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University of Memphis University of Memphis Digital Commons Economic Indicators Tennessee Secretary of State 8-1-2017 Tennessee Secretary of State: The TN Quarterly Business and Economic Indicators, Second Quarter 2017 Tennessee. Secretary of State. Follow this and additional works at: https://digitalcommons.memphis.edu/govpubs-tn-sos-economic-indicators Recommended Citation Tennessee. Secretary of State., "Tennessee Secretary of State: The TN Quarterly Business and Economic Indicators, Second Quarter 2017" (2017). Economic Indicators. 22. https://digitalcommons.memphis.edu/govpubs-tn-sos-economic-indicators/22 This Report is brought to you for free and open access by the Tennessee Secretary of State at University of Memphis Digital Commons. It has been accepted for inclusion in Economic Indicators by an authorized administrator of University of Memphis Digital Commons. For more information, please contact khggerty@memphis.edu. Q3 2017 vs Q2 2017 Q3 2017 vs Q3 2016  Q4 2017 vs Q4 2016   vs. prior monthvs. prior yearEmployment (SA)vs. prior quartervs. prior yearNew Entity Filings vs. prior quartervs. prior yearAnnual Report Filingsvs. prior monthvs. prior yearUnemploymentIN THIS ISSUEBusiness Filings Overview ....... 1Initial Filings .......................... 2 Annual Reports and      Dissolutions ..................... 2Tennessee Economic   Indicators............................ 3National Economic   Indicators............................ 4Tre HargettTennessee Secretary of StateState Capitol, First Floor600 Charlotte AvenueNashville, TN 37243Phone:  (615) 741-2819www.sos.tn.gov Prepared by the Boyd Center for Business and Economic ResearchHaslam College of BusinessUniversity of TennesseeBUSINESS AND ECONOMIC INDICATORSTHE TN QUARTERLYSECOND QUARTER 2017August 2017TENNESSEE SECRETARY OF STATETre HargettINDICATORSEMPLOYMENT  FORECASTSFigure 1: Tennessee Employment and New Entity FilingsSource: Tennessee Business Filing Data and Bureau of Labor Statistics.Business Filings OverviewNew entity filings experienced year-over-year growth in the second quarter of  2017. During the same period, annual reports, dissolutions, and initial assumed name registrations all fell, while initial trademark registrations grew. Over the last 12 months, Tennessee has recorded 37,009 new entity filings and 223,540 annual reports. As of  July 1, 2017, there were 267,143 ac-tive entities in Tennessee, representing a 3 percent increase compared to the previous quarter’s count. Growth in new entity filings points toward sustained economic growth for the state. The number of  new entity filings is a good leading indicator of  nonfarm employment, person-al income, and total tax revenues in Tennessee. New entity filings have grown by 6.8 percent compared to the second quarter of  2016, suggesting that broader economic growth should 2  |  TENNESSEE SECRETARY OF STATE  QUARTERLY BUSINESS & ECONOMIC INDICATORSQ2 2017TABLE 1: BUSINESS FILINGS – QUARTERLYFigure 2: Growth in Quarterly Initial FilingsSource: Tennessee Business Filing Data. Figure 3: Initial FilingsSource: Tennessee Business Filing Data.Current Quarter(2017 Q2)% Change(over last quarter)% Change(year-over-year)Running 12-Month TotalBusiness Entity Initial FilingsDomestic For-Profit Corporations 1,311 -4.4% 7.8% 4,984Domestic Nonprofit Corporations 855 -4.8% -2.3% 3,467Domestic LLC 5,724 -11.7% 7.1% 22,245Foreign Entities - Total 1,634 0.7% 10.0% 6,313Total Business Entity New Filings 9,524 -8.2% 6.8% 37,009Business Entity Annual ReportsDomestic For-Profit Corporations 11,842 -64.4% -7.4% 53,786Domestic Nonprofit Corporations 8,449 -58.1% -6.7% 38,837Domestic LLC 21,360 -62.0% -6.5% 85,847Foreign Entities - Total 5,549 -83.9% -16.9% 45,070Total Business Entity Annual Reports 47,200 -67.3% -8.1% 223,540Total Active Entities 267,143 3.0% 5.3% -Other Business FilingsDissolutions 2,066 -14.0% -0.2% 29,448Initial Trademark Registrations 225 -3.0% 4.2% 763Initial Assumed Name Registrations 1,199 -19.2% -2.3% 4,790TENNESSEE SECRETARY OF STATE  QUARTERLY BUSINESS & ECONOMIC INDICATORS  |  3continue into the near future.Initial FilingsTennessee recorded 9,524 new entity filings (i.e. initial fil-ings) during the second quarter of  2017, representing a 6.8 percent increase compared to the same quarter last year. Initial filings have now shown positive year-over-year growth for 23 consecutive quarters (Figure 2). New entity filings of  domes-tic for-profit corporations, limited liability corporations (LLCs), and foreign entities all grew over last year, while new filings of  domestic nonprofit corporations shrunk. New filings from for-eign entities saw the strongest growth, increasing by 10 percent compared to the second quarter of  2016. Domestic firms ac-counted for 82.8 percent of  all new filings in the second quarter of  2017, while foreign entities accounted for the remaining 17.2 percent. Compared to the previous quarter’s count, new entity fil-ings shrunk by 8.2 percent, but this was largely driven by seasonal variation. Since 2003, second quarter filings have consistently been smaller than first quarter filings. Among the four largest counties there were 5,566 new entity filings during the second quarter of  2017, representing a 12.4 percent increase compared to the same quarter last year (Table 2). New entity filings in the four largest counties accounted for 58.4 percent of  all new filings in the state. Among the four counties, Davidson County had the most new filings with 2,255, followed by Shelby County with 1,798. Annual Reports and DissolutionsAnnual reports and dissolutions both fell in the second quarter of  2017 as compared to the same quarter last year. There were 47,200 annual reports filed in the second quarter, TENNESSEE SECRETARY OF STATE  QUARTERLY BUSINESS & ECONOMIC INDICATORS  |  3Q2 2017TABLE 3: TENNESSEE DATASources in order as metrics appear and dates in parenthesis indicate most recent data available at time of publication: Bureau of Economic Analysis, Tennessee Department of Revenue, and Bureau of Labor Statistics.Unemployment rate (%)       June 2017       Rate Rate Change Rate Change3.6 4.0 -0.4 4.7 -1.1                May 2017                                June 2016                 Current Period% Change(over last period)% Change(year-over-year)Personal income (millions of dollars) [2017Q1] 296,552              4.8% 4.4%Total tax revenue (millions of dollars) - monthly [2017-June] 1,418                   33.7% 5.4%Sales tax revenue (millions of dollars) - monthly [2017-June] 732                       0.3% 6.7%Franchise & excise tax revenue (millions of dollars) - monthly [2017-June] 456                       775.2% 14.6%Total nonfarm employment (in thousands) - monthly [2017-June] 3,018                   0.2% 2.0%Manufacturing employment (in thousands) - monthly [2017-June] 347                       -0.6% 0.8%Mining, logging, & construction employment (in thousands) - monthly [2017-June] 126                       0.6% 6.4%Table 2: Initial Filings among the Four Largest TN Counties, 2017Q2Rank County Current Period% Change(over last period)% Change(year-over-year)1 Davidson 2,255 -5.8% 6.2%2 Shelby 1,798 -7.7% 18.0%3 Knox 819 -8.4% 14.2%4 Hamilton 694 -11.8% 18.0%Total 5,566 -7.6% 12.4%Source: Tennessee Business Filing Data.Figure 4: Annual ReportsSource: Tennessee Business Filing Data.representing an 8.1 percent drop compared to the second quar-ter of  2016. Domestic firms accounted for 88.2 percent of  all annual reports and 11.8 percent came from foreign entities. An-nual reports of  foreign entities saw the largest year-over-year dip, falling by 16.9 percent, followed by domestic for-profit corpora-tions which fell by 7.4 percent. There were 2,066 dissolutions filed in the second quarter of  2017, representing a slight drop compared to the same quarter last year.  Tennessee Economic IndicatorsEconomic data shows signs of  continued growth in Tennessee. In June 2017, Tennessee tax revenues were up 5.4 percent compared to June of  last year. Sales tax revenues increased by 6.7 percent, and franchise and excise tax revenues were up 14.6 percent. For the fiscal year-to-date (August 2016 to June 2017), Tennessee tax revenues have grown by 4.2 percent. Nominal personal income also increased by 4.8 percent over the previous quarter and 4.4 percent over the same quarter last year. In the Tennessee labor market, nonfarm employment grew by 2 percent, or 59.3 thousand jobs, compared to last June. Jobs in the mining, logging, and construction sector expanded by a robust 6.4 percent or 7.6 thousand jobs, and manufacturing employment was up 0.8 percent, or 2.9 thousand jobs compared to June of  last year. The number of  unemployed Tennesseans fell by a dramatic 22 percent compared to last June, while the number of  employed people rose by 1.9 percent. As a result, the state unemployment rate fell to 3.6 percent, the lowest monthly unemployment rate recorded in the Bureau of  Labor Statistics (BLS) database, which dates back to 1976. Tennessee’s unem-ployment rate is now 0.7 percentage points lower than the cur-4  |  TENNESSEE SECRETARY OF STATE  QUARTERLY BUSINESS & ECONOMIC INDICATORSQ2 2017TABLE 4: NATIONAL DATAFigure 5: Unemployment RateSource: Bureau of Labor Statistics.Figure 6: Retail Gasoline Prices – All GradesSource: U.S. Energy Information Administration.Current Period% Change(over last period)% Change(year-over-year)Personal income (billions of dollars) [2017Q2] 16,362 3.0% 2.8%Real GDP (2009 billions of dollars) [2017Q2] 17,011 2.6% 2.1%Consumer price index (1982-84 = 1.00) [2017Q2] 2.44 -0.1% 1.9%Light vehicle sales (millions) [2017Q2] 16.60 -3.2% -2.8%Housing starts (millions) [2017Q2] 1.14 -7.8% -1.6%Federal funds rate (%) [2017Q2] 0.95 35.9% 154.8%30-year fixed mortgage rate (%) [2017Q2] 3.99 -4.4% 10.9%S&P 500 stock index [2017Q2] 2,396 3.1% 15.5%Retail Gasoline Prices (dollars per gallon)  - monthly [2017-July] 2.41 -1.9% 2.9%Total nonfarm employment (in thousands) - monthly [2017-July] 146,615 0.1% 1.5%Sources in order as metrics appear and dates in brackets indicate most recent data available at time of publication: Bureau of Economic Analysis, IHS Global Insights, U.S. Energy Information Administration, Weekly Retail  Gasoline and Diesel Prices, Bureau of Labor Statistics.Unemployment rate (%)            July 2017            Rate Rate Change Rate Change4.3 4.4 -0.1 4.9 -0.6            June 2017                       July 2016            rent national rate (see Figure 5).National Economic IndicatorsThe national economy saw steady growth in the second quarter of  2017. Inflation-adjusted gross domestic product (real GDP) rebounded in the second quarter, advancing at an annual rate of  2.6 percent compared to the previous quarter. This was a welcoming sight after the sluggish 1.2 percent growth rate registered in the first quarter. However, national housing starts fell by 7.8 percent and light vehicle sales were down 3.2 percent compared to the previous quarter, while personal income grew by 3 percent. Nonfarm employment grew by 1.5 percent compared to last July, representing an addition of  2.2 million jobs over the last 12 months and 209 thousand new jobs compared to the previ-ous month. Retail gasoline prices, currently at $2.41/gallon, fell by 1.9 percent compared to the previous month. However, gas prices have now sat steadily above the $2.40/gallon mark for seven consecutive months. 

Tennessee Secretary of State: The TN Quarterly Business and Economic Indicators, Second Quarter 2017

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Tennessee Secretary of State: The TN Quarterly Business and Economic Indicators, Second Quarter 2017

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