Rural Mainstreet Index: ‘Negatives Less Negative’

The Creighton University Rural Mainstreet Index improved from November’s reading but remained below growth neutral, according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.   

The index ranges between 0 and 100 with 50 representing growth neutral. It expanded to 47.8 in December from 44.7 in November. The overall index is up approximately 11.4 percent from a year ago.  

“While the overall Rural Mainstreet Index (RMI) for December remained below growth neutral, this is the highest December reading that we have recorded since 2014,” said Ernie Goss, chair of regional economics at Creighton University’s business school. “Clearly, based on our recent surveys, the negatives are getting less negative.”

The December farm equipment-sales index improved to 29.3 from November’s 26.2.

The confidence index, which reflects expectations for the economy six months out, increased to 51.2 from 40.6, indicating an improvement in the economic outlook among bankers.

About one-fifth of bank CEOs reported that their local economy was expanding. While this indicator remains bearish, it is well up from the 8.7 percent reporting an expanding local economy in February 2016.