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STATE Financial report - Huntsville still great - see below:

Published: Sunday, November 9, 2008 at 3:30 a.m.

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.