NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Creighton University economist Ernie Goss said his survey of Midwest Bank CEOs in small towns reveals real concerns across the region.
"I think what we're seeing is the farm economy is weakening," Goss said. "With the global economy slowing down, particularly in China and Asia, we're also talking about higher interest rates cutting into farm equipment sales. Commodity prices are just not where we'd like to see them, although, compared to a few years ago, they're still not that bad."
There are still jobs out there, if you want one.
"Hiring is still okay, although it's certainly weaker," Goss said. "The numbers that came out, we're seeing lately, hiring nationwide is doing reasonably well. I don't think we've reached the bottom yet. It's probably not quite as bad as I'm portraying it, but it's certainly moving in the wrong direction."
The cost of borrowing appears to be an important reason for the lack of confidence, according to Goss.
"The Federal Reserve remains on the sideline," Goss said. "They meet again at the end of this month. They won't do anything this month, but they may raise rates by another quarter percent before the year end, but that's not going to matter too much. It's these bond rates that are going up and up and up and we're talking about interest rates, home loan, mortgage rates going up. That's really not a good issue."
Struggling farmland prices also are pulling down overall economic conditions across the Midwest, with prices still growing, but much slower than in previous years.
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