Tennessee's economy will continue to grow at a slower pace, but affordability is becoming a major issue for everyday Tennesseans, according to the economic outlook prepared by the University of Tennessee's Boyd Center for Business and Economic Research.
The report released Monday shows the state's gross domestic product increased by 0.3% in the first quarter and accelerated to 3.1% in the second quarter.
"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." said Lawrence M. Kessler, research associate professor and project director at the Boyd Center. "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."
