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.

Contacts:
Media Contacts:
Matt Duffin, Toronto
(416) 867-3996
[email protected]

Russell Baker, Toronto
(416) 867-3996
[email protected]

Internet: www.bmo.com
Twitter: @BMOmedia

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
DXWorldEXPO LLC announced today that Big Data Federation to Exhibit at the 22nd International CloudEXPO, colocated with DevOpsSUMMIT and DXWorldEXPO, November 12-13, 2018 in New York City. Big Data Federation, Inc. develops and applies artificial intelligence to predict financial and economic events that matter. The company uncovers patterns and precise drivers of performance and outcomes with the aid of machine-learning algorithms, big data, and fundamental analysis. Their products are deployed...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
All in Mobile is a place where we continually maximize their impact by fostering understanding, empathy, insights, creativity and joy. They believe that a truly useful and desirable mobile app doesn't need the brightest idea or the most advanced technology. A great product begins with understanding people. It's easy to think that customers will love your app, but can you justify it? They make sure your final app is something that users truly want and need. The only way to do this is by ...
CloudEXPO New York 2018, colocated with DevOpsSUMMIT and DXWorldEXPO New York 2018 will be held November 12-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI and Machine Learning to one location.
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Whenever a new technology hits the high points of hype, everyone starts talking about it like it will solve all their business problems. Blockchain is one of those technologies. According to Gartner's latest report on the hype cycle of emerging technologies, blockchain has just passed the peak of their hype cycle curve. If you read the news articles about it, one would think it has taken over the technology world. No disruptive technology is without its challenges and potential impediments t...
DXWorldEXPO LLC announced today that Nutanix has been named "Platinum Sponsor" of CloudEXPO | DevOpsSUMMIT | DXWorldEXPO New York, which will take place November 12-13, 2018 in New York City. Nutanix makes infrastructure invisible, elevating IT to focus on the applications and services that power their business. The Nutanix Enterprise Cloud Platform blends web-scale engineering and consumer-grade design to natively converge server, storage, virtualization and networking into a resilient, softwar...
ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of computational needs for many industries. Their solutions provide benefits across many environments, such as datacenter deployment, HPC, workstations, storage networks and standalone server installations. ICC has been in business for over 23 years and their phenomenal range of clients include multinational corporations, universities, and small busines...
This sixteen (16) hour course provides an introduction to DevOps, the cultural and professional movement that stresses communication, collaboration, integration and automation in order to improve the flow of work between software developers and IT operations professionals. Improved workflows will result in an improved ability to design, develop, deploy and operate software and services faster.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Having been in the web hosting industry since 2002, dhosting has gained a great deal of experience while working on a wide range of projects. This experience has enabled the company to develop our amazing new product, which they are now excited to present! Among dHosting's greatest achievements, they can include the development of their own hosting panel, the building of their fully redundant server system, and the creation of dhHosting's unique product, Dynamic Edge.
Your job is mostly boring. Many of the IT operations tasks you perform on a day-to-day basis are repetitive and dull. Utilizing automation can improve your work life, automating away the drudgery and embracing the passion for technology that got you started in the first place. In this presentation, I'll talk about what automation is, and how to approach implementing it in the context of IT Operations. Ned will discuss keys to success in the long term and include practical real-world examples. Ge...
The challenges of aggregating data from consumer-oriented devices, such as wearable technologies and smart thermostats, are fairly well-understood. However, there are a new set of challenges for IoT devices that generate megabytes or gigabytes of data per second. Certainly, the infrastructure will have to change, as those volumes of data will likely overwhelm the available bandwidth for aggregating the data into a central repository. Ochandarena discusses a whole new way to think about your next...
Cell networks have the advantage of long-range communications, reaching an estimated 90% of the world. But cell networks such as 2G, 3G and LTE consume lots of power and were designed for connecting people. They are not optimized for low- or battery-powered devices or for IoT applications with infrequently transmitted data. Cell IoT modules that support narrow-band IoT and 4G cell networks will enable cell connectivity, device management, and app enablement for low-power wide-area network IoT. B...