Leading indicators point to job growth

The Iowa Leading Indicators Index increased from 108.9 in May to 109.3 in June, according to the Iowa Department of Revenue, signaling continued growth for the state's economy.

Over the past 12 months, the index has seen impressive increases, rising from 106.4 in July 2013.

The monthly diffusion index increased to 87.5, with seven of the eight components experiencing positive changes for June, up from five in May. The six-month annualized change in the index increased to 3.1 percent from 2.8 percent in May and was positive for the 14th consecutive month.

The six-month diffusion index remained at 75. Employment growth continued in June for the 45th consecutive month with the relatively strong 0.12 percent increase.

The Iowa Leading Indicators Index's recent moves suggest that Iowa employment growth will continue into the fall.

The top three positive contributors in June were the agricultural futures profits index, residential building permits and the Iowa stock market index.

The agricultural futures profits index was a positive contributor for the fourth month in a row. Each June, crop prices included in the index shift from futures prices for grain harvested the prior fall to futures prices for grain in the fields.

The average monthly soybean crop futures prices for the new crop were 5.9 percent lower than last June.

The expected profits continued to weaken for corn with futures prices for new crop corn down 18.4 percent from last year.

The 12-month moving average of residential building permits increased in June to 939, the eighth increase in the past 12 months. That suggests some growth momentum in the Iowa housing market.

A healthy 25 of 33 stocks in the Iowa index experienced positive gains in the month of June, with 10 of the 11 financial-sector company stocks experiencing a positive gain.