Rural Mainstreet Index Improves from July

After a painful report for July, the Creighton University Rural Mainstreet Index improved in August. The index, which ranges between 0 and 100, increased to 42.2 from 40.7 in July. The index considers 50 growth neutral.

The monthly index is based on survey data from bank CEOs in rural areas of a 10-state region with ag economies.

The August farm equipment-sales index increased to 25.6 from 20 in July.

“Approximately 57.6 percent of bankers reported drought conditions were having a negative impact on agriculture production in their area,” said Ernie Goss, the chair in regional economics at Creighton University.  

The survey also revealed significant variability regarding the impact of weather conditions. A bank president in northwest Minnesota described both the quality and quantity of grain as good.

Borrowing by farmers was strong for August with a loan-volume index of 77.8.

The confidence index—expectations for the economy in six months—fell to 35.6 from 38.4 in July. Goss attributes the decline in confidence to worries about trade and drought.