The Creighton University Rural Mainstreet Index fell for the fifth straight month, sinking below growth neutral for a third consecutive month according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. That includes Illinois.
The region’s overall reading for August slumped to 44.0 from 46.0 in July.
The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral. This was the fifth consecutive decline in the region’s overall reading.
Supply chain disruptions from transportation bottlenecks and labor shortages continue to constrain growth. Farmers and bankers are bracing for escalating interest rates and falling farm commodity prices.
Bank CEOs were asked their assessment of the Inflation Reduction Act signed by President Biden this week. 52.2%, expect spending and taxes related to the act to INCREASE inflation and add to the federal deficit.