News Releases

Arizona Economy Is In Recovery Mode-BMO Economics

• Broad-based Job Growth
• Unemployment Rate Falls to National Average
• Housing Fundamentals Continue to Improve

PHOENIX, (March 5, 2013) – The Arizona economic recovery is continuing, with home prices on the rise, population growth turning up and construction activity firming. Real GDP is expected to grow an above-average 2.9 percent this year, extending into 2014 as both housing and population growth continues to rebound according to the State Monitor Report by BMO Capital Markets Economics.

Manufacturing, trade, finance and tourism-related sectors all contributed to broad-based job growth in the past year. The state is well ahead of the 1.6 percent y/y national pace for job growth, with nonfarm payrolls up 2.7 percent y/y in December. The unemployment rate has recently dropped below 8 percent, which puts it in-line with the national average. That said, underutilization remains a bit high with a large numbers of workers who are only marginally attached to the labor force or looking for additional hours. A continued housing recovery will certainly help the labor market.

“We continue to see a significant increase in the number of people inquiring about a mortgage compared to 2012,” said Jerry Bevers, BMO Harris Bank, S enior Vice President, Mortgage Market Manager. “Additionally, our application volume is up 35 percent year over year.”

Arizona’s housing market is now seeing some of the nation’s strongest recoveries. Prices in Phoenix are up more than 25 percent from their lows according to the S&P Case-Shiller Index. The months’ supply of homes readily available has seen a significant drawdown, to just 2.3 in Q2. As a result, homebuilding has picked up to more than twice the low in 2010, but is still far below the 2005 peak.

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.