Rural economies are improving, but a labor shortage is restraining growth, according to an October survey of bank leaders in a nine-state region that includes South Dakota.
...
Retail sales remained weak in October, as large retailers in trade centers pulled customers from a wide area, the report said.
The bankers' outlook for the next six months jumped to 61.8, its highest since May, from 43.6 in September and 37.5 in August.
That confidence is sparked by the Federal Reserve not raising interest rates, lower oil prices and improvements in agricultural commodity prices, Goss said.
"Higher grain prices have been good for farmers, who had a good harvest," said Joe Kennedy, CEO of First National Bank in Frankfort, Kan.
The index for loan volume in the rural areas dropped significantly, to 58.8 from September's 76.9.
The home sales index in the nine states rose slightly from 35.5 in September to 36.4, the survey found.
Bankers in all states except Kansas reported October job gains, but nearly 79 percent of bankers said a lack of labor is having a negative impact on rural business growth.
« A Canticle For Liebowitz | Main | Blogging in Bloomington 2 »
Recent Comments