News Releases

BMO Economics: Indiana Economic Growth Solid

• Employment growth sturdy
• Labor market healthy
• Auto sector supporting factory sector

INDIANAPOLIS, (March 5, 2013) – Economic growth remains solid in Indiana as the auto-sector continues to perform well, job growth is sturdy and government finances are in relatively good shape, according to the State Monitor Report released today by BMO Capital Markets Economics.

Employment continues to expand at a solid clip, up 2 percent year-over-year in December, outpacing the national gain. The jobless rate, however, has remained stuck above 8 percent since mid-2012, but earnings growth in the private sector was up a solid 3.2 percent year-over-year in the fourth quarter of 2012. Indiana’s labor market is in relatively good shape, ranking comfortably above average on a wide range of metrics.

“With the steady growth in our economy, more and more customers are looking for opportunities to grow,” said Tim Massey, Indiana Regional President for BMO Harris Bank. “Our knowledge of the local market coupled with national industry expertise puts us in an excellent position to assist our customers as they plan for the future.”

The housing market remains soft in Indiana, but home prices appear to have stabilized and were flat year-over-year in the fourth quarter of 2012. The foreclosure rate was still elevated at 4.5 percent in the third quarter of last year, but has begun to edge down in recent quarters.

“In the fourth quarter of last year, U.S. auto sales rose to the best l evel in almost 5 years,” said Doug Porter, Chief Economist, BMO Financial Group. “This helped spur a strong gain in auto production supporting Indiana’s industrial base. Recent moves by Honda and Toyota to boost output in the state are also encouraging.”

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

About BMO Harris Bank
Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, 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. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank^SM is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.