Financial report

Study: Spending to remain slow in '08

State economic experts say they expect businesses and consumers to remain conservative in their spending for the remainder of 2008, based on a report released by the Center for Business and Economic Research at the University of Alabama.

The center's report notes that high prices for food, energy and other commodities along with the housing market slump will continue to have a strong effect on economic growth and payrolls in Alabama.

At best, the report suggests that the state's economy will grow at 1-1.5 percent through the end of the year.

The center's report, which was compiled by Sam Addy and Ahmad Ijaz at the university, said increasing foreclosures as well as declining housing starts and home sales are not expected to turn around in 2008. They say the trend could continue through the first half of 2009.

The report speculates that the commercial and real estate industries statewide will remain soft during the next two or three quarters.

The rate of increase in Alabama's job growth has slowed significantly in recent months, according to the center report. That trend is expected to continue.

Addy and Ijaz predict that the state's unemployment rate could reach 5.5 percent by the end of the year.

The employment situation has not been helped by the slowdown in Alabama's transportation equipment manufacturing industry, which includes motor vehicle manufacturers and their suppliers. The result has been a reduction in production and working hours.

The report, however, notes that some parts of the state, particularly Huntsville and other sections of north Alabama, will likely experience significant increases in payrolls and economic growth.

ThyssenKrupp on schedule with plans

German steel maker ThyssenKrupp says its plans for a giant steel mill in north Mobile County remain on schedule a year after breaking ground on the facility, and production begins in 2010.

The project's $4.2 billion price tag, however, has grown from $3.7 billion.

Company spokesman Scott Posey, of Mobile, said the plant is expected to create 2,700 permanent jobs, and 304 employees already have been hired.

As the mill takes shape, more than 1,500 construction workers are on site each day. Posey said more than 25,000 applications and resumes have been received for both salaried and hourly positions.

ThyssenKrupp also has awarded contracts worth more than $1 billion, not including specialty equipment, that is not available through U.S. companies.

Alabama suppliers account for roughly half of those contracts.

Listerhill breaks ground in Barton

Listerhill Credit Union has broken ground on a new branch at the Barton Riverfront Industrial Park in western Colbert County.

The office is expected to open next spring and will have full-service facilities, according to bank officials.

The credit union provides services to anyone who lives, works or attends school in Colbert, Cullman, Fayette, Lamar, Lauderdale, Lawrence, Limestone, Marion, Morgan, Walker or Winston counties. The member-owned financial institution was founded by Shoals residents more than 50 years ago.

State recognized by economic magazine

An economic development magazine has ranked Tennessee as the country's second best business location, up four spots from 2007. The rankings appear in the November issue of Site Selection. Its annual business climate rankings are determined by the state's economic performance and a nationwide survey of corporate site selectors.

Gov. Phil Bredesen said in a released statement Wednesday Tennessee has had a banner year with Volkswagen Group of America's decision to build a $1 billion auto assembly plant in Chattanooga and create 2,000 jobs for the area.