Outlook among Tennessee consumers has improved heading into the summer months, but the improvement was the result of two offsetting trends, according to the latest statewide survey by Middle Tennessee State University.
The Tennessee Consumer Outlook Index continued its rise into positive territory in June with a score of 20, up from one in March and well above the -58 score in December 2020, according to MTSU’s Office of Consumer Research.
Despite improved optimism over the economic situation, views regarding making large purchases declined. These declines were most noticeable among consumers in West Tennessee.
MTSU economists say this suggests that even though consumers believe the economy has improved as it recovers from the pandemic, concerns about potential rising taxes and inflation might prompt consumers from increasing spending. However, they also say expanding vaccination rates across the state (36%) and country (46%) as of June 28 have given Tennessee consumers greater resolve when resuming shopping, travel and vacation plans.
The current online survey of 610 Tennessee consumers was conducted between June 7-27 and has an error margin of 4%. To see the full report and previous reports, go to https://www.mtsu.edu/consumer/tnoutlookreports.php.
The Consumer Outlook Index scores are based on consumers’ responses to 11 questions measuring their perceptions of the current economy, the future economy, jobs, personal finances, and whether now is a good time to make large purchases. The index, which includes three subindices, is computed by adding the percentage of favorable responses to each question and subtracting the percentage of negative responses to each question.
For more information, visit www.mtsu.edu/consumer.