Economic Outlook
Recent Survey Results
Mid-America Economy Growing, But Slowly:
Wholesale Inflation Still Too High
March 2023 Survey Highlights:
• For a second straight month, the region’s overall index climbed above growth neutral.
• The regional wholesale inflation gauge continues to indicate significant inflationary pressures.
• On average, supply managers expect a 3.4% wage gain for 2023, or well below the rate of inflation.
• In terms of the greatest 2023 economic challenges, four of ten supply managers named supply chain disruptions and delays, and three of ten identified labor shortages as top threats.
Rural Mainstreet Banks Lose Deposits Again
Bank CEOs Expect Flat Farmland Prices Over Next 12 Months
May 2023 Survey Results at a Glance:
• The May 2023 Rural Mainstreet Index (RMI) rose above growth neutral to its highest reading since May 2022.
• On average, bankers estimated that farmland prices in their area rose 4.3% over the past 12 months.
• On average, bankers expect farmland prices in their area to remain stagnant (0%) for the next 12 months.
• For the second straight month, checking deposits decreased to a record low.
• Approximately 84.6% of bank CEOs expect banks to continue to report insolvency challenges.
• Between the 2008-09 banking crisis and December 2022, the region lost 41.5% of its banks through mergers and insolvencies.
