Iowa leading indicators index rises

CEDAR RAPIDS - The Iowa Leading Indicators Index increased to 109.4 in September 2014 from 109.2 in August, with five of the eight index components positive contributors for the month.

The Iowa Department of Revenue said positive contributors were residential building permits, diesel fuel consumption, the yield spread between 10-year Treasury bonds and three-month Treasury bills, the Iowa stock market index, and the agricultural futures profits index.

The 12-month moving average of residential building permits rose sharply in September, increasing to 952, the highest it has been since September 2007. September 2014 permits were up 68 percent from September 2013, and 39.7 percent above the historical average for September (1998-2013).

Diesel fuel consumption showed an increase in September after a slight downturn in August. The 12-month moving average of diesel fuel consumption, a measure of semi-truck traffic within and across Iowa, increased 3.3 percent.

The yield spread between 10-year Treasury bonds and three-month Treasury bills rose with the long-term interest rate increasing 11 basis points and the short-term interest rate decreasing one basis point from August.

Twenty-five of the 33 stocks in the Iowa stock market index experienced positive gains, with 10 of the 11 financial-sector stocks experiencing a positive gain. With the increases, the index bounced back from two months of decline, registering at 105.35, up from 103.53 in August.

The overall gain in the agricultural futures profits index was driven by hogs and cattle. Near futures contract livestock prices continued at record levels with hog prices for September up 15.9 percent over last year.

The three negative contributors to the leading indicators index were the new orders index, average weekly unemployment claims and average weekly manufacturing hours.