(Omaha World-Herald) -- For the second consecutive month, rural bankers in the Midwest on Thursday reported the largest economic decline since Creighton University began surveying them in late 2005. Weather contributed to the downturn, especially flooding in Iowa and Illinois that damaged crops and hurt business activity in general, according to Creighton economist Ernie Goss. The 180 bank executives' responses yielded a MainStreet Economic Index of 40.8, down from 42.6 in May. An index below 50 indicates economic decline. The bankers also noted declining home sales, hiring and retail sales. Yet, overall loan volume was up. The bankers reported decreasing checking deposits, farmland prices and farm equipment sales. Nebraska's index dropped sharply, to 41.8 from 62 in May. One-fourth of the bankers said weather would hurt local corn yields, and many said high fuel prices were hurting the crop and livestock sectors as well as general business activity.
