In Tennessee, the state economy will see a modest slowdown in growth into the third quarter of the year. Growth will accelerate as the year comes to a close, setting the stage for sustained economic expansion through 2015. Nonfarm employment will be up 1.7 percent in 2013 compared to 1.8 percent growth in 2014. Manufacturing will see employment growth continue into 2015. Jobs in the state’s industrial sector will be up 1.6 percent this year and next year. The unemployment rate will continue to inch down yielding an annual average of 7.8 percent in 2013 and 7.5 percent in 2014. The preparation of this report was financed in part by the following agencies: the Tennessee Department of Finance and Administration, the Tennessee Department of Economic and Community Development, the Tennessee Department of Revenue, the Tennessee Department of Labor and Workforce Development, and the Appalachian Regional Commission.