Mainstreet Index Rises

The Creighton University Rural Mainstreet Index climbed above growth neutral in August for a seventh straight month, 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 climbed to 54.8 from 53.8 in July. The index ranges between 0 and 100 with 50 representing growth neutral.

The August farm equipment-sales index fell to 37.8 from July’s 38.8. This marks the 60th consecutive month the reading has moved below growth neutral. In terms of the sale of farm equipment over the next 12 months, bankers expect sales to decline by 7.8 percent.

In reaction to weak farm commodity prices and income, almost one-third, or 31.0 percent, of bank CEOs reported rejecting a higher percentage of farm loans. More than half, or 54.8 percent, indicated raising collateral requirements, while 4.8 percent reported reducing the size of farm loans.

The confidence index, which reflects expectations for the economy six months out, rose to 46.5 from July’s 42.7.