OMAHA, Neb. (AP) - Better hiring prospects pushed the March results of a monthly survey of rural bankers to its strongest figure to date.
The economic index figure of 68.1 was compiled from the survey of bank presidents and chief executive officers in a nine-state region that includes North Dakota. It hit a record high after dipping to 60 in February.
Both figures were markedly higher than the 51.6 reported in March last year, said Creighton University economist Ernie Goss, who released the survey results.
Goss and Bill McQuillan, chief executive officer of City National Bank in Greeley, Neb., created the monthly economic survey of rural bankers in North Dakota, Colorado, Illinois, Iowa, Kansas, Missouri, Nebraska, South Dakota and Wyoming.
The Mainstreet economic index ranges between 0 and 100. An index number of 50 or higher indicates a growing economy over the next three to six months.
Strong farm income was responsible for much of the growth, Goss said in the survey report.
Survey responders in all states reported strong job growth, reflected in a record index of 66, which was up from 56.4 in February and 48.3 in March 2006.
Gains in Colorado, Missouri, South Dakota and Wyoming were much higher than elsewhere, the survey found.
"Over the past six months, a rising share of bankers report that shortages of skilled labor were restraining economic growth," Goss said. "Even so, I expect job growth to continue at a solid pace over the next three to six months."
The farmland price index fell to 73.4 after hitting a record high 75 in February.
"Land prices continue to move higher," said Jeffrey Gerhart, CEO of the First National Bank of Newman Grove, Neb. "Recently, 80 acres of dry land north of town that can have irrigation added sold for $2,650 per acre."
Despite high grain prices, increased planting and strong farm income, the bankers reported modest increases in the purchase of agricultural equipment. That index rose to 54.3 from 53.4 in February and 52.3 in January.
"The index has been much higher for areas dominated by crop farming than for areas where livestock production is predominant," Goss said.
Posted in State-and-regional on Friday, March 16, 2007 7:00 pm Updated: 3:47 pm.
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