During the past year, Minnesota’s economy has largely outperformed most of the United States. A recent survey finds Minnesota firms that provide business services are even more optimistic about next year.
The survey is just another indication that Minnesota employers believe our economy is headed in the right direction. Increased business confidence means new hiring and more investments – fueling further economic growth. In the future, Minnesotans can expect new and better job opportunities.
Here are some key findings from the Minneapolis Federal Reserve and Minnesota Department of Employment and Economic Development survey:
77 percent of Minnesota firms anticipate their sales revenue to grow or remain stable in the coming year.
75 percent of business services firms expect their profits to increase or remain stable in the next four quarters, compared with 62 percent last year.
53 percent of firms plan to increase the wages of employees during the next four quarters.
50 percent said their costs remained steady during the past year.
44 percent of firms expect employment to increase during the next year compared with only 36 percent last year.
Despite the continued improvement of our economy, Governor Mark Dayton is still looking for ways to improve our economy. One way the Governor has worked to help Minnesota businesses grow is by reforming our state’s tax code.
In the recent legislative session, Governor Dayton and the DFL legislature exempted capital equipment purchases from sales taxes. Under the previous law, when businesses invested in new capital equipment, they paid the sales tax and then filled out paperwork to receive a refund later.
Starting in 2016, businesses will receive an upfront sales tax exemption on these purchases. This will provide simplicity for businesses, support additional business growth, and help create new jobs!
Renewed business optimism and new efforts to help Minnesota companies become more competitive should allow our economy continue growing.