Survey finds Alabama business leaders more optimistic, but aware state faces more tough times before turnaround
Birmingham News – June 30
…The University of Alabama’s Center for Business and Economic Research surveyed company leaders across the state about the conditions they expect in the third quarter, finding that most of them feel a little better about the state economy than they did previously. But the results of the Business Confidence Survey indicate that they don’t expect a quick turnaround. In fact, it could be early to mid 2010 before things start to turn around, according to Ahmad Ijaz, an economics researcher at the university “We continue to go through a slowdown, though not as sharp as the first half of the year,” Ijaz said Monday. “We expect some stabilization in the fourth quarter, but have still got three to four more tough months to get through.”…Ijaz said Alabama continues to get hit by fallout from the recession that began in December 2007. An economic outlook survey by UA to be released on July 10 found similar optimism offset by lingering concerns about economic woes. The state’s jobless rate has more than doubled to 9.8 percent since the downturn began. “I wouldn’t be surprised to see Alabama’s unemployment rate hit 12 percent by the end of the year,” Ijaz said. “Even when the economy starts to improve, unemployment is a lagging indicator. During the 1990-91 recession, we didn’t see a decrease in unemployment until nearly two years after it ended.” One bright point: Ijaz said Alabama company leaders are more upbeat, noting that business confidence jumped this quarter by the biggest percentage in the eight-year history of the survey, which used to be carried out in conjunction with Compass Bank.
Mobile Press-Register – June 30
Birmingham Business Journal — June 29
Close to Home: Military, tech jobs help Huntsville, Ala.
USAToday.com — June 29
Home sales may be down in Huntsville, Ala., but don’t be fooled: It is still one of the healthiest markets in the nation…Still, unemployment has gone up slightly, says Ahmad Ijaz, economic analyst at the University of Alabama’s Center for Business and Economic Research. And the recession has caused fear and anxiety. Consumer spending has declined, and home sales fell 22.7% in May in Huntsville, compared with the same month last year. Fewer multiple offers are being seen this year than in 2008. But homes are still selling, especially those priced at $300,000 and less. Slower-selling high-end homes are maintaining prices. In the past, the housing market has been resilient…
Montgomery area home sales up slightly
Montgomery Advertiser – June 30
…Another respected monitor of housing trends, the Alabama Center for Real Estate at the University of Alabama, also shows modest increases in month-over-month home prices in the Montgomery metro area using actual reported home sales numbers..ACRE’s May housing report notes: “Although the Alabama residential real estate market remains challenging, statewide housing indicators reveal a modest shift toward improved levels of market ‘stability.’ The market must first stabilize before the broader housing recovery discussion can take center stage.”…
Alabama legislators wary of energy bill
Tuscaloosa News – June 30
Citing the potential harm to the state’s economy, Alabama’s seven congressmen, including the three Democrats, voted against President Barack Obama’s energy bill…University of Alabama political science professor David Lanoue said he wasn’t surprised that the state’s congressional delegation voted against the energy bill. ‘Certainly Bright and Griffith represent conservative districts and they’ll want to distance themselves from Obama’s administration,’ Lanoue said. ‘With Artur Davis, there’s the specter of the governor’s race and he also has been looking for opportunities to distance himself from the Obama administration.’…
Hispanic Jumpstart
CBS42 (Birmingham) – June 29
Some University of Alabama students are reaching out to children who can’t speak English…is free to students. It’s paid for by the Blackburn Institute at the University of Alabama.
Education briefs
Birmingham News – June 30
Several organizations in the University of Alabama School of Social Work are sponsoring a benefit concert and silent auction on Friday, 6 p.m.-midnight, at Little Willie’s in Tuscaloosa to help Susan Cook Broughton and Josh Wimberly, two members of the UA community who have been diagnosed with cancer.