Farm Economy: Rural Mainstreet Index Sinks For September: 8 Of X Depository Fiscal Establishment Ceos Study Negative Tariff Impacts

Along with a pair Federal Reserve Districts (Kansas City, Minneapolis, sometimes Chicago) the Rural Mainstreet Index is ane of the go-to sources for keeping tabs on the farm economy.

From Creighton University's Heider College of Business:

September Survey Results at a Glance:

* For an 8th forthwith month, the overall index rose to a higher house growth neutral.
* More than 8 of 10 bankers reported negative impacts on the local economic scheme from tariffs.
* But solely four of 10 bankers supported cutting of late enacted tariffs on imported goods.
* Farmland values continued to decline.
* More than one-fifth of banking concern CEOs back upwards raising Federal Reserve involvement rates ii or to a greater extent than times inwards 2018.

OMAHA, Neb. (Sept. 20, 2018) – The Creighton University Rural Mainstreet Index climbed to a higher house growth neutral inwards September for an 8th forthwith month, according to the monthly survey of banking concern CEOs inwards rural areas of a 10-state portion theme on agriculture and/or energy.   

Overall: The overall index declined to 51.5 from 54.8 inwards August. The index ranges betwixt 0 in addition to 100 with 50.0 representing growth neutral.

“Our surveys over the terminal several months dot that the Rural Mainstreet economic scheme is expanding exterior of agriculture. However, the negative impacts of recent merchandise skirmishes convey begun to surface, weakening already anemic grain prices,” said Ernie Goss, PhD, Jack A. MacAllister Chair inwards Regional Economics at Creighton University’s Heider College of Business.

Farming in addition to ranching: The farmland in addition to ranchland-price index for September sank to 37.5 from 44.7 inwards August. This is the 58th forthwith calendar month the index has fallen below growth neutral 50.0.

The September farm equipment-sales index brutal to 35.9 from August’s 37.8. This marks the 61st consecutive calendar month that the reading has moved below growth neutral 50.0.

Banking: Borrowing yesteryear farmers expanded for September, simply at a slower measuring than inwards August, equally the loan-volume index declined to 65.3 from 72.2 inwards August. The checking-deposit index increased to 39.4 from August’s 36.0, spell the index for certificates of deposit in addition to other savings instruments brutal to 45.5 from 48.8 inwards August.  

Hiring: The exercise approximate dipped to a potent 65.3 from August’s 68.7. The Rural Mainstreet economic scheme is at nowadays experiencing positive labor growth. Over the yesteryear 12 months, the Rural Mainstreet economic scheme added jobs at a 2.3 per centum measuring compared to a lower 1.7 per centum for urban areas of the same 10 states.     

Confidence: The confidence index, which reflects expectations for the economic scheme half dozen months out, rose to a weak 49.5 from August’s 46.5, indicating a pessimistic economical outlook alongside bankers.

“Just equally terminal month, tariffs in addition to merchandise tensions weakened the economical outlook of banking concern CEOs,” said Goss.

Bankers were asked their position on of late implemented in addition to proposed tariffs on imported goods. More than 8 of 10 bankers, or 81.9 percent, reported negative impacts on the local economic scheme from tariffs. Despite this, fewer than half, or 42.4 percent, back upwards cutting or eliminating those tariffs. Approximately 45.5 per centum back upwards continuing electrical current tariffs in addition to merchandise policy, spell 12.1 per centum endorse pursuing a to a greater extent than hawkish approach yesteryear raising tariffs....MUCH MORE