The economy this year continues to perplex even the most knowledgeable economists. A couple of the economic indicators that we like to examine are the Rural Mainstreet survey conducted by Ernie Goss from Creighton University and the Quarterly Business Survey by the Iowa Association of Business and Industry (ABI).
Most tellingly, the Rural Mainstreet Survey of bank CEOs from smaller rural communities shows several areas of concern.
For the first time since March of this year, the overall Rural Mainstreet Index sank below growth neutral.
Approximately half of bankers expect economic conditions to worsen in the next six months.
Approximately 46.4% of bankers indicated that they expect another banking crisis in 2023.
“This is the weakest recorded reading since March of this year. Bankers indicated that the biggest challenge to community bank profitability over the next 12 months will be a downturn in farm income,” said Ernie Goss, Ph.D., Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
The survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. The index provides the most current real-time analysis of the rural economy.
In less pessimistic results, the ABI survey, which represents many of Iowa’s largest businesses and manufacturing companies, reveals:
Approximately 39% of respondents anticipate sales to expand, mirroring the same percentage who expect sales to remain stable. Notably, 21% of respondents are cautious, anticipating a reduction in sales.
A significant 46% of respondents anticipate an increase in the number of employees within their organizations over the next quarter. Meanwhile, only 17% expect a decrease in employees.
The survey also revealed that most respondents, 64%, have plans to make capital expenditures in the upcoming quarter.
There are few indicators more important to understanding Iowa’s diverse economy than these two surveys. Unfortunately, neither provide a clear picture of the economy.
Congratulations Hands Up Communications
One of the Corridor’s most dynamic businesses continues to collect accolades. Hands Up Communications, based in Cedar Rapids, was recently recognized as part of the U.S. Chamber of Commerce’s top 70 small businesses.
Winning companies were evaluated on their business growth, ability to overcome challenges, innovative strategies for success and community engagement. Hands Up will compete for one of seven finalist spots.
Hands Up is a “one-stop shop” for language translation, interpretation and transcription services, serving clients such as medical clinics, law enforcement agencies, schools and businesses. They were selected as the Coolest of the Cool in 2020 as part of the CBJ’s Coolest Places to Work awards program.
Congratulations to Hands Up’s continued success.
