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Tornado Recovery Boosting Ala. Economy

Cullman, AL – Analysts think the April tornadoes that decimated much of Alabama might provide the catalyst needed to kick-start the economy.

A study released this week found that cleanup and rebuilding in 2011 should pump around $2.6 billion into the state economy, with the majority coming from insurance claims and federal assistance.

Though economic indicators and unemployment took an initial hit, with the state unemployment rate increasing last month, the University of Alabama Center for Business and Economic Research report anticipates the gains should far outweigh early losses.

Reconstruction is anticipated to generate gains of up to $2.9 billion, or 1.6 percent, statewide and create more than 51,700 jobs.

Businesses around Cullman County are reporting that initial declines are beginning to turn around, and businesses in fields related to cleanup are booming.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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