Despite cuts in government spending and payroll tax increases, the state and national economies are poised for solid growth in 2014 and 2015, a University of Tennessee report says.
Driving the growth are improved job creation, surging vehicle sales and a recovering housing market, according to the spring 2013 Tennessee Business and Economic Outlook.
“The economy has finally found a firm footing,” Matt Murray, associate director of the UT Center for Business and Economic Research and the report’s author, said in a news release “This will be the third year of payroll employment growth and a falling unemployment rate following the Great Recession.”
Nationally, payrolls are expected to grow 1.5 percent this year and 1.6 percent in 2014, the report said.
Tennessee’s economy will continue modest growth this year, but should be “substantially stronger”in 2014, University of Tennessee economists said today.
On the national scene, the economy is expected to grow slowly in the coming months with a steady decline in the unemployment rate, according to the annual economic forecast prepared for the governor by UT’s Center for Business and Economic Research.
“The U.S. economy is projected to continue to grow in the quarters ahead and the unemployment rate will continue its slow but steady decline,” said Matt Murray, associate director of CBER and the report’s author. “For Tennessee, the economic outlook calls for modest growth in 2013 followed by substantially stronger growth in 2014.”
Tennessee’s economy is moving forward, but progress remains painfully slow, according to a University of Tennessee report released today.
After “exceptionally strong rates of economic expansion” in the first quarter, the state economy slowed sharply in the second quarter as effects of the debt crisis in Europe rippled across the globe, says the fall 2012 Business and Economic Outlook.
However, UT economists see the state and national economies posting modest gains through the first half of 2013.
Significant economic improvement is still a year or two away, according to the study prepared by the university’s Center for Business and Economic Research.
Tennessee’s economy is “marginally healthier” than the national economy, but sluggish job growth continues to be a drag on the state and national economies, according to a report released today by the University of Tennessee’s Center for Business and Economic Research.
Nonfarm employment in Tennessee is expected to rise 1.7 percent this year, compared to 1.5 percent growth for the nation, the report says.
Tennessee’s unemployment rate is expected to average 7.8 percent for 2012 and drop to 7. 4 percent next year. The national unemployment rate is expected to average 8.1 percent this year and fall to 7.8 percent in 2013, according CBER’s spring 2012 Tennessee Business and Economic Outlook.
Among the interesting bits of news in the spring economic forecast released today by the University of Tennessee is this: Car shopping is hot.
Wow. Who would have thought car dealers would rescue the economy.
Taxable sales in Tennessee will see strong growth this year and auto “sales will be a major driver with fiscal year growth of 12.6 percent. On a calendar year basis, sales are expected to advance 4.8 percent in 2011. Automobile sales, along with purchases from manufacturers, will show the largest gains over 2010.,” says the spring 2011 Tennessee Business and Economic Outlook produced by the UT Center for Business and Economic Research.
Tennessee’s economy is growing again, but it will take years to completely bounce back from the recession, University of Tennessee economists said today in their annual report to the governor.
“While recessions are a natural part of the business cycle, the length and depth of the current cycle has been unprecedented. The decade ahead will represent a period of significant adjustment and restructuring for both the state and national economies,” Matt Murray, CBER associate director and author of the study, said in a prepared statement.
So says the University of Tennessee Center of Business and Economic Research. The jobless rate is slowly recovering, tax collections are improving and personal income is growing, UT economist Matt Murray wrote in the spring update to the CBER economic report to the governor.
But it’s going to be a long haul. It will be 2013 before the economy shows significant improvement, Murray says.
The report also notes that the state must eventually confront the inevitable — tax increases or deep cuts in spending when federal stimulus funds run out next year.