Minnesota Secretary Of State - Third Quarter Regional Economic Reports Predict Steady Growth Throughout Most of Minnesota
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Third Quarter Regional Economic Reports Predict Steady Growth Throughout Most of Minnesota

January 23, 2018

Over 60 percent of new business filers completed the voluntary Minnesota Business Snapshot survey

SAINT PAUL — Most of Minnesota is expected to see a steady pace of economic expansion over the next several months, despite a slowing of growth in the third quarter, 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 third quarter Minnesota Regional Economic and Business Conditions Reports predict four planning areas—metro, northeast, southeast, and southwest—will experience steady economic growth in the coming months and two planning areas—central and northwest—will experience slower growth. For the state as a whole, there was growth in payrolls, higher earnings per hour, and a lower seasonally adjusted unemployed rate compared to last quarter as well as one year ago. To view each region’s full report online, click here.

“Expected growth of the six planning areas of Minnesota continues to appear positive, though the rate of growth slowed during the quarter,” said King Banaian, report co-author and dean of the School of Public Affairs at St. Cloud State University. “Employment growth was strong throughout the state, though job vacancies are at very high levels. Formation of new corporations was down in three of five greater Minnesota areas versus the third quarter a year ago. Single family building permits fell in most parts of greater Minnesota in September, but continued strong in the Twin Cities.”

Over 60 percent of new business filers in five of six planning areas 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. More information can be found in each report.

“Over 200,000 businesses have taken part in the voluntary Minnesota Business Snapshot,” said Secretary Simon. “Additionally, over 40 percent of new business filings were initiated by women in the majority of planning areas in the state. As more businesses participate in the Minnesota Business Snapshot, the inclusion of this data in the regional economic reports will provide Minnesotans with a more complete picture of the state’s business community. I encourage all Minnesotans to take advantage of this resource.”

The regional economic 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
Economic growth in the Twin Cities is expected to remain steady over the next several months, according to a variety of economic indicators. The Twin Cities Index of Leading Economic Indicators (LEI) fell 5.41 points in the third quarter. Four of five index components decreased in the third quarter.

There were 10,214 new business filings with the Office of the Minnesota Secretary of State in the seven-county metro area in the third quarter of 2017 — representing a 11.1 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 third quarter. Results of this voluntary survey indicate that over 14 percent of new filers come from communities of color; about 4.3 percent from veterans; less than two percent from the disability community; and 9.4 percent from the immigrant community. Thirty-five percent of new business filings in the Twin Cities planning area were initiated by women.

Employment increased by 3.5 percent over the year ending September 2017. The regional unemployment rate was 2.9 percent in September, lower than its reading one year earlier.

Central
The pace of economic growth in Central Minnesota is expected to slow over the next several months, according to a variety of economic indicators. The Central Minnesota LEI fell by 3.28 points in the third quarter. Three of five components produced positive readings in the third quarter.

There were 1,378 new business filings with the Office of the Minnesota Secretary of State in Central Minnesota in the third quarter of 2017 — representing a 15.7 percent increase from one year ago.

Sixty-seven percent of new business filers in the Central Minnesota planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s third quarter. Results of this voluntary survey indicate that about 4.9 percent of new filers come from communities of color; about 5.7 percent from veterans; about 2.5 percent from the disability community; and 3.2 percent of new filings were made by the immigrant community. Forty-one percent of new business filings in Central Minnesota were initiated by women.

Employment increased by 2.7 percent over the year ending September 2017. The regional unemployment rate was 2.9 percent in September, 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 2.59 points in the third quarter, with two of the five components experiencing an increase.

There were 491 new business filings with the Office of the Minnesota Secretary of State in Northeast Minnesota in the third quarter of 2017 — representing a 2.5 percent increase from one year ago.

Sixty-seven percent of new business filers in the Northeast Minnesota planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s third quarter. Results of this survey indicate that about 2.7 percent of new filers come from communities of color; 7.6 percent from veterans; about 1.5 percent from the disability community; and less than one percent from the immigrant community. Forty-three percent of new business filings in Northeast Minnesota were initiated by women.

Employment was 2.7 percent higher than year ago levels in September. The regional unemployment rate was 3.8 percent, considerably lower than one year ago.

Northwest
Northwest Minnesota’s economy is expected to experience somewhat slower growth over the next several months, according to a variety of economic indicators. The Northwest Minnesota LEI fell by 1.31 points in the third quarter, as three of the five components of the leading index decreased.

There were 983 new business filings with the Office of the Minnesota Secretary of State in Northwest Minnesota in the third quarter of 2017 — representing a 1 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 third quarter. Results of this survey indicate that about 3.9 percent of new filers come from communities of color; 7 percent from veterans; about 1.3 percent from the disability community; and less than one percent from the immigrant community. Thirty-eight percent of new business filings in Northwest Minnesota were initiated by women.

Employment increased by 3.5 percent over the year ending September 2017. The regional unemployment rate was 3 percent in September, which was considerably lower than the 3.8 percent rate observed one year ago.

Southeast
Southeast Minnesota’s economy is expected to see positive growth over the next several months, according to a variety of economic indicators. While the Southeast Minnesota LEI fell by 8.11 points in the third quarter of 2017, strong economic fundamentals are expected to continue to drive positive economic performance.

There were 792 new business filings with the Office of the Minnesota Secretary of State in Southeast Minnesota in the third quarter — representing a 3.5 percent decrease 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 third quarter. Results of this survey indicate that 6.3 percent of new filers come from communities of color; 7.1 percent from veterans; three percent of new filers come from the disability community; and 4.2 percent from the immigrant community. Forty-six percent of new business filings in Southeast Minnesota were initiated by women.

Employment increased by 2.2 percent over the year ending September 2017. The regional unemployment rate was 2.6 percent in September, lower than the 3.2 percent level recorded in the year earlier period.

Southwest
Southwest Minnesota’s economy is expected to see steady economic growth over the next several months, according to a variety of economic indicators. The Southwest Minnesota LEI increased by 4.64 points in the third quarter (and falling by a revised 4.82 points in the second quarter). Two of the four LEI components were positive in the third quarter.

There were 556 new business filings with the Office of the Minnesota Secretary of State in Southwest Minnesota in the third quarter — representing 2.2 percent more new filings than one year ago.

Fifty-five percent of new business filers in the Southwest Minnesota planning area completed the voluntary Minnesota Business Snapshot (MBS) survey in this year’s third quarter. Results of this voluntary survey indicate that 1.6 percent of new filers come from communities of color; about 4.9 percent from veterans; about 1.3 percent from the disability community; and about 2.6 percent from the immigrant community. Forty percent of new business filings in Southwest Minnesota were initiated by women.

Employment increased by 2.1 percent over the year ending September 2017. The regional unemployment rate was 2.9 percent in September, a decrease from its 3.5 percent reading in September 2016.

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