Tennessee’s economy continues to show significant growth in 2018, according to a report released Monday by the Secretary of State’s office.
There were 10,709 new entity filings in the third quarter of 2018, which represents a 14.8 percent increase over the same time period last year. This denotes the 28th consecutive quarter of positive year-over-year growth. The current 14.8 percent growth rate is the fastest of the last 10 years. As of Sept. 1, there were 267,952 active entities in Tennessee, representing a 5.7 percent increase compared to the third quarter of 2017.
“Quarter after quarter we continue to see the positive effects of having a business-friendly state," said Tennessee Secretary of State Tre Hargett. "This record growth shows that Tennessee’s economy is continuing to flourish."
The Tennessee Quarterly Business and Economic Indicators report is created to provide a periodic snapshot of the state’s economy based on a variety of information, including new business data from the Division of Business Services.
Domestic Limited liability corporations (LLCs) account for nearly two-thirds of all new filings, increasing by 14.7 percent. New filings of foreign entities saw the strongest growth, increasing by 23.3 percent.
Hamilton County led the way among the state’s four largest counties with 13.4 percent growth in initial filings. Davidson County came in second at 10.4 percent with Shelby County trailing just behind at 10.0 percent. Knox County saw an 8.5 percent increase. The four counties accounted for 6,083 new entity filings during the third quarter of 2018, which is a 10.3 percent increase compared to the same time in 2017.
The state's unemployment rate remained unchanged from August to September at 3.6 percent. The state's unemployment rate remains slighlty below the U.S. rate of 3.7 percent.
The national economy saw strong growth due to increases in both consumer and government spending. Personal income grew 4.2 percent over the previous quarter.