Forecast: Alabama economy should outpace nation for rest of year, accelerate in 2014
Post date: Aug 01, 2013 8:1:15 PM
By Stan Diel | sdiel@al.com Email the author | Follow on Twitter on July 30, 2013 at 2:16 PM, updated July 30, 2013 at 2:17 PM
BIRMINGHAM, Alabama – Alabama’s economy will expand at a 2.2 percent rate this year, then accelerate with 3.2 percent growth in 2014, a forecast released today by the University of Alabama indicates. The forecast from UA’s Culverhouse College of Commerce also predicts that the state will add 15,000 to 20,000 jobs this year, a slight improvement over job growth in 2012. The rate of growth in the state’s economy this year should easily outpace the national rate, forecast to be 1.6 percent.
“Transportation equipment manufacturing will continue to show strong growth. Demand for vehicles made in the state is expected to keep production at current levels for the rest of this year,” a summary of the forecast states. “And the 2014 rollout of the Alabama-made C-Class is creating new jobs at Mercedes and related suppliers.”
The forecast also found that food services and bars, healthcare, education, finance and social assistance sectors should see significant improvement while the residential and commercial real estate markets should show gradual gains.
The state’s seasonally adjusted unemployment rate in was 6.5 percent, down from 7.6 percent in June of last year.
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