The growth and economic vitality of small cities within every state is important.

These areas often serve as centers of employment, retail, health care and education in rural areas, according to the Federal Reserve Bank of Atlanta, and while many smaller metros are on the rise, some are regressing.

The Federal Reserve Bank of Atlanta’s Small City Economic Dynamism Index ranks Tuscaloosa the highest in Alabama in terms of economic dynamism. This is based on four major categories: demographics, economics, human capital and infrastructure.

Tuscaloosa is ranked No. 30 out of 244 small cities across the country, with an Economic Dynamism Index Score of 4, which ranks in the study’s highest category.

Tuscaloosa is the only small city in Alabama to rank “high,” according to the report.

Huntsville came in at No. 107 out of 244 metros, with an Economic Dynamism Index Score of 3, as did Florence-Muscle Shoals (No. 80 out of 244 metros) and Auburn (No. 83 out of 244 cities). Gadsden, Anniston-Oxford, Mobile, Dothan and Montgomery all scored 2.

Decatur is the lone small city in Alabama scoring 1 on the federal index.

To review the entire study, click here.

Bryan Davis is the research/media coordinator for the Alabama Center for Real Estate housed within the Culverhouse College of Commerce at the University of Alabama. He can be reached at 205-348-5416 or at bkdavis@culverhouse.ua.edu.