Iowa indicators up slightly in June

An index of economic indicators used to predict Iowa tax revenues ticked upward ever so slightly in June.

The Iowa Leading Indicators Index registered a gain of 0.1 percent in June 2012 to 105, up from May's level of 104.9. The six-month annualized trend in the index was positive for the fifth straight month, and indicates Iowa's employment growth will remain positive into the fall, according to the Iowa Department of Revenue.

Manufacturing hours were the largest positive index contributor. Manufacturing hours were up 5.1 percent over June 2011 and up 0.4 percent since May.

The new orders index also showed a major positive contributor, standing at 74.7 versus 59.1 in June 2011.

The largest negative contributor for the month was the agricultural futures index. The 12-month moving average of expected profits for three of four commodities tracked by the agricultural futures index was down in June.

The impact of the national drought on grain prices did not take effect until July, but in June the price of corn was down 17.3 percent from the June 2011 price, and the average price of soybeans was down 0.2 percent from June 2011.

Production costs for soybeans are expected to be 10.3 percent higher than a year ago.