Welcome!

News Feed Item

Twin Cities Showing Sturdy Growth: BMO Economics Special Report

MINNEAPOLIS/ST. PAUL, MN -- (Marketwired) -- 06/23/14 --


  • Minnesota economy growing at a firm pace, well ahead of the national average
  • GDP growth is expected to remain healthy at 2.5 percent in 2014
  • The Twin Cities show solid growth thanks to a variety of service industries
  • Jobs lost during the recession now recovered

The Minnesota economy continues to grow at a firm pace and growth is expected to remain healthy at 2.5 percent in 2014, according to a Special Economic Close-up Report on Minnesota issued today by BMO Economics. Real GDP in the state grew 2.8 percent in 2013, well ahead of the national average. Manufacturing output rebounded after a soft patch in 2012, while trade, finance and professional services all posted solid growth.

In the twin Cities (Minneapolis-St. Paul-Bloomington), the sturdy and diverse economy is expected to remain on a solid growth track in the years ahead, according to the report. A cyclical upturn in manufacturing and exports will help, as will a continued recovery in the housing market. Beyond that, the bigger picture is that the area boasts exposure to a wide swath of service industries which continue to churn out steady job growth.

"Our state and metro area have a lot going for them with our job growth, diversity of industries and the confidence businesses have shown by investing in their operations and people," said Todd Senger, Minnesota Regional President, BMO Harris Bank. "This report confirms the positive outlook we have seen among businesses and business owners in the last few months, and we fully expect to see the upturn continue as more and more businesses feel the effects of the growth in our area."

Job growth is an important positive indicator in the Twin Cities, averaging a 1.4 percent year over year pace through the first 4 months of 2014, just slightly below the national rate; all the jobs lost during the recession have now been recovered. At 4.5 percent, the unemployment rate remains well below the national average, and has fallen 0.5 percentage points in the past year. Private-service industries are posting the strongest job growth in the region with finance, professional and scientific services and leisure/hospitality-related industries leading the way.

"The area includes more Fortune 500 companies per capita than any other major metro region in the United States; this diversity helped soften the downturn, with real GDP falling 3.5 percent peak-to-trough on an annual basis versus 4 percent for all metro areas," said Michael Gregory, Head of U.S. Economics, BMO Capital Markets. "Many Midwest cities, such as Chicago, St. Louis and Indianapolis, are just now seeing real GDP return to pre-recession levels. Contrast that to Minneapolis-St. Paul where GDP was 5.2 percent above the 2008 high according to the latest available city-level data."

While many metro areas are still seeing factory output below pre-recession levels, output in Minneapolis rebounded more than 7 percent per year since bottoming in 2009, and now sits well above the prior peak seen in 2006. As a result, the industrial availability rate has fallen sharply to 6.7 percent by the first quarter of 2014, down more than 5 percentage points from the post-recession high in early 2010 and well below the 11.1 percent national average.

Conditions are also improving within the regional housing market. "The region has a lot going for it in terms of the housing market. Home sales are increasing, the vacancy rate is down to pre-recession levels, and the months' supply of single-family homes on the market averaged only 3.5 percent during the past year," said Mr. Gregory. "However, while the resale market is improving, construction activity remains soft. The number of private housing permits was just under 12,000 in the twelve months through April, down from a 25,000 per year pace in the decade leading up to the recession. On the bright side, this is still twice the level seen between 2009 and 2011." After harsh winter weather weighed on building activity across much of the Midwest early this year, continued steady gains in homebuilding are likely as the housing market recovery continues.

To view a full copy of the report, visit www.bmocm.com/economics.

About BMO Capital Markets

BMO Capital Markets is a leading, full-service North American financial services provider, with more than 2,300 employees operating in 16 North American offices and 29 worldwide, offering corporate, institutional and government clients access to a complete range of investment and corporate banking products and services. BMO Capital Markets is a member of BMO Financial Group (NYSE: BMO) (TSX: BMO), one of the largest diversified financial services providers in North America with US$532 billion total assets and more than 45,500 employees as at January 31, 2014.

About BMO Harris Bank

BMO Harris Bank provides a broad range of personal banking products and solutions through more than 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. For more information about BMO Harris Bank, go to the company fact sheet. Banking products and services are provided by BMO Harris Bank N.A. and are subject to bank or credit approval. BMO Harris ® and BMO Harris Bank® are trade names used by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with approximately 1,600 branches, and CDN $582 billion in assets (as of April 30, 2014).

Media contact:

Beth Copeland
[email protected]
317-269-1395

Alexis Brown
[email protected]
312-461-6543

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
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to great conferences, helping you discover new conferences and increase your return on investment.
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...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
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.
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. The IoT Global Network is a platform where you can connect with industry experts and network across the IoT community to build the successful IoT business of the future.
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
When applications are hosted on servers, they produce immense quantities of logging data. Quality engineers should verify that apps are producing log data that is existent, correct, consumable, and complete. Otherwise, apps in production are not easily monitored, have issues that are difficult to detect, and cannot be corrected quickly. Tom Chavez presents the four steps that quality engineers should include in every test plan for apps that produce log output or other machine data. Learn the ste...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Enterprises are universally struggling to understand where the new tools and methodologies of DevOps fit into their organizations, and are universally making the same mistakes. These mistakes are not unavoidable, and in fact, avoiding them gifts an organization with sustained competitive advantage, just like it did for Japanese Manufacturing Post WWII.
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. 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.
Machine learning provides predictive models which a business can apply in countless ways to better understand its customers and operations. Since machine learning was first developed with flat, tabular data in mind, it is still not widely understood: when does it make sense to use graph databases and machine learning in combination? This talk tackles the question from two ends: classifying predictive analytics methods and assessing graph database attributes. It also examines the ongoing lifecycl...