Equipment Sales Index Continues Climb

The January farm equipment-sales index climbed to 41 from December’s 37

The Creighton University Rural Mainstreet Index for January fell but remained above growth neutral, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

The overall index sank to 51.5 from December’s 54.2. This was the 11th time in the past 12 months the index has remained above growth neutral. The index ranges between 0 and 100 with 50 representing growth neutral.

“Our surveys over the last several months indicate the Rural Mainstreet economy is expanding outside of agriculture. However, the negative impacts of tariffs and low agriculture commodity prices continue to weaken the farm sector,” said Ernie Goss, Ph.D., from Creighton University’s business school.

The January farm equipment-sales index climbed to 40.9 from December’s 37.1. This marks the 65th consecutive month the index has remained below growth neutral.

The confidence index, which reflects bank CEO expectations for the economy six months out, climbed to a still anemic 45.7 from December’s 44.3, indicating a pessimistic economic outlook among bankers.

“Tariffs, trade tensions, weak agriculture commodity prices and the partial federal government shutdown negatively influenced the economic outlook of bank CEOs,” Goss said.

Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included.