Economy slows in rural areas

In a monthly survey, rural Midwestern bankers noted a slight slowdown in their communities’ economies after two months of economic gain.

The Rural Mainstreet Index for July was 49.3, down from 52.6 in June and 54.3 in May. The survey, originated by Creighton University economist Ernie Goss and Greeley, Neb., banker Bill McQuillan, shows growth if the index is above 50 and decline if it’s below 50.

A year ago the index was 34, so July’s number is a big improvement for the 10 states surveyed, Goss said.

"Much like other economic indicators from across the nation, our survey is signaling slowing in economic progress."

Nebraska’s index was 53.2, down slightly from 55.3 in June. Jobs gained at a rate of 1 percent over the past year, those surveyed said.

Iowa’s index was 52.5, down from 54.2 in June, with a job-gain rate of 0.4 percent.

The survey of 167 bankers also included Colorado, Illinois, Kansas, Minnesota, Missouri, North Dakota, South Dakota and Wyoming.

Goss said the farm economy has improved, resulting in a farmland price index of 52.5, down slightly from 54.7 in June. It was the sixth straight month in the growth range.

Bank indicators -- loans, deposits and savings -- showed growth for the fifth straight month, but the hiring index fell to 45.4 after two months above 50. The retail sales index was 41.7, well below June’s 52.6, and the home sales index slipped to 41.7 from 56.3 in June and 58.8 in May.

The surveyed bankers’ view of the economy six months from now resulted in an index of 52.4, indicating growth but not as strongly as June’s index of 56.1.

Steven Lane, CEO of Security Savings Bank in Farnhamville, Iowa, said, "People seem to have very little confidence in the economy getting better."

« Money

Share