July Survey Results at a Glance:
- The overall index experienced it’s largest one-month decline since November 200.8
- On average, bankers expect 15.1 percent of grain farmers to suffer negative cash flows for 2017.
- Loan volumes rise to second highest reading in survey history.
- On average, bankers estimated loan defaults of 4.9 percent over next 12 months, down from the 5.4 percent predicted last year at this time.
- Approximately 55.9 percent of bank CEOs say the Federal Reserve should raise interest rates at least one more time in 2017.
OMAHA, Neb. (July 20, 2017) – After rising to growth neutral for two straight months, the Creighton University Rural Mainstreet Index fell below the 50.0 threshold for July according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The index, which ranges between 0 and 100, tumbled to 40.7, its lowest level since November of last year, and down from 50.0 in June.
“This is the largest one-month decline we have recorded since November 2008, or in the middle of the national recession, “said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. “Drought conditions in portions of the region, combined with weak grain prices, negatively affected economic conditions, and the economic outlook for a large share of bank CEOs this month.”
Scott Tewksbury, president of Heartland State Bank in Edgeley, North Dakota, reported, “As of July 15, this is the third driest year since 1901. Crop conditions are poor and economic activity is weaker than it would be otherwise.”
But in neighboring Minnesota, Pete Haddeland, CEO of the First National Bank in Mahnomen, said, “Our crops look good here. The wheat is great.”
Overall: The index, which ranges between 0 and 100, tumbled to 40.7, its lowest level since November of last year, and down from 50.0 in June.
“This is the largest one-month decline we have recorded since November 2008, or in the middle of the national recession, “said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. “Drought conditions in portions of the region, combined with weak grain prices, negatively affected economic conditions, and the economic outlook for a large share of bank CEOs this month.”
Scott Tewksbury, president of Heartland State Bank in Edgeley, North Dakota, reported, “As of July 15, this is the third driest year since 1901. Crop conditions are poor and economic activity is weaker than it would be otherwise.”
But in neighboring Minnesota, Pete Haddeland, CEO of the First National Bank in Mahnomen, said, “Our crops look good here. The wheat is great.”
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