AN UPBEAT picture of the region’s rural economy has been painted by a quarterly business survey.

It found an increase in the number of farming and nonagricultural businesses that expect to create jobs and invest in their businesses during the next 12 months.

The Rural Economy Index is compiled by the Country Land and Business Association (CLA) and Smiths Gore.

It uses net balances to show the direction and scale of changes. The net balance shows the proportion of businesses showing a rise in sales, minus those reporting a fall.

Optimism among agricultural businesses rose six per cent to a net balance of plus 42 per cent – the highest level recorded – as farming recovers from its dip in 2012.

The number of farms expecting to invest in their business showed a big increase – up from six per cent to a net balance of plus 36 per cent.

Among non-agricultural businesses, a net balance of plus 46 per cent expect to invest more in the next 12 months – again the highest level the index has recorded.

Dorothy Fairburn, CLA north regional director, said the findings were good news for the region’s rural economy.

“We certainly seem to have turned a corner in terms of economic recovery in the rural north.

“Farm businesses are recovering from a challenging 2012, and are looking at development projects that were shelved during the downturn.”

Dr Jason Beedell, head of research at Smiths Gore, said: “Just under 40 per cent of the non-agricultural rural businesses reported higher sales over the past six months and 58 per cent expect sales growth next year, fantastic news for the rural economy.”