Rural Economy Index Lower Again

The Creighton University Rural Mainstreet Index remained weak with a reading below growth neutral for the 20th straight month.  The monthly survey comes from bank CEOs in rural areas dependent on agriculture and energy.

The index which ranges between 0 and 100, slipped to 44.6 from 45.3 in March.  The last time the overall index was at or above growth neutral was August 2015.   The farmland and ranchland-price index for April slumped as well, to a frail 30.7 from March’s 33.0.

This is the 41st straight month the index has languished below growth neutral. Meanwhile, the April farm equipment-sales index sank to a very weak 21.5 from 22.0 in February, the 44th consecutive month the reading has fallen below growth neutral. Borrowing by farmers soared for April as the loan-volume index advanced to a record 81.6 from last month’s 58.4. And, the confidence index, which reflects expectations for the economy six months out, slipped to 45.6 from 47.5 in March indicating a continued pessimistic outlook among bankers.

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