Huntsville Metro Area Report

Alabama Business Confidence Index™

First Quarter 2026

Growth Still Forecasted but with Decreased Confidence

Business leaders in Huntsville are forecasting economic expansion with mild confidence in the Q1 2026 ABCI. The ABCI registered at 52.2 for the quarter, which is a 3.3-point decrease from last quarter, but still reflects overall expectations for economic growth compared to last quarter’s levels. Four of the six component indexes decreased this quarter, with two falling to mildly contractionary levels (U.S. economic outlook and industry profits). However, metro panelists are still forecasting growth in four component indexes with mild to moderate confidence.

Index above 50 indicates positive outlook as compared to last quarter.
Index below 50 indicates negative outlook compared to last quarter.

Huntsville Component Index Analysis

• Alabama Economy: This quarter, metro business leaders are continuing to anticipate growth in the Alabama economy with a moderately confident index of 55.1.
• US Economy: Expectations for the US economy are mildly contractionary in Q1 2026, with the index decreasing 2.9 points from last quarter’s neutral outlook to 47.7.
• Industry Sales: Huntsville business leaders are still forecasting an increase in sales this quarter, though the confidence in that forecast is mild instead of strong. The Q1 2026 sales index dropped 10.2 points to register at 54.2.
• Industry Profits: The profits index also had a significant decrease this quarter, falling 8.3 points to reach a mildly contractionary index of 48.6, signaling expectations for decreased profits compared to Q4 2025.
• Industry Hiring: Expectations for hiring in Q1 2026 decreased 1.2 points to remain mildly expansionary at 53.2. Just over 57 percent of panelists are forecasting no change in their hiring levels compared to last quarter, while 28 percent expect to increase and 15 percent anticipate a decrease.
• Industry Capital Expenditures: Expectations for capital expenditures are mildly expansionary this quarter: the index increased 2.7 points to register at 54.6.

ABCI Huntsville in Context

Huntsville business leaders have had mixed forecasts over the last ten quarters, with ABCIs ranging from mildly contractionary to strongly expansionary. In Q4 2023 and Q1 2024, the ABCI was pulled downward by strongly contractionary expectations for the U.S. economy and mildly contractionary forecasts for sales, profits, and capital spending. Industry expectations rebounded to expansionary levels in Q2 2024, and since then, forecasts for the industry component indexes have been primarily expansionary with the occasional neutral or mildly contractionary outlook. In general, the metro’s U.S. outlook has been contractionary with the exceptions of a strongly expansionary index in Q1 2025 and mildly expansionary index in Q4 2025.

For the second consecutive quarter, all five of Alabama’s largest metro areas have an expansionary outlook, though the level of confidence in those forecasts varies significantly. Mobile had the highest metro ABCI at 64.3, communicating strongly confident expectations for improved economic conditions in Q1 2026 compared to Q4 2025. Tuscaloosa had a moderately confident outlook of 56.9, while business leaders in Montgomery, Huntsville, and Birmingham all had much milder confidence in their expansionary forecasts. More details can be found in the Statewide ABCI report.

The Center for Business and Economic Research would like to thank the Alabama business executives who completed the first quarter 2026 ABCI™ survey. This is the 97th consecutive quarter this report has been recorded, and it would not have been possible without your participation.
Be sure to log in during the March 1–15 survey window to record your opinions about economic prospects and industry performance looking ahead to the second quarter of 2026.

  & 

This report was produced in partnership between the Center for Business and Economic Research at the The University of Alabama’s Culverhouse College of Business and the Huntsville Area Chamber of Commerce.

Analysis provided by Susannah Robichaux, Socioeconomic Analyst, Center for Business and Economic Research, Culverhouse College of Business, The University of Alabama.