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According to the September survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, the overall Rural Mainstreet Index (RMI) sank below growth neutral for the fourth time in the past six months.   

Readings range between 0 and 100 with 50.0 representing growth neutral.

Overall: The region’s overall reading for September fell to 44.7 from 50.3 in August.

Farm equipment sales: The September farm equipment sales index increased to a very weak 25.0 from August’s 22.2.

Farming and ranchland prices: For the fourth time in the past five months, the farm and ranchland price index climbed above growth neutral, increasing to 50.1 from 47.2 in August. “Farm and ranchland values have been holding up much better than farm and ranching income,” said Goss.

Hiring: The new hiring index for September sank to 49.5 from August’s 50.1. The rural job market for farms, ranches and non-farm rural employers has remained weak for the last several months.

“In September, 5.3% of bankers reported an upturn in hiring by Rural Mainstreet businesses. This was unchanged from the August report,” said Goss.

Confidence: Rural bankers remain pessimistic about economic growth for their area over the next six months. The September economic confidence index tumbled to a weak 26.3 from 31.6 in August. 

“Despite improving grain prices, rising trade tensions and higher input costs continued to weigh on banker confidence,” said Goss.

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