EDSR INFORMATION #5 08-13-2012 - Laserfiche WebLink

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Continued productivity growth is expected by spending, suggesting they are all expected to almost one-half of manufacturers. While 41 expand. However, manufacturers' optimism is percent expect profits to rise, 42 percent expect slightly more subdued for the state economy than them to be flat. One respondent cautioned, for their own business. "Prices are very competitive and it's tough to Outlook on State Economic Indicators for 2012 break even on projects."About one-third will 70% increase investment in plant and equipment but 60% ■Up 13 Same °Down about one-half will maintain current levels. 50% 40% -- it Outlook on the State Economy , �t 30% —;-:7&,. t .. 4_ , Manufacturers in Minnesota are also somewhat ,—- ¢_ - optimistic about growth in the state economy over a _ the next year State diffusion indices in 2012 are 0% above 50 for business investment, employment, Business Employment Consumer Inflation Economic Corporate investment spending growth profits economic growth, corporate profits and consumer 2011 Minnesota Manufacturing Business Conditions Survey Results Diffusion Diffusion Compared to 2010,in 2011 your location's: Up Same Down Index*,2011 Index*,2010 Number of orders 56% 19% 26% 65 64 Product/service production level 50% 31% 19% 66 65 Employment level_ 35% 46% 19% 58 56 Investment in plant/equipment 34% 41% 25% 54 52 Prices 36% 49% 14% 61 50 Profits 30% 31% 40% 45 50 Productivity 47% 41% 12% 68 66 Exports 50% 39% 11% 70 56 Decrease 0% 1-2% 3-5% 6-9% >10% Wages per worker 3% 37% 30% 25% 2% 3% Benefits per worker 9% 45% 16% 20% 5% 4% Compared to 2011,during 2012 you expect Diffusion Diffusion your location's: Up Same Down Index*,2011 Index*,2010 Number of orders 53% 35% 11% 71 71 Product/service production level 48% 43% 9% 70 72 Employment level 30% 62% 8% 61 63 Investment in plant/equipment 34% 48% 18% 58 58 Prices 40% 53% 7% 67 62 Profits 41% 42% 17% 62 59 Productivity 47% 46% 7% 70 71 Exports 44% 47% 9% 68 61 Decrease 0% 1-2% 3-5% 6-9% >10% Wages per worker 2% 30% 39% 28% 0% 1% Benefits per worker 5% 46% 28% 13% 6% 2% What is your outlook on the following state Diffusion Diffusion economic indicators during the next year? Up Same Down Index*,2011 Index*,2010 Business investment 23% 55% 22% 51 52 Employment 30% 54% 16% 57 60 Consumer spending 28% 47% 25% 52 55 Inflation 66% 31% 3% 82 78 Economic growth 27% 45% 28% 49 57 Corporate profits 32% 42% 25% 54 53 Improved Improved Not Has your company's access to bank credit Yes a lot Yes some No chap le some a lot a'i licable deteriorated over the past three months? 6% 4% 12% 56% 6% 15% In what areas,if any,has the change in Capital Inventory access to bank credit affected your firm's Hiring Expenditures Expansion Levels future plans?Check all that apply. 18% 40% 28% 21% *A diffusion index greater than 50 indicates expansion,less than 50 indicates contraction. Notes:Based on responses from 191 Minnesota manufacturing businesses,for a response rate of19.1 percent. The sampling error is plus or minus 7.04 percentage points at the 95 percent confidence level. Percentages may not add to 100 percent due to rounding. Prepared by Analysis and Evaluation,Minnesota Department of Employment and Economic Development,December 2011.