The rural economy is slowly rebounding from the impact of the COVID-19 pandemic. The Rural Mainstreet Index (RMI), a monthly survey of bank CEOs in a 10-state Midwest region, hit 53.2 in October.
October’s index represents the sixth straight month of improving economic conditions. The index ranges between 0 and 100, with 50 representing growth neutral. In April, the RMI hit its lowest-ever reading of 12.1.
“Recent improvements in agriculture commodity prices, federal farm support and the Federal Reserve’s record low interest rates have underpinned the Rural Mainstreet Economy,” says Ernie Goss, Creighton University economist.
More than eight of 10 bank CEOs identified restaurants/bars as experiencing the greatest negative impact from COVID-19. Nearly one in six restaurants is closed either permanently or long-term, according to a survey by the National Restaurant Association.
The analysis shows the foodservice industry lost $165 billion in revenue from March through July.
