The Iowa Leading Indicators Index increased .2% to 107.7 in August, according to a report released this week by the Iowa Department of Revenue.
The monthly diffusion index rose to 81.3 in August, up from 43.8 in July. The Iowa nonfarm employment coincident index recorded a .01% increase in August.
The nonfarm employment coincident index has decreased in eight of the last 10 months. However, long-term trends in the index suggest nonfarm employment will increase over the next three to six months, according to the report.
Six of the eight component indicators increased more than .05% over the last half-year: the agricultural futures profits index, average manufacturing hours, the Iowa Stock Market index, new orders index, initial unemployment insurance claims and residential building permits. The national yield spread and diesel fuel consumption decreased by more than .05% over the last six months.
Diesel fuel consumption was the strongest positive contributor to the index in August, increasing 7.7% between August 2024 and August 2025. The 12-month moving average increased to 65.82 million gallons in August, up from 65.41 million gallons in July.
The national yield spread and Iowa stock market index went from contributors in July to detractors in August. Residential building permits, the new orders index, diesel fuel consumption and the agricultural futures profits index went from detractors in July to contributors in August.
The Iowa stock market index was the strongest detractor to the index in August. During the month, 12 of the 27 companies gained value, and three of the nine financial-sector companies increased in value. The index decreased to 166.10 in August, down from 170.61 in July.
The index uses 1999 as its base year of 100.
