Survey Finds Many Rural Bankers Talking Recession
Date posted - February 24, 2016
Northwest Iowa — A survey finds about a third of rural bankers here, and in nine other Midwestern states are starting to talk recession after seeing economic indicators slide for the sixth straight month.
Creighton University economist Ernie Goss conducts the Rural Mainstreet Index and says the February poll shows rural bank CEO’s are not optimistic about the immediate future.
Goss says there is a slowdown in manufacturing and there has been a cut in sales abroad. He fears the Federal Reserve Board will likely raise interest rates next month.
While motorists in Iowa are enjoying some of the lowest gasoline prices in years, the collapse of prices has the nation’s oil industry reeling and that’s carrying over to many other sectors of the economy. Goss predicts few changes coming in that arena.
Goss says that puts downward pressures on investors, but some sectors benefit from the oil prices, including agriculture.