Economic Outlook

Economic Outlook

Recent Survey Results

November Mid-America Business Conditions Weak:
2017 Expected Wage Gains Below 3 Percent

November highlights:

* For a fifth straight month, the overall index sank below growth neutral 50.0.
* Employment index remained below growth neutral for a sixth consecutive month.
* Government data show that over the past 12 months regional manufacturing employment declined by 1.2 percent, but regional nonmanufacturing employment expanded by 0.8 percent.
* On average, companies across the region expect 2017 wage gains of 2.7 percent over 2016 levels.
* Almost four in 10 supply managers expect continuing slow growth to be the economic challenge for their company for 2017.

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Rural Mainstreet Index Still Weak for November:
Negative Cash Flows for One-Fifth of Livestock Farmers

November Survey Results at a Glance:

* For a 15th straight month, the Rural Mainstreet Index fell below growth neutral.
* Farmland prices decline for 36th straight month.
* More than seven of 10 bank CEOs indicated that their bank had increased collateral requirements as a result of declining farm income.
* More than one of four bank CEOS indicated that their bank has made no lending changes due to falling farm income.
* More than one-fifth of livestock producers are expected to report negative cash flow for 2016 (cash expenses above cash revenues).
* States trending higher: Iowa and South Dakota; States trending lower: Colorado, Kansas, Illinois, Missouri, North Dakota and Wyoming; States treading water: Minnesota, Nebraska.

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