Survey: CEO economic sentiments improved this month

Bank CEOs have a positive view of current economic conditions, even as many remain pessimistic over short-term economic projections, according to a Creighton University survey of bank CEOs in rural areas of a 10-state region. .The Rural Mainstreet Index increased to 51.9 from 44.0 in May, according to the report. Any reading above 50 indicates positive economic sentiments. “This is only the third time in two years that the overall index has moved above growth neutral,” said Ernie Goss, chair in regional economics at Creighton University. “Despite the significant increase for the month, on average, bankers expect approximately one in four farmers to experience negative income for farmers in their area.”Rural bankers continued to lack confidence that the economy will grow over the next six months, increasing to 37.0 from 30.0 in May. “Weak grain prices and negative farm cash flows, combined with tariff retaliation concerns, pushed banker confidence lower,” Goss said. The farmland prices index fell below 50 for the 13th time in the past 14 months, increasing to 40.9 from 39.6 in May. “Elevated interest rates, higher input costs and volatility from tariffs have put downward pressure on farmland prices,” Goss said.According to the International Trade Association, regional exports of agriculture goods and livestock fell 18.5 percent for the first four months of this year to $3.7 billion from $4.5 billion in 2024. June’s loan volume index fell to 73.1 from 75.0 the previous month. The checking deposit index dropped to 40.4 from 45.8 in May. The index tracking certificates of deposits and other savings instruments fell to 50.2 from 60.4 in May.Other report findings included:The index tracking farm equipment sales fell to 22.7 from 23.9 in May, its 22nd straight month of falling below growth-neutral. The drop came amid high input prices, a tighter borrowing environment, low farm commodity prices and tariff-fueled market volatility, according to the report. The new hiring index for June was stagnant but remained above growth-neutral at 52.0 as non-farm employers have added jobs. The index tracking home sales increased to 51.9 from 47.9 in May. Regional retail sales remained relatively poor, increasing to 44.2 from 41.7 in May.