Rural businesses poised for economic recovery?

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Every cloud has a silver lining - even if it's a very dark cloud, full of water and preceded by an unseasonably chilly wind.

What am I talking about? The CLA's Rural Economy Index, of course.

clouds.JPGAccording to the latest survey, for the second quarter of this year, rural businesses are growing increasingly confident about their future prospects.

The survey is based on a blend of rural businesses - farms, estates, rural surveyors, tourist-based activities, food service outlets etc.

According to the report, some 17% of the 100 companies surveyed said they felt their businesses would grow in the next six months, compared with just 12% who felt that in the first quarter of the year....

And in terms of "confidence in the state of the rural economy", some 38% said they were "quietly confident", compared with just 22% in the first three months of 2009.

Of course there are differences within the CLA's basket of businesses, though these are not spelled out in the survey. But it is likely that farmers are among the 12% who felt their business performance is likely to be "worse than planned" over the next six months and the 38% who are feeling "not very confident" about the state of the rural economy.

With the slide in grain, milk and sheep prices in particular, but also the prospect of rising fuel costs this winter and problems with credit availability, this is hardly surprising.

Converesely, those with tourist activities are certainly feeling more positive, as the recession and the weak £ have persuaded many more people to take their holidays in the UK this year (hence the slightly clumsy "cloud and silver lining" reference at the start of this blog!)

Overall, however, the survey is good news It shows that those in rural areas are more atuned at weathering economic downturns than those in other sectors, and are likley to act as a driver that can pull the whole economy out of recession.

The hope must be that it's not too long before farmers, too, see the promised benefits of growing world demand and firmer commodity prices.

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About this Entry

This page contains a single entry by Philip Clarke published on August 13, 2009 3:14 PM.

Beef price slump "hugely overcooked" was the previous entry in this blog.

Zero tolerance on GM feeds must go is the next entry in this blog.

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