Hint of Optimism on Mainstreet

Creighton University released its Rural Mainstreet Index for July last week, and the survey revealed a subtle uptick in growth for the fourth consecutive month.

The report, based on surveys of bank CEOs in a 10-state region, said the index climbed to 53.4, up from June’s growth-neutral 50, and its highest level since June 2014. The index is based on a zero to 100 scale, with 50 being growth neutral.

News specific to farm equipment sales was weaker. The July index rose to 17.9 from June’s record low of 12.5. The index for farm equipment sales has been below growth neutral for 24 straight months, said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

“With farm income expected to decline for a second straight year, farmers remain very cautious regarding the purchase of agricultural equipment,” Goss said.

The survey also measures confidence, which reflects expectations for the economy for the next six months. The index expanded to a weak 46.6 from June’s 45.9. Goss said recent improvements in agricultural commodity prices “pushed bankers’ economic outlook to a weak, but higher level.” S