Hamilton's economy expected to grow 2.5 per cent in 2014: report

Hamilton's economy is forecast to grow by 2.5 per cent this year, according to the Conference Board of Canada's metropolitan outlook for winter 2014, which was released Wednesday.

That's an improvement over the 0.7 per cent increase seen in 2013. "This year, economic growth will be driven by renewed demand in the manufacturing sector as well as stronger services sector growth," the report reads. "Stronger activity in those areas of the economy will more than make up for modest growth in the construction sector."

Manufacturing activity is expected to bounce back this year, thanks to stronger economic growth stateside and a slightly weaker Canadian dollar. The conference board expects manufacturing output to rise by 3.7 per cent in 2014 and by 1.7 per cent next year.

"The sector will get a lift from the opening of Maple Leaf's new $395-million processing plant, which will employ 670 people," the report reads.

But not everything in manufacturing has been rosy for the city in recent months. In October of last year, U.S. Steel announced the permanent closure of its idle iron and steel-making operations in Hamilton. Earlier this month, the company started laying off 175 non-union workers between its Hamilton and Lake Erie operations.

But the Conference Board is still expecting an uplift in manufacturing that will spill over into transportation and warehousing, as output is expected to climb by 2.8 per cent, according to the report. Employment is also expected to rise by 1.8 per cent after falling 1.1 per cent last year. That should improve consumer confidence and help boost wholesale and retail trade output by 2.5 per cent, the report reads. "While a certain amount of fiscal restraint still exists, the region is expected to see some growth in the public administration sector, with output forecast to expand 0.8 per cent in 2014. All told, services sector output is expected to increase 2.4 per cent in 2014."

On the housing front, total housing starts in Hamilton slipped 3.8 per cent last year, and that's forecasted to fall another 6 per cent this year. "With starts falling, and some non-residential projects finishing, growth in total construction output is forecast to come in at a very modest 0.5 per cent this year, before improving to 2.6 per cent next year," the report reads.

You can read the entire metropolitan outlook for Hamilton (on page 52) and the rest of Canada's major centres below:

5953 MOBook1 Winter2014 for Posting Approval (PDF)
5953 MOBook1 Winter2014 for Posting Approval (Text)

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