Economic Outlook
Recent Survey Results
Mid-America Index Falls but Remains in Growth Range:
Supply Chain Disruptions Named No. 1 Challenge for Businesses
August Survey Highlights:
• The overall index or business barometer fell in August but remained above growth neutral for the 27th straight month.
• Employment expanded for the month. Approximately one-fourth of supply managers named labor shortages as their firm’s greatest 2022 challenge.
• Even though supply chain disruptions declined in August, almost 6 of 10 supply managers identified disruptions as the major business challenge for the rest of 2022.
• On average, manufacturing supply managers expect a raise of only 3.2% at their next review. This is down from 3.5% recorded last month.
The Rural Mainstreet Economic Index Falls Below Growth Neutral: Fourth Straight Month of Deterioration
September 2022 Survey Results at a Glance:
• The overall index fell below growth neutral for the fourth consecutive month.
• New hiring sank across the region.
• More than two of 10 bank CEOs reported drought impacts were the greatest economic challenge going forward.
• Four of 10 bankers indicated that high and escalating farm input costs were the greatest economic challenge to their bank and area over the next 12 months.
• Approximately 80% of bankers expect the costs of California’s Proposition 12 to be paid by consumers, with only 11.5% expecting the livestock producer to pay the costs.