Welcome!

News Feed Item

BMO Blue Book: Growth in Ontario Expected to Accelerate on Weakened Canadian Dollar and Stronger U.S. Demand

- Ontario's housing market continues to hold up well with a balanced resale market

TORONTO, ONTARIO -- (Marketwired) -- 05/07/14 -- Economic growth is expected to pick up in Ontario, receiving a boost from a stronger U.S. demand and a weaker Canadian dollar, according to the BMO Blue Book released today by BMO Capital Markets Economics and BMO Commercial Banking.

Much like the U.S. Federal Reserve's Beige Book, the BMO Blue Book combines the expertise of BMO's economists with information on current business conditions provided to BMO's commercial bankers by local businesspeople.

"Real GDP is expected to expand 2.2 per cent this year, up from 1.2 per cent in 2013, and pick up further to 2.4 per cent in 2014," said Robert Kavcic, Senior Economist, BMO Capital Markets. "While the cyclical environment is improving for Ontario exporters and manufacturers, the longer-term story remains a cautious one."

Manufacturing - a key industry in Western Ontario - has benefited from the lower Canadian dollar and the stronger U.S. economy, after a number of difficult years. Susan Brown, Senior Vice President, South Western Ontario Division, BMO Bank of Montreal states, "Interestingly, our manufacturing customers have told us they can cope with whatever price the currency happens to be - what causes them the most difficulty is the pace of change."

"Our customers in Eastern Ontario continue to take advantage of major opportunities, leading to a good degree of optimism," Sandra Henderson, Senior Vice President, Eastern Ontario Division, BMO Bank of Montreal. "Across the region, our customers have told us that investments in municipalities, universities, schools and hospitals continue, with capital spending in major centres like Ottawa and Kingston. Trades, along with construction and engineering firms, have benefited significantly as a result."

The report also found that the housing market continues to hold up well - especially in Toronto - where the resale market remains balanced and valuations are within historical ranges.

Mr. Kavcic noted that Ontario's labour market performance has softened, with employment up a modest 0.7 per cent year-over-year in the first quarter of 2014. "While public-sector employment has fallen in the past year, the private sector has picked up the slack."

Eastern Ontario

Victor Pellegrino, Regional Vice President, Commercial Banking, Eastern Ontario Division, BMO Bank of Montreal reports that the Greater Kingston and Quinte regions have a history of financial stability and sees steady commercial growth at a moderate pace. Kingston benefits from the high concentration of hospitals, universities, colleges and federal institutions; as well as being a popular tourist destination.

Mr. Pellegrino added, "After a long period of consolidation, we are seeing an uptick in activity across the Ottawa region as technology companies take advantage of opportunities created by the recovering Canadian and U.S. economies."

Western Ontario

Rick Jaques, Regional Vice President, Commercial Banking, Southwestern Ontario reports that the high-tech sector in Kitchener-Waterloo bears watching, especially given the situation at BlackBerry. "The good news is while there's unease, the business climate hasn't been seriously affected. Most people within the region are finding alternative employment, with other high-tech companies now able to access freed-up resources."

Looking at the agricultural industry, David Blyth, Regional Vice President, Commercial Banking, South Western Ontario, BMO Bank of Montreal observed that the greenhouse industry in the Leamington area was performing better last year, year-over-year compared to 2012 - a year when declining tomato prices negatively impacted farmers' income statements. "Although the past winter was one of the coldest on record, our customers fortunately came off a much better year in 2013 and we are able to assist them when needed."

Mr. Blyth also noted that the Heinz plant closure has caused a significant ripple effect in the market; however the recent announcement of re-purposing of plant and the potential to save 400 jobs has helped calm the marketplace.

The Greater Toronto Area

Bill Wu, Regional Vice President, Commercial Banking, GTA North, BMO Bank of Montreal, noted that the Greater Toronto Area remains a healthy market with lots of activity among the bank's diverse set of customers. "Business owners and operators have a healthy amount of optimism about the next six months, although their enthusiasm is tempered by caution for the longer term."

Construction related to the 2015 Pan American Games, both in terms of venues and corresponding infrastructure, continues to grow across the region. Doug Palmer, Regional Vice President, Commercial Banking, GTA Central, BMO Bank of Montreal said, "Combined with other infrastructure builds such as hospitals, court house rebuilds and schools, the ongoing supply of major projects represents good news for local contractors."

Mr. Palmer added that BMO is armed with a highly-skilled team of experts that can make lending decisions at the local level to help its commercial clients boost productivity, expand into new markets and make strategic investment decisions that will help propel growth and drive success.

The full BMO Blue Book can be downloaded at www.bmocm.com/economics.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified financial services organization based in North America. The bank offers a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers. BMO Financial Group had total assets of $593 billion and more than 45,500 employees at January 31, 2014.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...