Premium ContentClick on Premium Content on the Featured navigation bar for information.
Category Dec. Jan.
Overall 59.7 59.8
Loan volume 50.8 45.5
Checking deposits 68.9 68.2
CDs 37.0 47.8
Ag land prices 84.1 74.3
Ag equip. sales 73.8 72.3
Home sales 46.2 49.2
Hiring 54.6 51.5
Retail 61.6 51.5
6-mo. forecast 61.8 56.1
The bankers are in rural and non-urban areas of Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.
A survey of 194 rural Midwestern bankers this month yielded the highest economic index since June 2007 as the region's non-urban economy continues growing at a healthy pace.
The Rural Mainstreet Index was 59.8, one-tenth of a point higher than in December's survey, said Creighton University economist Ernie Goss. The bankers were somewhat less optimistic about the coming six months than they were a year earlier but still expect the economy in the 10-state region to grow.
Goss said he expects slower growth in the region in the first few months of 2012 because of global economic growth, higher energy costs and softer farm prices.
An index of 50 indicates no change. Higher than 50 indicates growth, and below 50 indicates economic decline. Goss and Greeley, Neb., banker Bill McQuillan originated the survey, taken monthly from bankers in Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.
The bankers' six-month outlook yielded an index of 56.1, down from 61.8 a month ago. The survey indicated strong farmland prices, farm equipment sales and checking account deposits, signs of good farm income from the 2011 harvest.
The index for home sales improved from 46.2 in December to 49.2 in January, but remained below growth-neutral 50. Hiring remained on the positive side, with an index of 51.5, compared with 54.6 in December.
Bankers in the survey said they expect farm supply costs to rise by 7.2 percent in 2012 and believe the end of a federal ethanol subsidy will lower grain prices.
Goss said the monthly farmland index has indicated growth in prices for two straight years. Strong farm income is pushing up prices at a rate that is "unsustainable in the long run," he said.
Nebraska's index dropped to 58.8 from 60.5 in December. Its farmland price index was 73.5, down from a record 84.6 in December but still a high rating, Goss said. The rural hiring index was 53.4, down from 57.8 in December.
Iowa's index increased to 57.3 from 56.3 in December. Its farmland price index was 68.2, down from 77.1 in December, while its hiring index increased to 51.4 from 50.7 in December.
Contact the writer:
402-444-1080, steve.jordon@owh.com
twitter.com/buffettOWH
Copyright ©2012 Omaha World-Herald®. All rights reserved. This material may not be published, broadcast, rewritten, displayed or redistributed for any purpose without permission from the Omaha World-Herald.
