10:25am Thursday 23rd April 2009
Confidence in the rural economy is dramatically higher than confidence in the general economy – and increasingly so, according to the second quarterly results of the Rural Economy Index, published by the Country Land and Business Association (CLA).
Only four per cent of those surveyed had no confidence at all in the rural economy over the next three to six months, while no-one had any confidence in the general economy in the short term and an increased number – 69 per cent – no confidence at all.
The index is conducted quarterly to sample confidence in the rural economy by surveying 100 CLA members.
Its northern director, Douglas Chalmers, said: “The strong message here is that the confidence of rural businesses is up on our last set of results. The signs are that they are fending off the negative effects of the recession better than the rest of the economy.
“Fifty-eight per cent believe their business performance will be in line with expectations over the next six months, with 12 per cent believing their business will perform well in the short term.
"A specific example is the increase in confidence in the rural tourism sector as bookings have increased prior to the holiday season.
"But we must not let these positive feelings mask the problems we face. There are businesses suffering. Lack of cash flow is a major obstacle to productivity, with lack of general spending and too much legislation also mentioned.
“Eighty-seven per cent of respondents say that effective and affordable broadband is vital for rural businesses and the CLA has led the way in lobbying for this.”
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