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
SUSE is a German-based, multinational, open-source software company that develops and sells Linux products to business customers. Founded in 1992, it was the first company to market Linux for the enterprise. Founded in 1992, SUSE is the world’s first provider of an Enterprise Linux distribution. Today, thousands of businesses worldwide rely on SUSE for their mission-critical computing and IT management needs.
The dream is universal: heuristic driven, global business operations without interruption so that nobody has to wake up at 4am to solve a problem. Building upon Nutanix Acropolis software defined storage, virtualization, and networking platform, Mark will demonstrate business lifecycle automation with freedom of choice and consumption models. Hybrid cloud applications and operations are controllable by the Nutanix Prism control plane with Calm automation, which can weave together the following: ...
Crosscode Panoptics Automated Enterprise Architecture Software. Application Discovery and Dependency Mapping. Automatically generate a powerful enterprise-wide map of your organization's IT assets down to the code level. Enterprise Impact Assessment. Automatically analyze the impact, to every asset in the enterprise down to the code level. Automated IT Governance Software. Create rules and alerts based on code level insights, including security issues, to automate governance. Enterpr...
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...
Cloud is the motor for innovation and digital transformation. CIOs will run 25% of total application workloads in the cloud by the end of 2018, based on recent Morgan Stanley report. Having the right enterprise cloud strategy in place, often in a multi cloud environment, also helps companies become a more intelligent business. Companies that master this path have something in common: they create a culture of continuous innovation.
Eric Taylor, a former hacker, reveals what he's learned about cybersecurity. Taylor's life as a hacker began when he was just 12 years old and playing video games at home. Russian hackers are notorious for their hacking skills, but one American says he hacked a Russian cyber gang at just 15 years old. The government eventually caught up with Taylor and he pleaded guilty to posting the personal information on the internet, among other charges. Eric Taylor, who went by the nickname Cosmo...
DevOpsSUMMIT at CloudEXPO, to be held June 25-26, 2019 at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
The benefits of automated cloud deployments for speed, reliability and security are undeniable. The cornerstone of this approach, immutable deployment, promotes the idea of continuously rolling safe, stable images instead of trying to keep up with managing a fixed pool of virtual or physical machines. In this talk, we'll explore the immutable infrastructure pattern and how to use continuous deployment and continuous integration (CI/CD) process to build and manage server images for any platfo...
Automation is turning manual or repetitive IT tasks into a thing of the past-including in the datacenter. Nutanix not only provides a world-class user interface, but also a comprehensive set of APIs to allow the automation of provisioning, data collection, and other tasks. In this session, you'll explore Nutanix APIs-from provisioning to other Day 0, Day 1 operations. Come learn about how you can easily leverage Nutanix APIs for orchestration and automation of infrastructure, VMs, networking, an...
Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throughout enterprises of all sizes. We are offering early bird savings...
It cannot be overseen or regulated by any one administrator, like a government or bank. Currently, there is no government regulation on them which also means there is no government safeguards over them. Although many are looking at Bitcoin to put money into, it would be wise to proceed with caution. Regular central banks are watching it and deciding whether or not to make them illegal (Criminalize them) and therefore make them worthless and eliminate them as competition. ICOs (Initial Coin Offer...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Organize your corporate travel faster, at lower cost. Hotailors is a next-gen AI-powered travel platform. What is Hotailors? Hotailors is a platform for organising business travels that grants access to the best real-time offers from 2.000.000+ hotels and 700+ airlines in the whole world. Thanks to our solution you can plan, book & expense business trips in less than 5 minutes. Accordingly to your travel policy, budget limits and cashless for your employees. With our reporting, int...
The current environment of Continuous Disruption requires companies to transform how they work and how they engineer their products. Transformations are notoriously hard to execute, yet many companies have succeeded. What can we learn from them? Can we produce a blueprint for a transformation? This presentation will cover several distinct approaches that companies take to achieve transformation. Each approach utilizes different levers and comes with its own advantages, tradeoffs, costs, risks, a...
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.