Survey: Rural economy growing

A survey of bankers indicated that the rural Midwest's economy is growing for the first time since January 2008.

The Rural Mainstreet Index registered 54.3 on a scale of zero to 100, above the growth-neutral level of 50 after 27 straight months below 50, which indicated economic decline. The index was 44.2 in April.

Ernie Goss, the Creighton University economist who originated the survey with Greeley, Neb., banker Bill McQuillan, said hiring, bank lending, home sales and retail sales showed growth or improvement in the 10 states where bankers in non-urban communities responded to the survey.

"The increase in hiring was one of the most encouraging elements of the May survey of bankers," Goss said. He said farm and ranch land prices and farm equipment sales werre strong, and he expects those factors to remain healthy.

The bankers' outlook for the economy six months from now resulted in an index of 63, up from 60.2 in April.

Nebraska's index was 55.7, up from 44.6 in April. Iowa's index was 54.8, up from 43 in April.

Other states in the survey were Colorado, Illinois, Kansas, Minnesota, Missouri, North Dakota, South Dakota and Wyoming.

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