Mainstreet Index/Sales Numbers Tell Familiar Story

The Creighton University Rural Mainstreet Index sank for September and remained below growth neutral for the 13th consecutive month, according to the monthly survey of bank CEOs in rural communities.

The overall index, which ranges between zero and 100, fell to 37.3 in September. It was 41.1 in August. In September 2015, the index was 49.0. Fifty on the index is considered growth neutral.

The index for farm equipment sales dipped to 14.3 in September compared to 14.8 in August.

The confidence index, an assessment of bankers’ six-month outlook, also fell. It was 27.2 in August and is 21.5 this month.

The September survey also found:

Almost four out of five, or 79.1 percent, of bank CEOs reported a significant upturn in loan restructuring due to weak farm income.

Almost one-fifth of bankers reported increasing rejection rates on agricultural loans due to weak farm income.

The employment rate declined by 0.9 of a percent in the past 12 months in the survey region.

The Rural Mainstreet Index is the result of survey responses from bank CEOs inabout 200 rural communities with an average population of 1,300 based in Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.