By NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — The July Rural Mainstreet Index from Creighton University was released and July’s reading represented the fourth straight month with a reading indicating recessionary economic conditions.
"This, of course, is a survey of bank CEOs in rural areas of ten states, including Kansas," said economist Ernie Goss. "I'd say we're crawling out of the economic downturn. We're still well below pre-COVID-19 levels. For example, in the overall region, we're down about 8 to 8 and a half percent in terms of jobs. Kansas number is about around 6% below COVID level. We're crawling out of it, but we've still got a long way to go."
From an economic perspective, Goss sees the actions of some officials as having a negative effect.
"Across the nation, we have decision makers, political decision makers locking down again," Goss said. "In my judgment, data suggests that's not the way to go. In other words, it definitely increases unemployment rates and yet, I've found it doesn't have that much of an impact on, believe it or not, COVID-19 death rates or infection rates."
Business is slowing down, even in the areas where there aren't as many people.
"38% said they had declines in customers coming in to the bank," Goss said. "That's quite significant. Also, one-third said that farmers had cut back on their loan outs. That's a pretty big number. All in all, it's having a much bigger impact in urban areas, but still, in rural areas it's having some fairly significant impacts, as well."
The overall index for July climbed to 44.1, well below growth neutral, but up from June’s 37.9 and April’s record low 12.1. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.