Madeline Koch, 651-259-7236
ST. PAUL – Professional business services firms in Minnesota are optimistic about the economy this year, anticipating increased profits and revenue, according to a statewide survey released by the Minnesota Department of Employment and Economic Development (DEED) and the Federal Reserve Bank of Minneapolis.
The random sample survey collected responses from 241 business services firms, including legal, public relations, engineering and accounting businesses. Findings include the following:
1. 82 percent of surveyed businesses expect profits to either increase or remain the same (up from 75 percent in 2013).
2. 52 percent of business services respondents expect increases in revenue (up from 46 percent in 2013).
3. 61 percent of business services respondents expect inflation to increase.
“Minnesota’s service firms directly benefit from a growing economy and as a result are strong indicators of business conditions and trends,” said DEED Commissioner Katie Clark Sieben. “With 82 percent of surveyed business service firms expecting steady or increased growth in the near future, we know business confidence is on the rise.”
In a new survey question, 17 percent of business services firms surveyed said they have experienced an increase in sales as a result of the oil boom in North Dakota.
Some job gains are expected in professional business services in the next four quarters. Forty-nine percent of survey respondents expect an increase in both employment and consumer spending.
The full report is available here: http://mn.gov/deed/data/research/biz-industry-conditions.jsp Conducted in April and May of this year, the ninth annual survey of Minnesota business services firms was prepared by the DEED Office of Analysis and Evaluation in conjunction with the Federal Reserve Bank of Minneapolis. The survey elicited 241 responses from randomly selected Minnesota business services firms. The survey has a sampling error of +/-6.3 percent at a 95 percent confidence level.
As one of 12 regional reserve banks that serve as the nation’s central bank, the Federal Reserve Bank of Minneapolis is responsible for making and carrying out monetary policy, supervising and regulating banks and bank holding companies, and providing financial services to depository institutions and the U.S. Treasury.
DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at http://mn.gov/deed/. Follow us on Twitter at twitter.com/mndeed.
Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161.