Mainstreet Index Rises to Highest Level of 2019

The Creighton University Rural Mainstreet Index (RMI) for November climbed above growth neutral for the fourth time in the past five months.
The overall index rose to 54.2 from 51.4 in October. This is the highest reading for 2019.

The November farm equipment-sales index declined to 37.5 from October’s 39.7.

Borrowing by farmers weakened for November. The borrowing index dipped to 51.4 from October’s strong 68.9 and last November’s 60.1.

Over the past 12 months, the Rural Mainstreet economy added jobs at a 0.9 percent pace, which is below the pace of urban area growth of 1.1 percent for the same period. Rural areas of two Mainstreet states, Missouri and Nebraska, lost jobs over the past 12 months.

The confidence index, which reflects bank CEO expectations for the economy six months out, improved to 44.4 from October’s 36.5.

“The trade war with China and the lack of passage of the USMCA are driving confidence and the economic outlook lower for most areas of the region,” said Ernie Goss, Ph.D., chair of regional economics at Creighton University.

Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road.

Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included.