Increased demand for Minnesota-made goods in China, Japan, Canada, Mexico, South Korea, Belgium, Singapore and the Philippines helped boost exports in 2011 by $1.4 billion.

Minnesota exports grew two percent in the first three months of 2012 to $4.9 billion, according to the Minnesota Department of Employment and Economic Development. Canada was the state's biggest export customer. Exports to South Korea and Mexico jumped roughly 25 percent.

Despite slowing economies in Asia and Europe, Minnesota exports broke a record in the second quarter, reaching $5.4 billion. The previous record was $5.3 billion in the same quarter last year. Minnesota increased exports to Canada, the state's largest foreign buyer, by 2.8 percent to $1.6 billion.

New state data for the second quarter of 2012 has revealed that the state government has shed 863 positions -- more than two percent of its workforce -- from the same period a year ago. Among those affected the most are the Department of Transportation, which lost 298 positions, leaving a workforce of 4,686 people; and the Employment and Economic Development Agency, which shed 218 positions to leave 1,570 employees.

In its forecast for the new year the Fed says agriculture and mining look strong in Minnesota but the housing construction market remains sluggish.

Building permits are on the rise in the Twin Cities. According to data from the Keystone Report for the Builders Association of the Twin Cities, building permits issued in the Twin Cities this month were up 57 percent over last July, to 403, and the number of units permitted more than doubled, to 783. The data also revealed that 3,953 units have been permitted, up 75 percent over the same time last year.