The possibility of a recession is on the mind of bank CEOs as the Creighton University Rural Mainstreet Index dropped below growth neutral for the first time in close to two years.
The overall reading for the June RMI slumped to 49.8, down nearly eight points from May to the lowest level since the September 2020 survey.
Asked about their expectations for a recession in the U.S. over the next 12 months, nearly 93 percent of responding bankers rated the chances at greater than 50 percent.
Jon Schmaderer, CEO of Tri-County Bank in Stuart, Neb., reported that “fuel prices are starting to have a severe negative impact on rural Nebraska.”
Combined with rocketing agriculture input prices, the business confidence index dropped to 33.9, marking the lowest back-to-back readings since the beginning of the pandemic in April and May 2020.
Nebraska’s RMI remained above growth neutral at 54.1 despite dropping more than five points from the previous month’s reading.
