News Releases

Illinois Economy Continues to Expand at Moderate Pace—BMO Economics

• Manufacturing and exports seeing growth
• Business Sector remains firmly in expansion territory

CHICAGO, November 17, 2011 — The Illinois economy continues to expand at a moderate pace, supported in part by growth in manufacturing and exports, according to the State Monitor report released today by BMO Capital Markets Economics.

The Business sector remains firmly in expansion territory. Helped by a weak U.S. dollar and firm global demand, exports are up more than 30 percent year-over-year in second quarter; and manufacturing is firm, though losing some momentum in recent months. Although still well-above pre-recession levels, bankruptcies are trending lower, with higher corporate taxes causing concern with some companies.

“Our commercial customers in Illinois are resilient, and they are showing optimism about their business prospects,” said Dave Casper, Executive Vice President and Head of Commercial Banking, BMO Harris Bank. “We stand ready to assist our customers, and prospective customers, through a combination of sector expertise, local knowledge and mid-market focus.”

Job growth in Illinois has become sluggish in recent months, with nonfarm payrolls 0.8 percent above a year-ago levels in September, but still below the national rate. However, manufacturing jobs are up a firm 2 percent year-over-year, with companies like Deere and Caterpillar benefiting from solid exports. Recent government-sector layoffs continue to challenge employment numbers.

“The Illinois housing market continues to struggle with numbers still above the national average, but several indicators are moving in a positive downward trend,” said Robert Kavcic, Economist, BMO Capital Markets. “New home foreclosures are easing; industrial and office availability rates continue to trend down, as well as the months’ supply of existing homes available for sale down almost 10 percent from late 2009.”

Dr. Sherry Cooper, Executive Vice-President and Chief Economist, BMO Financial Group presented today an in-depth discussion of the economic and financial outlook for the U.S. and Canada at the Canada-U.S. Business Council meeting in Chicago.

The full State Monitor report can be downloaded at bmocm.com/economics.

About BMO Harris Bank
Based in Chicago, BMO Harris Bank has approximately 700 branches and approximately 1,350 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Arizona and Florida. Member FDIC. BMO Harris Bank is part of BMO Financial Group, a North American financial institution with 1,600 branches, a retail deposit base of approximately $180 billion.

BMO Harris Bank is a trade name used by BMO Harris Bank N.A. Banking deposit and loan products and services are provided by BMO Harris Bank N.A. Member FDIC. Brokerage products are offered through Harris Investor Services, Inc. (HIS), a registered broker/dealer, member FINRA/SIPC, and SEC-registered investment advisor. Insurance products are offered through Harris Bancorp Insurance Services, Inc. (HBIS). Investment banking services are provided by BMO Capital Markets Corp. (BMOCMC) and BMO Capital Markets GKST, Inc. (GKST), a Municipal Bond Dealer and member FINRA and SIPC. Financial planning and investment advisory services are provided by Sullivan, Bruyette, Speros & Blayney, Inc. (Harris SBSB), an SEC registered investment advisor. Family Office Services are provided by Harris myCFO, Inc. Investment advisory services are offered by Harris myCFO Investment Advisory Services LLC (Harris myCFO), an SEC-registered investment advisor and wholly-owned subsidiary of Harris myCFO, Inc. Stoker Ostler Wealth Advisors (Stoker Ostler) is an SEC-registered investment advisor. Investment advisory services to institutional clients are provided by Harris Investment Management (HIM) or its wholly-owned subsidiary HIM Monegy (Monegy), SEC-registered investment advisors. Products offered by HIS, HBIS, BMOCM, Harris SBSB, Harris myCFO, Stoker Ostler, HIM, and Monegy, which are affiliated companies and wholly owned subsidiaries of BMO Financial Corp.,:Are not insured by the FDIC or any Federal Government Agency, not a deposit of or guaranteed by any Bank or Bank Affiliate, may lose value. The purchase of insurance or an annuity is not a condition to any bank loan or service. Not all products and services are offered in every state and/or location.