OMAHA — A monthly survey of rural bankers suggests the economy in 11 Midwest and plains states is still in bad shape, with real estate, retail sales and hiring still below levels needed for growth.
The Rural Mainstreet Index dipped to 32.0 in August from 32.6 in July and 34.0 in June. It is, however, significantly higher than the index’s record low of 16.9 in February.
The index ranges from 0 to 100. A score below 50 suggests the economy will contract in the next three to six months, while a score above 50 indicates the economy will expand.
Creighton University economist Ernie Goss, who oversees the survey, said more than three in five bankers surveyed this month expect higher crop yields for 2009. But they also expect depressed crop prices will lead to a drop in farm income.
