Tennessee Economy Continues to Experience Steady Growth

Thursday, November 19, 2015

Read the report and listen to the teleconference: http://sos.tn.gov/tennessee-quarterly-business-and-economic-indicators-reports

New business filings indicate Tennessee's economy will continue to grow, according to an economic report released Thursday.

The Volunteer State recorded 8,289 new entity filings during the third quarter of 2015, which is a 5.3 percent increase compared to the same quarter last year. Both new entity and annual report filings had year-over-year growth, which suggests future growth in nonfarm employment, personal income and total tax revenues.

The Tennessee Quarterly Business and Economic Indicators report is created to provide a periodic snapshot of the state’s economy based on a variety of information, including new business data from the Division of Business Services. It’s published through a partnership with Secretary of State Tre Hargett and the University of Tennessee Knoxville’s Center for Business and Economic Research.

“The data demonstrates how strong Tennessee’s economy is now, and how strong it could be moving forward,” Secretary Hargett said. “We are in a position that would make just about any other state envious.”

Davidson County led the way with 1,493 new filings. Shelby County was a close second with 1,071 filings.

There were 22,855 dissolutions filed in the third quarter of 2015, which is 5.6 percent more than the same time last year. This spike is a common seasonal pattern as many entities are administratively dissolved in August for failing to file their annual report.

Tennessee’s unemployment rate held at 5.7 percent in September, unchanged from August. The state is still above the national unemployment rate of 5 percent, but well below the state average of 6.6 percent from a year ago.

The national economy saw slow, but steady growth during 2015Q3. Some of this can be attributed to strong light vehicle sales, growth in housing starts and falling gas prices.