Iowa’s leading economic indicators rise in December

Iowa's Leading Indicators Index, a measure of the state's overall economic health, rose in December to 109.4 from 109.3 in November.

The Iowa Department of Revenue on Monday said six of the eight components experienced positive changes, up from four in November.

Employment grew again in December, up 0.9 percent, a fifth consecutive month of positive growth. The recent moves suggest employment growth should continue into the spring although likely at a slow pace.

The top three positive contributors in December were average weekly unemployment claims, new residential building permits, and diesel fuel consumption.

The 12-month moving average of weekly unemployment insurance claims decreased in December by 1.7 percent, with claims for the month down 9.3 percent from last December. Along with the decrease in initial unemployment claims, the Bureau of Labor Statistics said Iowa's unemployment rate decreased to 4.1 percent in December from 4.3 percent in November.

Residential building permits increased 45.1 percent in December from December 2013 but were 21.1 percent below the historical average for December.

Diesel fuel consumption, a measure of semi-truck traffic within and across Iowa, increased to 62 million gallons in December. The 12-month moving average of diesel fuel consumption also registered a record high of 59.08 million gallons.

There were two negative contributors to the overall index. The new orders index, which measures future manufacturing demand, increased to 51.6 in December but was well below the 66.1 recorded in December 2013.

The other negative contributor was the national yield spread, which retracted with the long-term interest rate decreasing 12 basis points and the short-term interest rate increasing 1 basis point from November.