Iowa’s leading economic index edged higher in April, though persistent weakness in nonfarm employment continues to cloud the outlook heading into summer.
The Iowa Leading Indicators Index rose 0.2 percent to 108.3 in April, up from 108.1 in March, according to a report from the Iowa Department of Revenue. The monthly diffusion index climbed to 87.5 from 68.8 in March, a sign that a broader share of component indicators are trending in a positive direction.
Despite the headline gain, Iowa’s nonfarm employment coincident index posted a 0.07 percent decrease in April — its 19th decline in the last 20 months.
Seven of the index’s eight component indicators increased more than 0.05 percent over the past six months: the agricultural futures profits index, the national yield spread, the Iowa Stock Market index, the new orders index, average weekly manufacturing hours, diesel fuel consumption and initial unemployment insurance claims. Residential building permits was the lone component that did not contribute to the six-month diffusion index, having decreased by more than 0.05 percent over that period.
Residential building construction was the strongest contributor to the index in April. Permits totaled 1,493 for the month, up 27.1 percent from 1,175 in April 2025 and 23.3 percent above the monthly historical average dating to 1998. The 12-month moving average for residential permits climbed to 1,074 in April from 1,047 in March.
Diesel fuel consumption was the only detractor from the index in April, falling 2.1 percent compared to the same month a year earlier. The 12-month moving average for diesel consumption slipped to 65.96 million gallons from 66.09 million in March.
The ILII is designed to signal economic turning points. Two conditions together are considered an indicator of a coming contraction: a six-month annualized change in the index below -2.0 percent and a six-month diffusion index below 50.0. Neither threshold was met in April.
The full report is available on the Iowa Department of Revenue’s website.
