Tag Archives: Personal Income

UT economists predict modest economic growth in 2014

University of Tennessee economists predict modest improvement in the Tennessee and national economies in 2014, according to fall 2013 Tennessee Business and Economic Outlook released Thursday.
“While growth is subdued due to reduced federal government spending and a global slowdown, the expansion has shown a much-welcomed resilience,” said Matt Murray, associate director of UT’s Center for Business and Economic Research and the report’s author.
“The outlook for 2014 is encouraging, but the economy continues to confront a number of domestic and international challenges,” Murray added.
Residential and non residential fixed investments and exports will drive growth next year, while reduced federal and state government spending “will be the primary drags on growth,” Murray said.
Unemployment will continue to fall in 2014, but a decline in labor force participation continues to be a problem, the report says.
The state’s unemployment rate, however, will average 8.2 percent for 2013, compared to 7.6 percent for the nation. Tennessee’s unemployment rate was 8 percent last year and is expected to drop to 7.6 percent in 2014 and 7 percent in 2015, according to a news release.
Other highlights from the report:
Personal income in Tennessee is expected to grow 2.6 percent this year, slightly lower than the nation’s 2.7 percent rate of growth, and improve to 4.4 percent in 2014.
Professional and business services, leisure and hospitality services, and manufacturing sectors will see marginally slower growth next year compared to this year.
Eating and drinking establishments and food stores will experience strong growth this year.
Taxable sales growth for 2013 is expected to be 3.2 percent, well behind the 4.7 percent growth rate of 2012. It will see modest improvement in 2014 to a projected 3.5 percent.
Automobile dealer sales were especially hot in 2012, up 10.1 percent, as consumers continued to satisfy their demands for vehicle upgrades. A cooling of sales will take place this year, with a rebound to 4.4 percent growth in 2014.
Click here for the full CBER report.

Report: Economy ready for strong growth in 2014

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.

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More money in your pocket?

Does it feel like you have more money in your pocket?
CurrencyMaybe you do.
Personal income growth in Tennessee rose 3.9 percent in 2012, according to the latest data from the U.S. Bureau of Economic Analysis.
That was the 10th best state growth rate in the country and faster than neighboring states in the Southeast.
Tennessee also performed better than the nation overall. Nationally, “average state income growth slowed to 3.5 percent in 2012 from 5.2 percent in 2011, BEA reported.

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UT report: Sluggish job creation slows recovery

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.

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Tennessee personal income rising

State personal income increased in all but two states and inflation declined in the first quarter, according to estimates released today by the U.S. Bureau of Economic Analysis.

The national average increase in earnings was 0.9 percent. Inflation fell to 0.4 percent from 0.6 percent in the fourth quarter of 2009.

Tennessee posted better 1Q results than most states with personal income rising 1.4 percent, up from from 0.8 percent in the prior quarter.

All in all, a pretty good report. However, there are some numbers that give us pause.

Breaking down earnings by industry, BEA reports that construction and real estate earnings were down again.

On the positive side, healthcare provided the biggest boost to earnings. A 3.4 percent pay raise for the military and a 2 percent increase for federal civilian workers also helped.

Read the full BEA report here.

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We’re No. 7! In personal income

New data released Thursday by the Bureau of Economic Analysis shows that personal income for Knox County rose 3.1 percent from 2007 to 2008, a reflection of the good times just before the recession kicked in.

On a per capita basis, personal income for the county was $36,342 in 2008, seventh highest in Tennessee. Williamson County was No. 1 at $55,717, followed by Davidson County at $44,228 and Shelby County at $41,598.

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