What are the forces moving the Minnesota economy? Adam Belz tries to identify the trends and show the connections between Minnesota and the larger U.S. and global economies. You can connect with him on Twitter: @adambelz
Firms in Minnesota that provide services to other businesses – like accounting, legal, public relations and architectural outfits – are more confident about their prospects than they were a year ago.
According to a survey of Minneosta business services firms released Monday, 52 percent believe their revenue will grow over the next 12 months. That’s compared to 46 percent a year ago.
Some 44 percent believe profits will rise over the next 12 months, compared to 41 percent a year ago.
The survey, conducted by the Federal Reserve Bank of Minneapolis and the Minnesota Department of Employment and Economic Development, collected responses from 241 business services firms in April and May.
An argument could be made that the predictions are too pessimistic, as well. In 2013, 46 percent of respondents said they expected revenue to climb over the next 12 months. But when asked in 2014, 51 percent said revenue had increased.
The survey also asked questions about the North Dakota oil boom and its effect on Minnesota business services firms. Some 17 percent of respondents said North Dakota’s oil patch has driven sales for their firm, but 96 percent said it has had no impact on hiring.