Rural Mainstreet Economy Down Again for July
Bankers Expect Farmland Prices to Drop Over Next 12 Months
Survey: Rural Mainstreet Index Sank for 12th Consecutive Month
OMAHA, Neb. (July 17, 2023) – For the 12th consecutive month, a Creighton University-led survey of regional bankers found economic conditions in rural areas of nine Midwestern states declined in July.
The overall Rural Mainstreet Index (RMI) fell to a growth neutral reading of 50.0 in July, down from a slightly positive 50.8 in June. The index is a composite of survey results measuring current economic conditions on a scale of 0 to 100, with 50 representing growth neutral. Any score above 50 indicates growth, and any score below 50 indicates decline.
The survey results suggest that the rural economy is continuing to struggle with high interest rates, weak farm commodity prices, and declining equipment sales. Bankers also reported that farmland values are expected to decline over the next 12 months.
- The RMI for current economic conditions declined from 52.5 in June to 49.5 in July.
- The index for future economic conditions also declined, from 53.8 in June to 51.5 in July.
- Bankers' expectations for farmland values over the next 12 months declined from a neutral reading of 50.4 in June to a negative 46.2 in July.
The RMI is a monthly survey of bankers in rural areas of Iowa, Illinois, Missouri, Minnesota, Nebraska, Kansas, Oklahoma, South Dakota and North Dakota. The survey is conducted by the Creighton University Economic Forecasting Group in partnership with the Federal Reserve Bank of Kansas City.
For more information, visit the Creighton University Economic Forecasting Group website: www.creighton.edu/business/economic-forecasting-group.
Comments