The April Rural Mainstreet Index moved higher during the month. The index rose above growth neutral after dropping below the mark in March. The index scale is from 0 to 100, with 50 being growth neutral. Dr. Ernie Goss of Creighton University said the index rose to 50.1 from March?s 45.6.
?We’re surveying bank CEOs in rural areas of 10 states, and the overall reading was above growth neutral, slightly above,? Goss said. ?But when we drill down, there are some issues in terms of banking and finance. Of course, that’s not surprising given what’s going on with high-visibility bank failures.?
The survey showed 76 percent of ag bank CEOs were not in favor of recent national bank bailouts. However, Goss said it?s not just ag bankers that are concerned about the economy.
?That?s right we had approximately 64 percent of the bankers reported that depositors were exiting due to higher financial risks,? Goss said.
While the index level isn?t great, Goss had a good idea as to why it went up in April.
?We just got to rock bottom,? Goss said. ?All the sentiment about recessions, and we economists keep saying recession, recession, recession, and it just has not appeared. We continue to add jobs at a pretty good pace, there?s record-low unemployment, so the bad is getting a little bit better.?
For more information, visit https://www.creighton.edu/economicoutlook/mainstreeteconomy.
