State economy indicators index points up for first time in 5 months

The index used by state officials to forecast tax revenues rose in December 2011 for the first time in five months.

The Iowa Leading Indicators Index was at 104.5 for December, up 0.2 percent from November. The increase was the strongest since April 2011, according to the Iowa Department of Revenue, although the six-month annualized change in the index, at -0.4 percent, remained down for the fourth month.

Recent changes in the index suggest that employment growth will remain weak through winter and into spring, the Iowa Department of Revenue reported.

Positive contributors to the December index include a big jump in the new orders index, from 55.5 to 65.3, and a decline in unemployment insurance claims.

The Iowa stock market index and diesel fuel consumption also increased in December.

Holding the index back were negative contributions from the agricultural sector driven by weak grain prices and high cattle production costs.

Among other indicators, the 12-month moving average for building permits held steady. The interest yield spread narrowed, holding back the index.