Business service firms in Minnesota expect growing profits and revenues over the next year, according to a survey by Minnesota’s Department of Employment and Economic Development, along with the Federal Reserve Bank of Minneapolis.
Some job gains are also predicted in the survey, which was conducted in April and May.
The random survey of 246 professional business services firms found that 48 percent of respondents expect increases in revenue, and 40 percent expect increases in profits next year. About one-third expect revenue and profits to remain the same.
“Business services firms are important indicators of business conditions and trends, and in Minnesota we’re seeing signs of recovery in revenue and productivity,” said DEED Commissioner Mark Phillips. “While business services firms anticipate more merger activity, they’re also optimistic that a stronger economic recovery is in the picture for 2013.”
Some job gains are expected in professional business services. Twenty-three percent of survey respondents expect to increase employment during the next year compared with 8 percent that may cut jobs, and 58 percent indicated they expect to increase wage levels. Nearly 65 percent of business services respondents expect increasing inflation, and nearly 40 percent indicated they expect an increase in mergers and acquisitions.
They say the survey has a margin error of plus or minus 6.2 percent at a 95 percent confidence level.