index increased 0.1 percent to 104.7, the Iowa Department of Revenue reported. The six-month annualized change in the index became positive for the first time in six months.
The recent movement of the index suggests that Iowa employment growth will be positive but slow this spring, the department said in a statement.
The index is a composite index of eight economic measurements. Four of the eight components improved, with the largest improvement in building permits.
Building permits in February were up 149 from February 2011, which caused the 12-month moving average for building permits to increase 650.
The number of building permits still remains 47.8 percent below the historical February average of 699 from 1998 through 2008.
Grain prices and the new orders index were the two largest negative contributors. It was the third consecutive month that grain prices were a drag on the leading indicators. The price of soybeans increased from January, but remained 5.7 percent below February 2011 levels.
Positive indicators included unemployment insurance claims, the Iowa stock market index and average manufacturing hours. It was the 28th consecutive month of decline in unemployment insurance claims.
