The rating on Minnesota's bonds reflects: * A deep, steadily growing economy that is diversified among services, trade, and manufacturing; * Strong financial management systems with significant financial reserves; and * A moderate debt burden with manageable future capital needs. While some concentration exists in the manufacturing base, Minnesota's economic diversity enables the state to perform well during economic cycles compared with the U.S. Employment and income data indicate steady job creation since late 1994 with most of the growth occurring in the Twin Cities area. The service sector—particularly business and health care services—and the construction sector have performed particularly well. While demand for labor is still strong, falling export demand, particularly to Asia, has affected the agriculture and manufacturing
