Alabama Business™
Established in 1930, each issue contains a free quarterly Alabama economic forecast update.
Economic Outlook Update:
Alabama Business | September 2024
- After a 2.5 percent growth in 2023, Alabama’s economy, as measured by its inflation adjusted Gross Domestic Product (GDP), rose 2.9 percent in the first quarter of 2024, following a 4.8 percent increase in the in the fourth quarter of 2023, totaling approximately $247 billion. For 2024, the state’s GDP will increase by about 2.6 percent while employment is forecasted to increase by approximately 2.0 percent.
- The State lost 5,600 jobs in in August over the previous month, bringing the total net gain in jobs to 43,200 from August 2023 to August 2024, while the seasonally adjusted unemployment rate was increased from 2.5 percent to 2.8 percent.
- During the same period, seasonally adjusted number of unemployed workers rose from 58,570 to 66,619 and the labor force participation rate went up from 57.4 percent in August 2023 to 757.5 percent in August 2024.
- Year to date, total tax revenues increased by 2.3 percent in August 2024 to approximately $15.4 billion during the first 11months of the current fiscal year. For the same period sales tax receipts declined 3.9 percent to about $2.9 billion while individual income tax revenues went up 1.3 percent, totaling approximately $6.3 billion. Total tax revenues are forecasted to increase by about 2.0 percent for the FY2023-2024, and 1.7 percent for the FY2024-25.
- For the first seven months of the year, Alabama exports totaled $15.8 billion, up from $15.6 billion for the same period during previous year, a 1.3 percent increase. Transportation equipment remained state’s largest export, increasing from approximately $8.0 billion during first seven months in 2023 to $8.1 billion for the same period in 2024. China became the largest destination for Alabama exports, totaling $2.6 billion for the first seven months of 2024, compared to $2.0 billion for the same period in 2023, followed by Canada ($2.5 billion), Germany ($2.5 billion) and Mexico ($2.3 billion).
- For the first seven months of the year, Alabama imports totaled $22.8 billion, up from $21.1 billion for the same period during previous year, an 8.1 percent increase. Imports from Mexico totaled $4.3 billion for the first seven months of 2024, compared to $4.6 billion for the same period in 2023, followed by South Korea ($3.8 billion), Germany ($3.0 billion) and China ($2..3 billion). Transportation equipment was the largest import (almost $8.0 billion), followed by nonelectrical machinery ($2.2 billion), electrical equipment and appliances ($2.1 billion), and computers and electronic products ($1.8 billion).
- The US economy grew at an unexpected rate of 3.0 percent in the second quarter of 2024, up from 1.4 percent in the first quarter, resulting in a 2.2 percent growth averaged over the first the first half, following a 4.1 percent growth averaged over the second half of 2023. The increase in the second quarter was primarily due to increase in consumer spending (2.9 percent); and business spending (4.6 percent). Residential fixed investments dropped by 2.0 percent in the second quarter, after an increase of 16.0 percent in the first quarter. Increase in imports by 7.0 percent subtracted from the economic growth. U.S. economy is expected to grow by 2.6 percent in 2024 and 1.8 percent in 2025.
