For a second straight month, the overall rural mainstreet index, or RMI sank below growth neutral, according to the October survey of bank CEO’s in rural areas. Overall, the region’s reading for September fell to 44.4 from September’s 49.5. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral. Creighton University Economist, Ernie Goss, says it’s the weakest recorded reading for 2023 and points to weaker farm and non-farm economies. However, less than 25%t of banks reported tightening credit standards for farmers while over a third indicated that their bank had tightened credits standards for businesses in their area.
The Kansas RMI for October fell to 45.0 from September’s 48.7. According to the Bureau of Labor Statistics, the state’s rural mainstreet economy has expanded employment by 1.1% over the past 12 months, compared to a higher 1.2% for urban areas of the state for the same period-of-time.
