By NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — A survey of the small-town economies in the Midwest shows the shock COVID-19 has brought to the system.
"Our survey of bank CEOs in rural areas of ten states heavily dependent on agriculture and energy moved to its lowest level ever," said economist Ernie Goss with Creighton University. "It took a big, big hit. Much like the national economy, the Rural Mainstreet economy is struggling right now. I'd call it at least a short-term collapse, hopefully not long term."
The overall index for April slumped to 12.1 from 35.5 in March. April’s decline represents the largest one month fall since the survey was initiated in January 2006.
We have an unemployment rate that's above 20% for the nation," Goss said. "This is the sharpest economic downturn this nation and for that matter, the region, has experienced in the last couple of hundred years. Our report was just reflective of that."
Normally, economists are slow to declare recession, that isn't so right now.
Nine out of ten, I'm surprised it wasn't ten out of ten bankers expect their area to be in a recession for at least the next couple of quarters," Goss said. "It was not good news."
The biggest help that could come to these economies would be more money injected via the Paycheck Protection Program, but there is political bickering over how best to accomplish that.