Economic Optimism Increases Across Minnesota

MINNEAPOLIS--(BUSINESS WIRE)--Fifty percent of Minnesota businesses recently polled expect the state’s economy to improve in the quarter ending May 30—up from 39 percent in the previous quarter, and double the percent that voiced such optimism only six months ago, according to Twin Cities Business’s quarterly economic indicator survey.

Of 888 businesses from across the state participating in the survey, 49 percent also said they thought national and international economic conditions will improve this quarter, up from only 32 percent that expressed such views about the first quarter of 2012.

The increased optimism comes as Minnesota businesses invest more in their operations. Planned investments in capital outlays and research and development have risen in each of the last three quarterly surveys. For the current quarter, 38 percent of Minnesota businesses plan to increase their capital outlays, while 28 percent plan to boost research and development spending.

Optimism in the economy also continues to stimulate hiring. The survey found that 40 percent of responding businesses plan to add to their full-time employment levels this quarter—up from 37 percent who planned to increase headcount during the first quarter, and 29 percent during the last quarter of 2011.

The only troubling sign from the survey is that 29 percent of respondents expect it to be more difficult this quarter to find qualified talent. This marks the third consecutive quarterly increase in the percentage of companies expressing concerns on this issue.

Additional information from the survey—including a list of Minnesota industries most actively hiring this quarter—can be found in May’s edition of Twin Cities Business, online now at TCBmag.com, and in print at select newsstands beginning April 27.

Methodology
Each quarter, Twin Cities Business conducts an economic indicator survey to examine business planning and sentiment among leaders from all industries in Minnesota. For the most recent survey, an e-mail link to an online survey was sent to 16,244 Minnesota businesses in mid-March. Reminder e-mails were sent the following week to those who had not yet completed the survey. The Minnesota Chamber of Commerce provided some of the e-mail addresses used in this outreach. As of March 29, 888 businesses responded, resulting in a 5.5 percent response rate.

About Twin Cities Business
Minneapolis-based Twin Cities Business publishes news, analysis, features and commentary about the state’s most interesting business issues, leaders and opportunities daily at TCBmag.com, twice weekly in its “Briefcase” e-newsletter, and monthly through the award-winning Twin Cities Business magazine.