News Releases

BMO Economics: Minnesota Economy Growing At A Modest Pace

• Healthy labor market
• Manufacturing and export growth moderating
• Industrial availability rate falling

MINNEAPOLIS/ST. PAUL (March 5, 2013) – The Minnesota economy continues to grow at a modest pace, according to the State Monitor Report released today by BMO Capital Markets Economics. Real GDP is expected to expand 2.4 percent this year, slightly ahead of the national average, and then pick up to a firmer 3.2 percent pace in 2014.

The post-recession employment performance has been stellar in Minnesota, with almost three-quarters of the job losses now recovered. The unemployment rate also continues to fall, and at 5.5 percent, remains well below the 7.9 percent national average, helping drive above-average 2.2 percent year-over-year earnings growth in the last quarter of 2012.

“Our customers continue to express optimism and confidence in the state’s economic resiliency,” said Todd Senger, Commercial Banking Managing Director for Minneapolis, BMO Harris Bank. “These metrics bear out what we are hearing in this market anecdotally from the business community. With our local expertise, sector knowledge and mid-market focus we are helping our customers find solutions as they invest and upgrade their businesses."

Housing activity is still depressed, but positive price momentum has emerged amid reduced supply. Residential construction also gained momentum last year and housing starts look to advantage again in 2013.

Said Doug Porter, Chief Economist, BMO Financial Group, “Federal spending on procurement, salaries and wages makes up a well below-average 1.8 percent of GDP versus 5.3 p ercent nationally, implying a less severe impact from the sequestration.”

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.