The regional economy grew this month but remains relatively slow, according to Creighton University’s monthly survey of bank CEOs.
The Rural Mainstreet Index increased to 45.8 in April from 38 the previous month, remaining below the growth-neutral score of 50 for the eighth straight month. “Higher interest rates, weaker agriculture commodity prices and higher grain storage costs pushed the overall reading below growth neutral,” said Ernie Goss, chair in regional economics at Creighton University’s Heider College of Business.
Rural banker economic optimism remains limited. April’s confidence index increased to 37.5 from 36 last month. “Weaker and falling agricultural commodity prices, farm exports and higher interest rates over the past several months continued to constrain banker confidence,” Goss said.
Farmland prices increased for the 53rd straight month, even as the index for farm equipment sales fell below 50 for the 10th time in the past 11 months amid weaker grain prices, tighter credit conditions and increased borrowing costs. The farm equipment sales index increased to 47.7 from 30.4 in March. “Creighton’s survey continues to point to solid, but slowing, growth in farmland prices for 2024,” Goss said.
Roughly half of bank CEOs cited ethanol production as crucial to their local economy. Regional exports of agriculture goods and livestock are down 7.2 percent in 2024 from the same period last year, according to the International Trade Association.
This month’s loan volume index increased to 85.4 from 79.2 in March. The checking deposit index fell to 52.2 from 62.5 in March. The index for certificates of deposits and other savings instruments remained strong but decreased to 71.7 from 72.9 in March.
Other report findings included:
- The index for new hiring increased to 56.8 from 52.2 in March. Regional employment increased 2.6 percent over the past 12 months, according to the U.S. Bureau of Labor Statistics.
- The home sales index fell to 34.8 from 41.7 in March amid stubbornly high mortgage rates and a limited supply of homes. The retail sales index increased to 41.3 from 39.6 in March as weaker farm income, elevated interest rates and high consumer debt limited growth.
The Rural Mainstreet Index is based on the sentiments of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.