Rural Mainstreet Economic Index Shows Continued Decline in Growth
The latest economic data from Creighton University’s Rural Mainstreet Index paints a bleak picture for rural communities in the Midwest. High interest rates, coupled with weak farm commodity prices and equipment sales, have pushed the index below growth neutral for the 10th consecutive month.
The index, based on a survey of bank chief executives in 10 states, including Nebraska, provides a real-time analysis of economically dependent rural areas. According to economist Ernie Goss, who created the survey in 2006, rural bankers remain pessimistic about economic growth in their regions over the next six months.
In Nebraska, the overall index dropped to 39.5, with new-hire and farmland price indices also showing declines. Despite a slight increase in the confidence index, Goss attributes the overall economic downturn to weak agriculture commodity prices, farm exports, and farm equipment sales.
Other highlights from the survey include a decline in farm and ranch land prices, sinking farm equipment sales, and falling retail sales. However, there was a surprising expansion in the home sales index, indicating some positive economic activity in the region.
Overall, the data suggests that rural communities are facing significant challenges, with high consumer debt, elevated interest rates, and weaker farm income impacting retail sales. The outlook for the coming months remains uncertain, as rural areas continue to struggle with economic pressures.
