BMO Business Outlook: Growth in the Southeast Remains Resilient as Companies Emphasize Selective Execution

BMO Business Outlook: Growth in the Southeast Remains Resilient as Companies Emphasize Selective Execution

• Population growth, infrastructure investment and sector diversification continue to support activity
• Businesses emphasize efficiency, balance‑sheet strength and disciplined capital deployment
• Data centers, logistics, manufacturing and targeted industries remain key tailwinds 

ATLANTA and MIAMI, March 18, 2026 /PRNewswire/ - BMO today released its BMO Business Outlook for the Southeast, showing companies across Florida and Georgia navigating a slower but still constructive growth environment as economic conditions normalize and planning visibility improves.

Across the Southeast, population inflows, infrastructure investment and economic diversification remain important structural advantages. At the same time, moderating labor markets, evolving consumer dynamics and higher financing costs are reinforcing a more selective approach to investment, hiring and expansion. Business leaders are increasingly focused on execution, efficiency and capital discipline rather than broad‑based growth.

Rather than expansion at any cost, many Southeast companies are prioritizing operational leverage, productivity and balance‑sheet resilience. Investment decisions are increasingly phased and ROI‑driven, with capital directed toward areas that improve efficiency, scale and long‑term competitiveness.

A defining theme of the Southeast outlook is cautious optimism. While growth has moderated from prior highs, improving financing conditions and targeted investment are supporting renewed momentum in select sectors.

"Across the Southeast, businesses are adjusting to a more normalized pace of growth," said Tony Sciarrino, Head, BMO Commercial Bank, U.S. "The focus is on disciplined execution—deploying capital thoughtfully, managing costs and investing selectively to strengthen performance in a more balanced operating environment."

National backdrop: solid supports, uneven conditions—and execution as the differentiator

BMO's Business Outlook notes the U.S. economy has meaningful supports in 2026, including AI‑driven business investment, even as risks remain elevated around trade policy, inflation dynamics and geopolitics. Capital markets activity is beginning to thaw unevenly, with improving loan demand, disciplined underwriting and selective M&A—particularly bolt‑on transactions—while broader sponsor‑backed activity remains cautious.

"The Southeast continues to benefit from favorable long‑term fundamentals, even as growth normalizes," said Scott Anderson, Chief U.S. Economist, BMO. "Population trends and infrastructure investment remain supportive, but productivity and disciplined capital allocation will be increasingly important as labor markets soften and expansion becomes more selective."

Southeast outlook

Florida
Florida continues to outperform the national average, even as growth moderates from recent highs. Population inflows, consumer spending and a competitive business climate remain supportive, while housing conditions and labor markets normalize. Targeted sectors—including aerospace, life sciences, advanced manufacturing, logistics and technology—are helping offset softness in consumer‑exposed industries, reinforcing Florida's position as a long‑term growth market operating in a more measured phase.

Georgia
Georgia's economy is settling into a slower but still constructive growth phase, broadly tracking the national trajectory while benefiting from infrastructure investment, logistics and manufacturing strength. Data‑center activity tied to AI‑driven infrastructure investment is a notable tailwind, even as labor‑market softness becomes more visible in some white‑collar sectors. Businesses are responding with selective lending, automation and balance‑sheet discipline rather than broad‑based expansion.

About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.5 trillion as of January 31, 2026. Serving clients for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to approximately 13 million clients across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and stronger communities.  

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SOURCE BMO Financial Group