News Releases

Missouri Growing At A Modest Pace

• Labor market in relatively healthy shape
• Growing conditions expected to improve
• Auto sector investment continues

ST. LOUIS, (March 5, 2013) – According to the State Monitor Report released today by BMO Capital Markets Economics, the Missouri economy struggled last year as the worst drought in half a century weighed on the farm sector. More normal conditions this year are expected to lift farm income, and continued investment in the auto sector should help drive a pickup of real GDP growth to 1.7 percent, before improving further to 2.1 percent in 2014.

Job growth has picked up in Missouri in recent months, with nonfarm payrolls up 1.5 percent year-over-year in December, the strongest pace since mid-2006. Strong job growth has pulled the unemployment rate down a hefty 1.5 points in the past year, to a well-below-average 6.7 percent.

“We are seeing more and more customers expanding and investigating opportunities to grow as we see the economy ease up,” said Dave Warning, Executive Vice President, Commercial Banking for BMO Harris Bank. “With our local expertise, sector knowledge and mid-market focus we are ready to help with solutions as they invest and upgrade their businesses."

Growing conditions are expected to improve after the drought of 2012. “The worst drought in half a century crippled the agriculture sector in 2012,” said Doug Porter, Chief Economist, BMO Financial Group. “Kansas City saw the driest three-month period since 1911 and in mid-February, about 77 percent of the state remained abnormally dry; however, a rebound in crop output is expected.”

In the auto sector, Ford is investing $1 billion to expand its assembly plant in Kansas City and GM is investing $600 million over the next two years at their Fairfax plant.

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.