Rural Mainstreet Shows Growth, Ag Less Prosperous

The Creighton University Rural Mainstreet Index climbed above growth neutral in October for a ninth straight month, according to the monthly survey of bank CEOs in rural areas of a region dependent on agriculture and/or energy.

The overall index expanded to 54.3 from 51.5 in September. The index ranges between zero and 100. Fifty represents growth neutral.

“Our surveys over the last several months indicate that the Rural Mainstreet economy is expanding outside of agriculture. However, the negative impacts of tariffs and low agriculture commodity prices continue to weaken the farm sector,” said Ernie Goss, chair in regional economics at Creighton University’s Heider College of Business. 

The October farm equipment-sales index fell to 33.3 from September's 35.9. While the index is weak, it is an improvement over the October 2017 reading of 29.3. The confidence index, which reflects expectations for the economy six months out, dipped to 42.6 from September’s 49.5.

“Just as last month, tariffs, trade tensions, and weak agriculture commodity prices diminished the economic outlook of bank CEOs,” Goss said.