SAINT PAUL — Every region in Minnesota is expected to see continued economic expansion over the next several months, according to new economic reviews and forecasts released today by Secretary of State Steve Simon and the St. Cloud State University School of Public Affairs Research Institute.
The 2017 second quarter Minnesota Regional Economic and Business Conditions Reports predict all six planning areas—metro, central, northeast, northwest, southeast, and southwest—will experience either strong or steady economic growth in the coming months. For the second quarter in a row, the unemployment rate decreased in all six planning areas compared to year ago levels. Business filings also increased in three of the six planning areas statewide. To view each region’s full report online, click here.
“We expect continued above-normal growth throughout most of Minnesota,” said King Banaian, report co-author and dean of the School of Public Affairs at St. Cloud State University. “Southwest Minnesota paused earlier in the year but some strengths are appearing in its leading indicators. All six areas are expected to remain in expansion throughout the rest of 2017.”
Over 60 percent of new business filers in each planning area completed the voluntary Minnesota Business Snapshot (MBS) survey. MBS is a new initiative designed to better serve Minnesotans and advance economic development by using voluntary survey information from Minnesota businesses, such as whether they self-identify as a member of specific communities, including veterans, women, or communities of color; the industry or field in which the business operates; or how many full-time employees they have. At least 34 percent of new business filings were initiated by women in each planning area, with the Northeast planning area seeing 43 percent. More information can be found in each report.
“It is encouraging and exciting to see a majority of businesses taking part in the Minnesota Business Snapshot,” said Secretary Simon. “The inclusion of this data in the regional economic reports provides Minnesotans with information on not only the number of new businesses being created, but additional details that paint a fuller picture of the state’s business community.”
The reports were developed by the St. Cloud State University School of Public Affairs Research Institute, as part of its ongoing partnership with the Office of the Minnesota Secretary of State. The Secretary of State’s Office reviews and approves all Minnesota business filings, and commissioned the reports to provide a perspective on business conditions and deliver a tool for entrepreneurs to better understand their region. There is one quarterly report for each of six statewide planning areas. The economic reviews and forecasts are based on a comprehensive examination of several datasets, including business filings.
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Twin Cities
The Twin Cities economy is expected to see steady economic growth over the next several months, according to a variety of economic indicators. The Twin Cities Index of Leading Economic Indicators (LEI) rose 2.54 points in the second quarter. Three of five index components increased in the second quarter.
There were 10,835 new business filings with the Office of the Minnesota Secretary of State in the seven-county metro area in the second quarter of 2017 — representing a 6.4 percent increase from one year ago.
Sixty percent of new business filers in the Twin Cities planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s second quarter. Results of this voluntary survey indicate that almost 13 percent of new filers come from communities of color; nearly 5 percent from veterans; about 2 percent from the disability community; and more than 8 percent from the immigrant community. Thirty-four percent of new business filings in the Twin Cities planning area were initiated by women.
Employment increased by 2.7 percent over the year ending June 2017. The regional unemployment rate was 3.5 percent in June, lower than its reading one year earlier.
Central
Central Minnesota’s economy is expected to experience strong economic growth over the next several months, according to a variety of economic indicators. The Central Minnesota LEI rose by 6.20 points in the second quarter. Four of five components produced positive readings in the second quarter.
There were 1,440 new business filings with the Office of the Minnesota Secretary of State in Central Minnesota in the second quarter of 2017 — representing a 1 percent decrease from one year ago.
Sixty-five percent of new business filers in the Central Minnesota planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s second quarter. Results of this voluntary survey indicate that about 4.2 percent of new filers come from communities of color; more than 7 percent from veterans; about 1 percent from the disability community; and 3.7 percent of new filings were made by the immigrant community. Thirty-five percent of new business filings in Central Minnesota were initiated by women.
Employment increased by 1.8 percent over the year ending June 2017. The regional unemployment rate was 3.8 percent in June, much lower than one year ago.
Northeast
Steady economic growth in Northeast Minnesota is expected over the next several months, according to a variety of economic indicators. The Northeast Minnesota LEI increased by 0.68 points in the second quarter, with four of the five components experiencing an increase.
There were 681 new business filings with the Office of the Minnesota Secretary of State in Northeast Minnesota in the second quarter of 2017 — representing an 11.8 percent increase from one year ago.
Sixty-four percent of new business filers in the Northeast Minnesota planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s second quarter. Results of this survey indicate that about 4.1 percent of new filers come from communities of color; nearly 9 percent from veterans; over 4.5 percent from the disability community; and less than 1 percent from the immigrant community. Forty-three percent of new business filings in Northeast Minnesota were initiated by women.
Employment was 1.2 percent higher than year ago levels in June. The regional unemployment rate was 5.2 percent, considerably lower than one year ago.
Northwest
Northwest Minnesota’s economy is expected to experience steady growth over the next several months, according to a variety of economic indicators. The Northwest Minnesota LEI rose by 1.78 points in the second quarter, as three of the five components of the leading index increased.
There were 1,215 new business filings with the Office of the Minnesota Secretary of State in Northwest Minnesota in the second quarter of 2017 — representing an 11.7 percent increase from one year ago.
Sixty-four percent of new business filers in the Northwest Minnesota planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s second quarter. Results of this survey indicate that 2.4 percent of new filers come from communities of color; 6.6 percent from veterans; less than 1.5 percent from the disability community; and less than 1 percent from the immigrant community. Thirty-six percent of new business filings in Northwest Minnesota were initiated by women.
Employment increased by 0.4 percent over the year ending June 2017. The regional unemployment rate was 3.9 percent in June, which was lower than the 4.4 percent rate observed one year ago.
Southeast
Southeast Minnesota’s economy is expected to see steady growth over the next several months, according to a variety of economic indicators. The Southeast Minnesota LEI fell 1.01 points in the second quarter of 2017 (after increasing by a revised 11.83 points in the first quarter). Four components of the LEI had negative readings in the second quarter.
There were 886 new business filings with the Office of the Minnesota Secretary of State in Southeast Minnesota in the second quarter — representing a 2.7 percent decrease from one year ago.
Sixty-three percent of new business filers in the Southeast Minnesota planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s second quarter. Results of this survey indicate that more than 5.5 percent of new filers come from communities of color; more than 5.5 percent from veterans; 1 percent of new filers come from the disability community; and 5 percent from the immigrant community. Thirty-seven percent of new business filings in Southeast Minnesota were initiated by women.
Employment increased by 1 percent over the year ending June 2017. The regional unemployment rate was 3.4 percent in June, lower than the 3.6 percent level recorded in the year earlier period.
Southwest
Southwest Minnesota’s economy is expected to see increased economic growth over the next several months, according to a variety of economic indicators. The Southwest Minnesota LEI increased by 5.76 points in the second quarter. Two of the four LEI components were positive in the second quarter.
There were 681 new business filings with the Office of the Minnesota Secretary of State in Southwest Minnesota in the second quarter — representing 2.3 percent fewer new filings than one year ago.
Sixty-one percent of new business filers in the Southwest Minnesota planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s second quarter. Results of this voluntary survey indicate that a little over 4 percent of new filers come from communities of color; more than 8 percent from veterans; about 2.2 percent from the disability community; and about 2.2 percent from the immigrant community. Thirty-eight percent of new business filings in Southwest Minnesota were initiated by women.
Employment decreased by 0.2 percent over the year ending June 2017. The regional unemployment rate was 3.5 percent in June, a decrease from its 4 percent reading in June 2016.