The recent survey from the Boyd Center for Business and Economic Research at the University of Tennessee, Knoxville, reveals that over half of Tennessee business leaders are absorbing higher fuel costs rather than raising prices for their customers. Despite a challenging national economic outlook, these leaders remain optimistic about Tennessee’s economy.
Key findings from the summer 2026 Tennessee Business Leaders Survey include:
- Cost Absorption: More than 50% of businesses absorbed higher gas and diesel costs, with only about 10% passing these costs on significantly to customers.
- Recession Outlook: 80% of survey participants predict a recession chance below 50%, consistent with earlier surveys this year. However, pessimism regarding the national economy has risen, with nearly 45% noting it’s worse than last year.
- Confidence in State’s Economy: Despite the decline in confidence, 57.2% believe Tennessee will outperform the national economy, with significant credit given to business investments and government leadership.
- Business Environment Ratings: 60% of respondents view the business environment as good or excellent, though infrastructure and workforce development were highlighted as areas needing improvement.
- Employee Concerns: 56.8% reported a lack of suitably trained workers, with 61% citing poor work ethic among job seekers. Concerns about retaining employees rose from 36.8% to 43.5%, with challenges linked to housing and childcare costs.
- AI Impact: The use of artificial intelligence is increasing, with 72% of employers saying it hasn’t affected hiring levels, showing a shift in how AI is integrated into business operations.
The full survey results can be accessed through the Boyd Center’s website, reflecting a diverse range of employees and industries across Tennessee.
