Missouri Grows at a Moderate Pace - BMO Economics
- Strong Export Growth, Led By Agriculture
- Slow Growth in Diverse Labour Market
- Housing Market Relatively Healthy
ST. LOUIS, Nov. 17, 2011 /PRNewswire/ -- The Missouri economy continues to grow at a moderate pace helped by a diverse labour market and relatively mild housing correction, according to the State Monitor report released today by BMO Capital Markets Economics.
Exports performed well, up 13 percent year-over-year through August. Transportation equipment is Missouri's dominant export, up a solid 15 percent year-over-year in the first half of 2011, but agricultural products have seen the strongest growth, up more than 70 percent year-over-year.
"We're clearly seeing signs of upward trending in the market, so it's no surprise that our commercial customers are more optimistic than in the past several years," said Dave Warning, head of commercial operations in St. Louis for M&I, a part of BMO Financial Group. "We stand ready to assist our customers, and prospective customers, through a combination of sector expertise, local knowledge and mid-market focus."
The jobless rate continues to drift down, and at 8.7 percent, sat below the national average in September. In general, the state continues to benefit from a relatively diverse job market.
"Job growth has weakened in recent months with employment flat versus year-ago levels in the third quarter," said Robert Kavcic, Economist, BMO Capital Markets. "Broad weakness in finance, government and other service jobs has offset recent strength in manufacturing with employment in that sector rising more than 4 percent in the past year."
House prices continue to slide in Missouri amid soft demand, but the downturn has been far more subdued than in many regions of the country. Prices were 9.3 percent below peak levels in the second quarter of 2011. In St. Louis, the months' supply of existing homes available for sale sat at 3.0 in the second quarter, well below the national average, and the state foreclosure rate was also relatively low at 0.8 percent for the second quarter. On the commercial side, both industrial and office availability rates remain elevated in St. Louis and Kansas City, and have yet to trend down.
The full State Monitor report can be downloaded at bmocm.com/economics.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $477 billion as of July 31, 2011, and more than 47,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and solutions.
SOURCE BMO Financial Group
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