A statewide survey finds professional business service firms see reasons for optimism about the economy during the next year.
A survey by the Minnesota Department of Employment and Economic Development (DEED) and the Federal Reserve Bank of Minneapolis says nearly half of the respondents expect to see increases in revenue; 40 percent expect an increase in profits; about a third expect revenue and profits to stay the same.
DEED's economic analysis director, Neal Young, says the survey also found reason for optimism for workers as well. "We did find that business services firms expect that wages are going to go up -- 58 percent of our respondents expected to increase wages over the next year," Young said.
On the other hand, more than half the respondents predict a rise in inflation. The survey, among professional business service firms such as engineers, accountants and consultants, was conducted in April and May, and has a margin of error plus or minus 6.2 percent.
Young says the results have implications for more than just the services sector: "These businesses, they work for industries throughout our economy and so if they are optimistic about the general direction of the economy as well as their business, it generates some optimism for our economy more broadly."