Wisconsin Economy Continues Moderate Expansion With Recovery in Manufacturing and Exports - BMO Economics
- Business Sector Firmly in Expansion Territory
- Agriculture Output Holding Firm
- Housing Market Relatively Healthy
MILWAUKEE, Nov. 17, 2011 /PRNewswire/ -- The Wisconsin economy is expanding at a moderate pace, as manufacturing continues to grind out a modest recovery, while agriculture output is on pace for another solid year, 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, exports have performed well so far in 2011, up 15 percent year-over-year through August.
"Our commercial customers continue to express optimism in the strength and resiliency of Wisconsin's economy," said Jeff Ticknor, Managing Director and Head of Commercial Banking, Wisconsin, BMO Harris Bank. "We are providing an unparalleled combination of sector expertise, local knowledge and mid-market focus to assist our customers with solutions to help them invest and upgrade their businesses."
While the housing market remains weak, with prices down 3.5 percent year-over-year in second quarter, it continues to see much more modest declines than in other parts of the country—prices have dropped a relatively tame 9.6 percent from peak levels. The foreclosure rate was 3.6 percent in second quarter, below the national rate of 4.4 percent and holding steady in the past year, while new foreclosures have started to ease.
"Wisconsin's diverse economy weathered the recession relatively well," said Robert Kavcic, Economist, BMO Capital Markets. "Although job growth has slowed in recent months, the state sports a below-average jobless rate with manufacturing regaining almost half of the jobs lost since the start of the recession, and growth in education and other services remains firm."
Additionally, agriculture is holding firm with 73 percent of corn silage harvested through early October, just slightly below the 5-year average. While mild production is running slightly below year-ago levels through August, higher prices have boosted incomes.
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 at 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. BMO Harris Bank(SM) is a trade name used by BMO Harris Bank N.A. Member FDIC.
SOURCE BMO Financial Group
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