Mainstreet Index Highest Since June

The Rural Mainstreet Index in December rose to its highest level in six months, although it remains weak.

The index, which ranges between 0 and 100, rose to 42.9 from November’s 36.6. This is the 16th month the index has registered below the growth-neutral mark of 50.

The December farm equipment-sales index increased to 16.3 from November’s 15.4, the December number in 2015 was 8.8.

Economist Ernie Goss, who leads the survey at Creighton University, said low commodity prices and weak farm income continue to push growth into negative territory for seven of the 10 states that participate in the study.

States trending higher are Iowa, Nebraska, and South Dakota, Goss said. States trending lower are Colorado, Kansas, Illinois, Minnesota, Missouri, North Dakota and Wyoming.

The confidence index, which reflects expectations for the economy in the coming six months, rose to 43.9 in December from 39 in November.

The survey also revealed that bankers expect loan defaults to expand by 5.6 percent over the next 12 months.

Each month, Creighton University asks questions about economic conditions to community bank presidents and CEOs in rural economies dependent upon energy and agriculture. The survey covers 10 states.