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
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
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...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
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 smart...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
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...
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...