MURFREESBORO, Tenn. — Heading into the holiday shopping season, Tennessee faces a somewhat disconnected economy – consumer outlook plummeting while sentiment among business leaders is rising, according to the Consumer Research Institute at Middle Tennessee State University.

Housed within MTSU’s Jones College of Business, the Consumer Research Institute recently issued results from its latest Tennessee Consumer Outlook Index survey, which revealed that positive sentiment plummeted to 16 percent statewide, the lowest score in 10 years, while negative sentiment increased to 35 percent.

That’s in contrast to Tennessee business leaders who responded to the latest Tennessee Business Barometer online survey, where positive sentiment among business leaders is now at an all-time high of 48 percent (and negative sentiment is at 11 percent).

In short, Tennessee consumers are generally pessimistic, and business leaders are optimistic about the state of the economy, noted Michael Peasley, institute director and assistant professor of marketing.

A summary of survey results includes:

• Only 9 percent of Tennessee consumers this quarter said that conditions in the U.S economy are favorable, and only 24% percent think that conditions will be better six months from now.
• Only 10 percent of Tennessee consumers reported that their personal financial situation has improved over the last year, while 40 percent stated it has worsened, and 49 percent indicated it remains the same.
• 55 percent of Tennessee consumers stated that they don’t believe they could survive financially if they lost their job.

Consumers anticipate saving, spending less

The survey also revealed that Tennessee consumers do not believe now is a good time to make larger purchases, and they anticipate spending less for goods and services. Only 10 percent of Tennessee consumers believe it is a good time to make large purchases. Only 9 percent of Tennessee consumers believe now is a good time to buy a house. Only 11 percent of Tennessee consumers believe now is a good time to buy a car. Over 50 percent of Tennessee consumers report saving less than they did last year. 

Business leaders optimistic

In contrast, the Tennessee Business Barometer survey showed that the state’s business leaders’ concerns about inflation, taxes, tariffs, and staffing have all decreased over the last year. 

• 59% of Tennessee business leaders said they expect their firm’s sales to increase this year, and only 9% expect their sales to decrease.
• 59% of Tennessee business leaders said they expect their firm’s profits to be higher than last year, and only 12% expect their profits to decrease.
• 45% of Tennessee business leaders said their number of employees will increase this year, while 7% said their employee count will decrease. 

Full results, including charts and graphics, for the Consumer Outlook Survey and the Tennessee Business Barometer can be found at https://consumer.mtsu.edu.•

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