Business survey shows growing profits but worries over inflationA statewide survey has found that professional business services firms in Minnesota anticipate growing profits and revenue but are concerned about increasing inflation.
A statewide survey has found that professional business services firms in Minnesota anticipate growing profits and revenue but are concerned about increasing inflation. The Minnesota Department of Employment and Economic Development (DEED) and the Federal Reserve Bank of Minneapolis conducted the survey.
The random sample survey with responses from 246 professional business services firms found that 48 percent of respondents expect increases in revenue, and 40 percent expect increases in profits next year. About one-third expect revenue and profits to remain the same.
"Business services firms are important indicators of business conditions and trends, and in Minnesota we're seeing signs of recovery in revenue and productivity," said DEED Commissioner Mark Phillips. "While business services firms anticipate more merger activity, they're also optimistic that a stronger economic recovery is in the picture for 2013."
Some job gains are expected in professional business services. Twenty-three percent of survey respondents expect to increase employment during the next year compared with 8 percent that may cut jobs, and 58 percent indicated they expect to increase wage levels. Nearly 65 percent of business services respondents expect increasing inflation, and nearly 40 percent indicated they expect an increase in mergers and acquisitions.
Conducted in April and May of this year, this is the sixth survey of Minnesota business services firms released from DEED in conjunction with the Federal Reserve Bank of Minneapolis. The survey has a margin error of plus or minus 6.2 percent at a 95 percent confidence level.
The full report is available on the DEED website: http://tinyurl.com/6we9zjc
The survey, prepared by the DEED Office of Analysis and Evaluation in conjunction with the Federal Reserve Bank of Minneapolis, elicited 246 responses from randomly selected Minnesota business services firms. The sampling error is +/-6.2 percent.
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.