The economy in the rural parts of ten Western states is likely to slow down, according to a new survey. The Denver Post reports that weak crop and energy prices are hurting profits across the region. This could lead to a rural economy slump. The survey queried bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.
Economists are keeping an eye on the number provided by the Rural Mainstreet Index. In August, the index sat at 50, but in September it fell to 49. A score below 50 suggests trouble ahead for rural economies.
Due to the uncertain economic climate, many farmers are delaying making big purchases. This reluctance itself can contribute to the sluggish economy.
