Midwest Floods Diminish Gains in Rural Mainstreet Index

The Creighton University Rural Mainstreet Index (RMI) for April stood at 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 RMI has now remained at, or above, growth neutral for five consecutive months.

The overall index slipped to 50.0 from 52.9 in March. The index ranges between 0 and 100 with 50.0 representing growth neutral.

The April farm equipment-sales index dipped to 27.4 from March’s 32.8.

The confidence index, which reflects expectations for the economy six months out, improved to 50.0 from March’s 45.7.

Respondents said recent floods hurt their local economies. Of bankers reporting farm flood damage, about half indicated grain farmers incurred the greatest economic damage, while 40 percent indicated the greatest flood damage was sustained by livestock operators. The remaining 10 percent indicated the greatest damage was sustained by farm residences.