UT Report: Tennessee Economy Cooling Down

Knoxville (AP) -- A Report from the University Of Tennessee shows the state economy is cooling.

The forecast from the UT Center for Business and Economic Research says Tennesseans should expect to see fewer new jobs, a weak housing market and higher gas prices through the first part of 2007.

The report is an update to an annual assessment prepared for the governor.

The study says both the state and national economies will see slower growth because of rising interest rates and more expensive energy.

Statewide unemployment is expected to be 5.5% this year and tick up a tenth of a point next year.

The state's manufacturing sector is projected to lose jobs again this year, at the same time the nation adds manufacturing jobs.

Center Associate Director Matt Murray says even with slower job growth and rising unemployment rates, the national and state economies won't retreat into recession.

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