{"id":2521441,"date":"2025-12-15T15:56:03","date_gmt":"2025-12-15T20:56:03","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tennessees-economy-growing-but-affordability-becoming-issue\/"},"modified":"2025-12-15T15:59:39","modified_gmt":"2025-12-15T20:59:39","slug":"tennessees-economy-growing-but-affordability-becoming-issue","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tennessees-economy-growing-but-affordability-becoming-issue\/","title":{"rendered":"Tennessee&#8217;s economy growing, but affordability becoming issue"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftennessees-economy-growing-but-affordability-becoming-issue%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2521441&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The University of Tennessee&#8217;s Boyd Center for Business and Economic Research released an economic outlook indicating that Tennessee&#8217;s economy is continuing to grow but at a slower pace. The state&#8217;s GDP increased by 0.3% in the first quarter and rose to 3.1% in the second quarter, partly due to tariff-driven shifts in spending patterns. However, growth is expected to slow to 1.7% in 2025 and 2% in 2026, down from 2.7% in 2024 and over 3% in 2023.Factors like federal uncertainty may cause businesses and consumers to delay major purchases, impacting growth. Despite these challenges, consumer spending remains strong but primarily among <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/parker-america-is-still-working\/\" title=\"PARKER: America Is Still Working\">higher-income households<\/a>, while middle- and lower-income groups are only maintaining pre-pandemic levels. affordability is becoming a significant concern for everyday Tennesseans, reflected in struggles with everyday expenses like groceries and utilities. unemployment is steady at 3.6%, with slight projected increases over the next few years, though it will stay below the national average.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Tennessee&rsquo;s economy growing, but affordability becoming a major issue<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2446006\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square)&nbsp;&ndash; <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/tennessee\/\">Tennessee&rsquo;s<\/a> economy will continue to grow at a slower pace, but affordability is becoming a major issue for everyday Tennesseans, according to the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/economy\/\">economic<\/a> outlook prepared by the University of Tennessee&rsquo;s Boyd Center for Business and Economic Research.<\/p>\n<p>The report released Monday shows the state&rsquo;s <a href=\"https:\/\/amzn.to\/3YuVZYV\" >gross domestic product increased<\/a> by 0.3% in the first quarter and accelerated to 3.1% in the second quarter.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/3918357\/chile-trio-charged-string-wisconsin-home-burglaries\/\">Chile trio charged in string of Wisconsin home burglaries<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/3918284\/chris-wright-broad-based-reform-55-year-old-environmental-law-permitting\/\">Wright seeks &#8216;broad-based&#8217; reform of 55-year-old environmental law to speed permitting<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/world\/3918024\/us-90-percent-obstacles-russia-ukraine-solved-germany-talks\/\">US claims 90% of obstacles to Russia-Ukraine agreement solved in Germany talks<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>&ldquo;This was largely driven by tariff-induced changes in spending patterns as businesses and households, they front-loaded purchases of imports, buying more foreign goods in the first quarter to get ahead of tariff-driving price increases.&rdquo; said Lawrence M. Kessler, research associate professor and project director at the Boyd Center. &ldquo;And then this pattern reversed itself in the second quarter as import spending plummeted and domestic purchased rose, leading to a rebound in GDP growth.&rdquo;<\/p>\n<p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-working-with-reporters-to-reshape-coverage-of-economic-woes-under-biden-as-approval-sinks-report\/\" title=\"White House Working With ...ers \u2018To Reshape Coverage\u2019 Of Economic Woes Under Biden As Approval Sinks: ...\">gross domestic product growth<\/a> for all of 2025 is projected at 1.7% and at 2% in 2026.<\/p>\n<p>&ldquo;However, both of these would represent slowdowns compared to the 2.7% rate we saw in 2024 and in 2023, it was above 3%,&rdquo; Kessler said.<\/p>\n<p>One of the reasons behind slower growth is federal uncertainty, which could reduce economic growth if businesses delay large purchases or hirings or if consumers reconsider major purchases, he said.<\/p>\n<p>&ldquo;Despite all of these headwinds, consumer spending in both the state and the nation remains surprisingly strong, though one caveat is that much of the growth has been driving by higher income households in recent years,&rdquo; Kessler said.<\/p>\n<p>Unemployment in Tennessee is steady at 3.6%. The report projects an increase to 3.8% in 2026 and 3.9% in 2027. The rate will remain lower than the national average of 4.5%, Kessler said.<\/p>\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/investigations\/3917503\/trump-hud-sending-staff-minnesota-investigate-amid-fraud-scandal\/\">EXCLUSIVE: TRUMP HUD SENDING STAFF INTO MINNESOTA TO INVESTIGATE AMID STATE WELFARE FRAUD SCANDAL<\/a><\/strong><\/p>\n<p>The report is prepared annually for Gov. Bill Lee. TCS asked Kessler what it means for everyday Tennesseans.<\/p>\n<p>&ldquo;Looking at consumption spending across different income groups, as I briefly mentioned in my remarks, a lot of the spending growth has been driven by higher income households, whereas consumption spending by middle income households and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-admin-floats-mileage-tax-to-pay-for-infrastructure-plan\/\" title=\"Biden admin. floats mileage tax to pay for infrastructure plan\">lower income households<\/a>, it like just keeping pace with where it was prior to the pandemic,&rdquo; Kessler said. &ldquo;And I think everyday Tennesseans are kind of seeing that or feeling that when they, whether they go to the grocery store, pay their electric bills, that affordability is becoming a major issue. I think that&rsquo;s kind of the main headline for the everyday person who would read this.&rdquo;<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tennessee&#8217;s economy grows slower; affordability worsens<\/p>\n","protected":false},"author":2869,"featured_media":2521442,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/09\/AP25197042751000.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651,538],"tags":[68856,58959,36446,68855],"class_list":["post-2521441","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","category-washington-examiner","tag-affordability-issues","tag-cost-of-living-2","tag-economic-growth","tag-tennessee-economy"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/09\/AP25197042751000.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2521441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2869"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2521441"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2521441\/revisions"}],"predecessor-version":[{"id":2521445,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2521441\/revisions\/2521445"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2521442"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2521441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2521441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2521441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}