St. Cloud Economy Stuck In Neutral, Recession Not Yet Here

A recession is not imminent.  That according to St. Cloud State Economist King Banaian, who joined me on WJON.  Banaian says there is very little growth in the economy but he doesn't see a recession yet.  He indicated that St. Cloud had positive growth in June, which was the first time in 2026.  Banaian explains that when the July numbers came back, "we went back to negative".

Recession?

Banaian was optimistic that the 2nd quarter would perform better but that hasn't happened.  He felt months ago we'd already be in a recession.  Banaian says "I'd characterize the St. Cloud economy right now as flat, not growing, not a recession".  Banaian says they are currently working on their quarterly business report so he will know more when they receive feedback from local business owners.  He expects that information to be out by the end of September.

Unemployment Rate

The local unemployment rate remains flat around 4%.  Banaian says there is not a lot of new labor coming into the St. Cloud area but there have also been very few layoffs.  He says international migration has slowed.

Local Industry Status

Banaian believes manufacturing is doing well locally, construction is struggling both commercially and with residential builds.  He says these declines have been long term slow declines.   Banaian says retail says appear flat, restaurants are flat to slightly down

If you'd like to listen to my conversation with King Banaian, click below.