Business Services firms expect continued economic recovery
July 12, 2021
St. Paul – Minnesota business services firms expect continued recovery from the pandemic recession during the next four quarters, with 55% of respondents expecting increase in consumer spending and 46% anticipating growth in employment. Those are the results released today from a joint survey conducted in May and June of this year by the Minnesota Department of Employment and Economic Development (DEED) and the Federal Reserve Bank of Minneapolis.
Surveying business services firms – such as engineers, accountants and architects –offers a compelling glimpse into economic conditions because these businesses provide their services to other businesses across the full range of industries in the economy. This year, 201 Minnesota business services firms responded to the survey. Most of those business services firms surveyed expect unchanged or improving conditions for the coming year.
Areas of concern among survey respondents include inflation and labor availability. Nearly 75% of respondents believe there will be an increase in inflation and 96% expected unchanged or decreased labor availability over the coming year.
