By Andi Anderson
The June 2025 Agrifood Economy Index (AEI) indicates a strong rebound in industry sentiment, though overall confidence remains below baseline.
Developed by Purdue University’s DIAL Ventures, the AEI measures short- and long-term outlooks across six major agrifood sectors: agricultural input manufacturing, input distribution, agricultural production, processing and handling, food manufacturing, and support services.
The second-quarter survey gathered input from more than 220 industry executives. Results show the AEI climbed 10 points to 92, up from March’s low of 82. This is the largest single-quarter gain since the index was created.
However, the index remains 13 points below June 2024 levels and 8 points below the neutral mark of 100.
According to research manager Lourival Monaco, current sentiment (92) and future sentiment (91) are nearly identical for the first time in a year. This suggests that agrifood leaders expect a slow-paced recovery rather than a return to high optimism.
Four of the six sectors improved this quarter. Agricultural production led the way, reaching its highest index on record due to stronger commodity prices, reduced input constraints, and seasonal growth.
Processing and handling also rebounded from first-quarter lows, while input manufacturing and input distribution showed moderate gains. In contrast, food manufacturing and support services slipped to their lowest levels since the survey began.
Investment sentiment remains steady at 92–93 for the third consecutive quarter, indicating that companies remain cautious about committing capital for major expansion projects. This reflects ongoing uncertainty about broader economic conditions despite gains in production.
Looking forward, survey participants expect conditions to remain relatively stable, with slight improvements possible in production and processing. However, the consistent weakness in food manufacturing and support services points to uneven recovery across the agrifood value chain.
While the index shows resilience compared to earlier in the year, it highlights that the agrifood economy is still facing challenges and has not yet regained full momentum.
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Categories: Indiana, Business, General