Sunday, August 22, 2010

Goss Survey Results Indicate Downturn in Rural Midwest Economy

Creighton University photo by TEDizen

Three days ago, Ernie Goss, a widely followed economist at Creighton University, released the results of his latest Midwest survey which showed a deterioration of economic conditions in the rural Midwest and mountain states.

The survey includes ten states: Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.

The regional banker's confidence index has fallen for three straight months and is now forecasting contraction. The farmland price index and farm equipment sales rose, however. The most negative aspect of the report was a steep drop in home sales. Bankers reported that currently, individuals and businesses are trying to reduce their debt levels and are more willing to walk-away from their debt. Job losses in this rural region have totaled 3.5 percent over this past year.

Goss expects farm income to grow over the next year contingent upon a stable dollar that doesn't strengthen significantly from here.

Forty-three percent of the bankers surveyed expected a return to recessionary conditions in 2011.

Source: [Iowa Politics]