Economic Outlook
June survey highlights:
* The Business Conditions Index expanded to a reading slightly above growth neutral.
* Job losses continued for June with an employment index well below growth neutral.
* In terms of hiring for the rest of 2020, 51% expect no changes, 17% anticipate bringing back furloughed workers, 26% expect to bring back furloughed workers and add new workers, and 6% predicted a continuation of layoffs.
* Regional trade numbers remain near record lows.
June Survey Results at a Glance:
* Overall index advanced to a weak level. More than three fourths of bank CEOs reported an economic downturn in their local area.
* Almost one-third of bankers with local ethanol plants reported current production shutdowns, either permanent or temporary.
* Approximately 33.5% of bankers expect low commodity prices to be the greatest economic challenge over the next 12 months for their Rural Mainstreet bank.
*More than one-fourth, or 27.3%, of bankers indicated that rising loan defaults represented the biggest challenge for their banks for the next 12 months.
