According to a survey by landowners' lobby group the Country Land and Business Association, the rural economy in England and Wales showed signs of picking up during the second quarter of the year.

The Rural Economy Index, produced by CLA and rural property company Smiths Gore, for Q2 2013 should give "grounds for optimism," according to CLA President Harry Cotterell. Mr Cotterell said rural business holders interviewed as part of the survey were more optimistic than in the first three months of the year.

He continued, "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." The survey revealed that a slide in sales noted earlier in the year stopped in Q2, when 40 percent of businesses reported sales at about the same level as before and around 30 percent reported higher sales.

Jason Beedell, Head of Research at Smiths Gore, also commented, "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."

However, CLA and Smiths Gore noted that most of the upturns in circumstances and optimism appear to be focused on non-agricultural rural businesses. The survey found that "Agricultural businesses continue to expect sales and profits to be lower in the next 12 months but the sector is less negative than it was in Q1." Nevertheless, seven of the eight criteria assessed by the survey showed improvements for agricultural businesses.