A new survey of Minnesota businesses finds an optimistic outlook on the economy, with expectations that revenue and profits will grow in the coming year.
The news center at the Minnesota Department of Employment and Economic Development has details of the ninth annual survey, prepared by the DEED Office of Analysis and Evaluation in conjunction with the Federal Reserve Bank of Minneapolis. You can download the full report here.
A random sample of Minnesota business services firms was surveyed in April and May. The 241 firms polled included legal, public relations, engineering and accounting businesses.
The findings indicated that 82 percent of of those surveyed expect their profits to either increase or remain the same; that number is up from 75 percent in 2013. The survey also showed that 52 percent of respondents expect to see increases in revenue. That, too, shows an increase from the 2013 survey, when 46 percent anticipated a revenue hike. Forty-nine percent of respondents expect an increase in both employment and consumer spending.
A new survey question gauged the business spillover impact of the North Dakota oil boom; 17 percent of business services firms surveyed said they have experienced an increase in sales as a result of the energy expansion in Minnesota's neighboring state.
“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.”
The survey has a sampling error of +/-6.3 percent at a 95 percent confidence level.