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Wisconsin economy to flourish in 2014

Market Conditions  \  February 6, 2014 09:01 pm

Wisconsin economy to flourish in 2014

"This positive economic forecast is a reflection of the strength of Wisconsin-based businesses located throughout the state, as well as the confidence that business owners have in the prospects for their own individual businesses," said Jeff Ticknor, managing director and head of commercial banking for Wisconsin at BMO Harris Bank.

The real gross domestic product in the state is expected to jump 2.3 percent this year - nearly double that of 2013's expected increase of 1.2 percent from the year prior. Exports and factory activity are expected to drive much of the growth.

"Exports cooled down in the past year - mostly attributable to a slowdown in machinery shipments - but that is expected to change," said Robert Kavcic, senior economist of BMO Capital Markets. "Stronger global growth this year will help support exports, and factory activity too is on the rise. The Milwaukee PMI has risen steadily since mid-2013." 

Employment  also jumped 1.6 percent on a year-over-year basis in December, so more residents are experiencing increased financial security. Recovery in any part of the economy typically leads to more purchases of homes and other goods.

In 2013, Wisconsin OK'd personal income tax cuts, so residents will likely have more money in their bank account to fund a purchase. The housing market is already faring pretty well, as it wasn't as affected by the crash as other states. Housing prices in the Cheese State during the downturn fell 10 percent from their peak, while nationally, they fell 18 percent on average.

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