Study Finds Strong Expectations For Business Performance, Hiring, and Demand Growth
(UCBJ) – As we enter the second half of 2026 (my how time flies), Tennessee is seeing a renewed sense of confidence, according to a release by LendingTree. The state now ranks as the eighth-most optimistic in the nation. According to the release, Tennessee earned an optimism index score of 24.1.
About 34% of Tennessee businesses expect strong performance over the next six months, while 13.8% anticipate employment growth and 24.4% expect demand growth.
Business performance, demand growth (20.5%) and employment growth (11.9%) are the areas where businesses are most optimistic, with nearly one-third of businesses (30.9%) expecting strong business performance over the next six months.
Businesses with 50 or more employees were significantly more likely to expect workforce expansion than smaller firms, according to the report. Among larger businesses, 34.1% expect employment growth, compared to 13.9% of smaller businesses.
What are the most optimistic industries?
- Utilities ranked as the most optimistic sector with an optimism index score of 30.5.
- Finance and insurance followed at 28.2.
- Healthcare and social assistance ranked third at 24.9.
- Retail trade was the least optimistic sector with a score of 15.2.
“There are still many unknowns complicating things for businesses, but we’ve also seen that consumers have remained pretty resilient in the face of economic headwinds. Businesses can take some comfort in that. If they and their customers have successfully navigated the past year, there’s reason to believe they’ll be able to do the same over the next six months, too,” said Matt Schulz, chief consumer finance analyst at LendingTree, in the release.
What does this mean? The findings suggest businesses are entering the second half of the year with greater confidence than they had a year ago. If that optimism translates into hiring, investment and expansion, it could provide a positive boost for the broader economy.
The full study is available at https://www.lendingtree.com/business/small/optimism-study/.
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