(Omaha) — Outside factors continue to cause uncertainty in the Midwest economy.
That’s according to Creighton University Economics Professor Dr. Ernie Goss, who says volatility remains in the rural economy. That’s reflected in November’s Rural Mainstreet Index, which totaled 44.0. This month’s reading marked the ninth time this year the index has fallen below the growth neutral mark of 50.0. Approximately 31.8% of the bank CEOs surveyed in 10 Midwestern states–including Iowa, Nebraska and Missouri–indicated their local economy was in a recession. Though the new hiring index increased from 44.0 last month to 49.5 this month, Goss tells KMA News plans to close Lexington, Nebraska’s Tyson Foods plant may negatively impact the rural job market.
“Now, we’ve had a closure,” said Goss. “The largest beef plant in America is closing in Lexington, Nebraska. Of course, that spills over. Every 3,200 jobs, there will be another 3,200 jobs lost in non-farm (employment).”
Though the federal government’s 39-day shutdown recently ended, Goss says the uncertainty it created for farmers remains.
“Farmers are attempting to plan,” said Goss. “Of course, what happens with farm support payments from the federal government is very important. It’s very hard to get a read on what’s going on there. The president’s promised certain support levels. Of course, that would be helpful to the agricultural economy. But, it has a lot to do with uncertainty–and uncertainty’s playing a big part in terms of trade, in terms of U.S. farm policy.”
One possible boost to the local economy is retail sales spurred by the Christmas buying season. That’s why Goss joins the chorus of local officials repeating one message: buy local.
“When your local providers are providing competitive prices and good services–buy locally,” said Goss. “It spills over, and is much better for the rural economy, the local economy than buying from outside the area.”
Goss made his comments in an interview on KMA’s “Morning Line” program earlier this week.
