A report on the state of the Iowa economy in August is the second of the day to detect overall sluggishness.

With the exception of positive news on agriculture and building permits, the Iowa Leading Indicators index recorded an overall negative change of 0.3 percent in August after a 0.1 percent increase in July and two months of negative changes in June and May, according to a news release from the Iowa Department of Revenue.

Click here to read a Business Record story from this morning about a report on the Midwest economy from Creighton University.

The six-month annualized change in the index dropped to near zero, suggesting that Iowa employment growth may stall this winter, the state department of revenue said.

Building permits jumped in August, recording the strongest gain since March 2010.  The growth was driven by an increase in permits for structures with five or more units, suggesting the strength lies in the market for rental housing more than in the market for single-family homes.

Despite the strong monthly gain, permits remained 20 percent below the historical average, where this indicator for the Iowa housing sector has been stuck for nearly four years.

The agricultural sector continued to show strength, led by additional price gains for corn and soybeans. Although livestock prices also rose, higher grain prices, which led to higher feed prices, squeezed expected profits.

Unemployment insurance claims fell in August from July, but remained above the historical average, extending a nearly three-year stretch of an above-average number of individuals losing jobs in Iowa.  

Click here to read the full report.