Rural Economies Expand, Farm Equipment Sales Lag

The Creighton University Rural Mainstreet Index climbed above growth neutral in September for an eighth straight month, but the index specific to farm equipment sales dipped.

“Our surveys over the last several months indicate that the Rural Mainstreet economy is expanding outside of agriculture,” said Ernie Goss, chair in regional economics at at Creighton University. “However, the negative impacts of recent trade skirmishes have begun to surface, weakening already anemic grain prices.”

Creighton administers the survey of bank executives, which assesses the economy in communities dependent upon agriculture/energy in rural areas of a 10-state region. The index ranges between 0 and 100 with 50 representing growth neutral. The overall index declined to 51.5 in September from 54.8 in August.

While the September farm equipment-sales index fell to 35.9 from 37.8 the previous month, it should be noted the equipment sales index was at 27.4 in September of 2017. 

The confidence index, which reflects expectations for the economy six months out, rose to 49.5 from August’s 46.5, which shows subtle improvement but remains lackluster.

“Just as last month, tariffs and trade tensions weakened the economic outlook of bank CEOs,” Goss said.