SAINT PAUL — The majority of Minnesota is expected to continue to experience strong economic growth 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 first quarter Minnesota Regional Economic and Business Conditions Reports predict all six planning areas—metro, central, northeast, northwest, southeast, and southwest—will experience either increased or steady economic growth in the coming months. The unemployment rate decreased in all six planning areas. Business filings also increased in four of the six planning areas statewide. To view each region’s full report online, click here.
For the first time, the reports also incorporate data from the Minnesota Business Snapshot (MBS), a recently launched initiative designed to better serve Minnesotans and advance economic development by using voluntary survey information from Minnesota businesses. Each planning area saw over 30 percent of new business filings initiated by women, with Central and Northeast planning areas seeing 43 percent. Additional information—such as the percent of new business filings from members of communities of color, veterans, disability community, and immigrant community—can be found in each report.
“The inclusion of data from the Minnesota Business Snapshot in these regional economic reports will further help small business owners, entrepreneurs, and consumers understand the economic direction and makeup of new businesses in their region and the state,” said Secretary Simon. “I encourage all Minnesotans to take advantage of these resources.”
The reports were developed by the St. Cloud State University School of Public Affairs Research Institute, as part of their 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.
“We continue to see solid economic performance across Minnesota’s six planning areas, with a particularly strong outlook in the Twin Cities, Southeast, Southwest, and Northeast regions,” said Rich MacDonald, report co-author and interim director of the School of Public Affairs Research Institute at St. Cloud State University. “Labor market conditions remain strong across the state as job vacancies remain elevated. Regional bankruptcies continue to trend downward and new business filings are rising across most of the state.”
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Twin Cities
The Twin Cities economy is expected to see strong economic growth over the next several months, according to a variety of economic indicators. The Twin Cities Index of Leading Economic Indicators (LEI) rose 10.66 points in the first quarter. All five index components increased in the first quarter.
There were 11,380 new business filings with the Office of the Minnesota Secretary of State in the seven-county metro area in the first quarter of 2017 — representing a 1.5 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 first quarter. Results of this voluntary survey indicate that more than 14 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-seven percent of new business filings in the Twin Cities planning area were initiated by women.
Employment increased by 1.5 percent over the year ending March 2017. The regional unemployment rate was 3.6 percent in March, a decrease from its reading one year earlier.
Central
Central Minnesota’s economy is expected to experience steady economic growth over the next several months, according to a variety of economic indicators. The Central Minnesota LEI rose by 2.03 points in the first quarter. Four of five components produced positive readings in the first quarter.
There were 1,579 new business filings with the Office of the Minnesota Secretary of State in Central Minnesota in the first quarter of 2017 — representing a 3.3 percent increase from one year ago.
Sixty-eight percent of new business filers in the Central Minnesota planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s first quarter. Results of this voluntary survey indicate that about 5 percent of new filers come from communities of color; about 5 percent from veterans; about 1 percent from the disability community; and more than 3 percent of new filings were made by the immigrant community. Forty-three percent of new business filings in Central Minnesota were initiated by women.
Employment increased by 0.4 percent over the year ending March 2017. The regional unemployment rate was 5.4 percent in March, slightly lower than one year ago.
Northeast
Continued strong economic growth in Northeast Minnesota is expected over the next several months, according to a variety of economic indicators. The Northeast Minnesota LEI surged by 6.25 points in the first quarter, with four of the five components experiencing an increase.
There were 626 new business filings with the Office of the Minnesota Secretary of State in Northeast Minnesota in the first quarter of 2017 — representing a 2 percent decrease from one year ago.
Sixty-six percent of new business filers in the Northeast Minnesota planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s first quarter. Results of this survey indicate that about 3 percent of new filers come from communities of color; more than 10 percent from veterans; nearly 3 percent from the disability community; and 1 percent from the immigrant community. Forty-three percent of new business filings in Northeast Minnesota were initiated by women.
Employment was 0.2 percent lower than year ago levels in March. The regional unemployment rate was 6.8 percent, which was considerably lower than the rate observed 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 remained essentially unchanged in the first quarter, as two of the five components of the leading index increased.
There were 1,195 new business filings with the Office of the Minnesota Secretary of State in Northwest Minnesota in the first quarter of 2017 — representing a 2.4 percent decrease from one year ago.
Sixty-two percent of new business filers in the Northwest Minnesota planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s first quarter. Results of this survey indicate that about 3 percent of new filers come from communities of color; nearly 9 percent from veterans; more than 2 percent from the disability community; and less than 1 percent from the immigrant community. Thirty-nine percent of new business filings in Northwest Minnesota were initiated by women.
Employment decreased by 0.2 percent over the year ending March 2017. The regional unemployment rate was 6.3 percent in March, which was lower than the 6.6 percent rate observed one year ago.
Southeast
Southeast Minnesota’s economy is expected to see continued strong growth over the next several months, according to a variety of economic indicators. The Southeast Minnesota LEI surged by 12.76 points in the first quarter of 2017. Four components of the LEI had positive readings in the first quarter.
There were 932 new business filings with the Office of the Minnesota Secretary of State in Southeast Minnesota in the first quarter — representing a 0.3 percent increase from one year ago.
Sixty percent of new business filers in the Southeast Minnesota planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s first quarter. Results of this survey indicate that more than 5 percent of new filers come from communities of color; nearly 7 percent from veterans; 2 percent of new filers come from the disability community; and about 2 percent from the immigrant community. Thirty-six percent of new business filings in Southeast Minnesota were initiated by women.
Employment fell by 0.1 percent over the year ending March 2017. The regional unemployment rate was 3.9 percent in March, lower than the 4.1 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 4.68 points in the first quarter. Three of the four LEI components were positive in the first quarter.
There were 787 new business filings with the Office of the Minnesota Secretary of State in Southwest Minnesota in the first quarter — representing an 18.3 percent increase in new filings than one year ago.
Sixty percent of new business filers in the Southwest Minnesota planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s first quarter. Results of this voluntary survey indicate that a little over 3 percent of new filers come from communities of color. Nearly 6 percent of new businesses filings are from veterans. About 1.5 percent of new filers come from the disability community and nearly 3 percent of new filings are made by the immigrant community. Thirty-five percent of new business filings in Southwest Minnesota in this year’s first quarter were initiated by women.
Employment decreased by 1 percent over the year ending March 2017. The regional unemployment rate was 4.7 percent in March, a decrease from its 4.9 percent reading in March 2016.