Key state economic indicator improves again in January

A economic index watched closely by state revenue officials rose for its 16th consecutive month in January, suggesting the economic recovery hasn't faltered.

The Iowa Leading Indicators Index, which forecasts the likely future direction of the state's economy, rose to 103.7 in January from December's 103.1 level.

Six of the eight components in the index contributed positively to the change. Residential building permits and average weekly manufacturing hours did not contribute positively. Manufacturing hours were unchanged, while building permits fell slightly.

A second index that tracks non-farm employment improved for the seventh straight month, but only slightly.

The Iowa nonfarm employment coincident index rose 0.07 percent following a modest 0.03 percent rise in December. Changes are based on a 12-month moving average of employment.

Some of the biggest improvements in the leading indicators related to agricultural profits, the stock market, and the interest yield spread - the difference between the yield on th 10-year Treasury bond and the three-month Treasury note.