Bankers Survey Suggests Drought Hurting Economy
Associated Press - Thu 08:19 PM 07/19/2012
A new survey of bankers suggests the economy is slowing down in rural areas of 10 Midwest and Western states because of drought conditions.
A new survey of bankers suggests the economy is slowing down in rural areas of 10 Midwest and Western states because of drought conditions.
The overall economic index dropped into negative territory at 47.9 in June from May's 56.7. Any score below 50 on the index, which ranges from 1 to 100, suggests contraction in the months ahead.
The survey covers parts of Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming. It focuses on communities with 1,300 residents, on average.
Creighton University economist Ernie Goss says the drought is hard on farmers, livestock producers and ethanol plants in the region.
The confidence index collapsed to 40.9 in June from May's strong 58.5. That suggests bankers aren't confident in the economy over the next six months.
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Iamgonnagetu
Thursday 19 July 2012 22:10 Report this comment
Us taxpayers bailed the banks out. Now the banks refuse to make loans. That is what is hurting the economy. Many people no longer trust banks and all their high fees. Until banks start making loans again the economy will suffer.
2gud4u
Friday 20 July 2012 11:36 Report this comment
When will the government and economy and all the people concerned realize the earth is in a cycle. This drought has happened years ago.. Just wait until the big ice age cycle then people today will freak out about that..