MURFREESBORO, TN - As Tennessee heads into the holiday shopping season, a curious divide is emerging between shoppers and business leaders. According to the latest surveys from Middle Tennessee State University’s Consumer Research Institute, housed within the Jones College of Business, consumers are feeling gloomier than they have in a decade, while business leaders are brimming with confidence.

The Tennessee Consumer Outlook Index shows that only 16% of residents hold a positive view of the economy, the lowest score in ten years. Meanwhile, 35% expressed negative sentiment, reflecting growing concerns about personal finances and job security. Just 9% of consumers believe the U.S. economy is currently favorable, and only 24% expect conditions to improve in the next six months. Nearly half say their financial situation hasn’t changed in the past year, while 40% report it has worsened. Perhaps most striking, 55% of Tennesseans say they could not survive financially if they lost their job.

That pessimism extends to spending habits. Few believe now is a good time to make major purchases: only 10% for large items, 9% for homes, and 11% for cars. More than half admit they are saving less than last year, signaling a cautious approach to the season ahead.

On the other hand, Tennessee’s business leaders are painting a far rosier picture. The Tennessee Business Barometer survey reveals optimism at an all-time high, with 48% expressing positive sentiment and only 11% negative. Concerns about inflation, taxes, and staffing have eased, and many leaders expect growth. Nearly 60% anticipate higher sales and profits this year, while 45% plan to expand their workforce.

Michael Peasley, director of the Consumer Research Institute and assistant professor of marketing, summed up the contrast: “Consumers are generally pessimistic, and business leaders are optimistic about the state of the economy.”

The surveys highlight a disconnect that could shape Tennessee’s economic landscape in the months ahead. Shoppers may tighten their belts, even as businesses prepare for expansion. Whether the optimism of business leaders or the caution of consumers proves more accurate remains to be seen.

Full survey results, including charts and graphics, are available at consumer.mtsu.edu.