Rural Mainstreet Expands in June

The Creighton University Rural Mainstreet Index climbed above growth neutral in June for a fifth straight month, according to the monthly survey of bank CEOs in rural areas. This is the first time since July 2015 the survey has recorded five straight months of overall indices above growth neutral.    

The overall index slid slightly to 56.1 from 56.3 in May. The index ranges between 0 and 100 with 50.0 representing growth neutral.

The June farm equipment-sales index fell to 36.3 from May’s 43.8.

The confidence index, which reflects expectations for the economy six months out, fell to 48.8 from May’s 50.0, indicating declining economic optimism.

“Just as last month, an unresolved North American Free Trade Agreement (NAFTA) and rising trade tensions with China continue to be a concern,” said Ernie Goss, the chair in regional economics at Creighton University.

“Surveys over the past several months indicate the Rural Mainstreet economy is trending upward with improving and positive economic growth,” Goss said. “However, the negative impacts of recent trade skirmishes have yet to show up in our survey results. While agriculture commodity prices have improved recently, prices remain below breakeven for a large share of grain farmers.”