The CLA said today that its survey for the Second Quarter of 2013 shows the rural economy is picking up.
The Rural Economy Index, researched in conjunction with Smiths Gore, shows grounds for optimism, said CLA President Harry Cotterell.
Cotterell said: "The survey's findings indicate that in the second quarter of the year rural businesses were more optimistic than in the first three months.
"From Quarter One to Quarter Two, business confidence in agriculture and in non-agricultural rural businesses rose. Both farming and non-farming businesses expect to employ more people in the next 12 months."
Cotterell added: "The slide in rural business sales has also stopped, with 40 percent of businesses reporting sales at about the same level as before and around 30 percent reporting higher sales. Investment by non-farming businesses is also up and now at its highest level for a year."
Jason Beedell, Head of Research at Smiths Gore, said: "Rural businesses have reported higher sales and more business enquiries in the past six months. Confidence is on the increase which translates into positive prospects for investment and employment in the rural sector in the next few months.
"There is evidence that there is a recovery on the way for the rural economy but it is still not yet fighting fit. Both agricultural and non-agricultural businesses need access to more affordable finance to be truly on the mend."
