Farm Equipment Sales Lag

Bank CEOs in rural communities saw signs of economic recovery in May, but sales of farm equipment was not among them. The monthly Rural Mainstreet Index released by Creighton University showed an increase in home sales and hiring but continued declines in equipment sales.

Ernie Goss, Creighton’s economist, reported that the farm equipment sales index was 12.5, which repeats a record low from May. This is the 23rd consecutive month that the reading has been below 50.

The Rural Mainstreet Index is a 1-to-100 scale; numbers above 50 show expansion and numbers below 50 show contraction. The findings are based on feedback from bank CEOs in Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.

Among encouraging signs in the survey, the home sales index rose from 66 in May to 68.1 in June. The hiring index was 61.5, which is a repeat from May but confirms that rural communities are growing their job markets by a modest 1% a year. Overall, the Rural Mainstreet Index for June rose slightly from May’s weak 49 to a growth-neutral 50. S