Ontario’s manufacturing, service and tech sectors, will benefit from an upswing in U.S. demand and a falling loonie, says BMO.
“The cyclical environment is improving for Ontario exporters and manufacturers,” says Robert Kavcic, a senior economist at BMO Capital Markets. He adds real GDP is expected to expand 2.2% this year, up from 1.2% in 2013.
After several difficult years, the manufacturing sector is improving, says Susan Brown, BMO’s senior vice president for southwestern Ontario.
And in Eastern Ontario “investments in municipalities, universities, schools and hospitals continue, with capital spending in major centres like Ottawa and Kingston,” says Sandra Henderson, BMO’s eastern Ontario division senior vice president. “Trades, along with construction and engineering firms, have benefited significantly as a result.”
The province’s housing market is strong, but its labour market performance has softened. Employment is up 0.7% year-over-year in Q1 2014.
The high-tech sector in Kitchener-Waterloo has suffered due to BlackBerry layoffs, but hiring at other companies is maintaining regional employment, says Rick Jaques, BMO’s regional vice president of Commercial Banking in southwestern Ontario.
Read: Are we in a tech bubble?
In the meantime, construction for the 2015 Pan American Games, along with other infrastructure projects such as hospitals, courthouse rebuilds and schools, is good news for local contractors, says Doug Palmer, BMO’s regional vice president of commercial banking in the GTA.