By Andi Anderson
The latest data from Creighton University's Rural Mainstreet Index depicts a nuanced economic landscape for rural areas, with the December index persisting below the growth-neutral threshold for the fourth consecutive month. Although showing a slight uptick to 41.7 from November's 40.4, the index remains below October's 44.4, signaling ongoing economic strain.
Dr. Ernie Goss, a Creighton University Economics Professor, highlighted that higher interest rates continue to impact the rural economy. Despite some resilience in farming, agricultural product exports have notably declined by 14%, impacting businesses on the rural main street.
Agricultural equipment sales continue to lag, recording a sixth instance below growth neutral in the last seven months, resting at 49.5 for December. While the Federal Reserve refrained from raising interest rates, indicating potential future cuts, sentiments among bankers in the region convey a somewhat pessimistic outlook for the national economy.
Surprisingly, home and retail sales saw an increase, rising to 43.3 from November's 32, though the hiring index slightly dropped to 49. The farmland price index exhibited growth, climbing to 67.2 from November's 66.7. Notably, farm loan delinquencies remained relatively low despite anticipated challenges, experiencing only a slight increase.
Iowa's Rural Mainstreet Index surged to 45.5 from November's 32.4, attributed to improved farmland prices. Although agricultural exports in Iowa witnessed a decline from $1.8 billion in 2022 to $1.3 billion in 2023's first ten months, steady commodity prices offer a cushion against the downturn.
While certain sectors display positive movements, the Rural Mainstreet Index underscores persistent economic stress in rural communities, calling for continued attention and support in navigating these challenges.
Photo Credit: gettyimages-skyf.
Categories: Iowa, Rural Lifestyle