FALL 2002: Forecast Data
20021:03 to 2004:03
Quarterly Tennessee Econometric Model
Baseline Forecast as of September 2002
TABLE OF CONTENTS
Table
 1.  Selected U.S. and Tennessee Economic Indicators (SA)*
 2.  Selected Per Capita U.S. and Tennessee Economic Indicators (SA)
 3.  Personal Income by Components (96$, SAAR)*
 4.  Personal Income by Components (Current$, SAAR)
 5.  Employment, Nonagricultural (NSA)*
 6.  Employment, Durable Goods (NSA)
 7.  Employment, Nondurable Goods (NSA)
 8.  Employment, Nonagricultural (SA)
 9.  Employment, Durable Goods (SA)
10.  Employment, Nondurable Goods (SA)
11.  Average Annual Wage and Salary Rate (96$, NSA)
12.  Average Annual Wage and Salary Rate (96$, SA)
13.  Average Annual Wage and Salary Rate (Current$, NSA)
14.  Average Annual Wage and Salary Rate (Current$, SA)
15.  Civilian Labor Force and Unemployment Rate (NSA)
16.  Civilian Labor Force and Unemployment Rate (SA)
17.  Taxable Sales (96$, NSA)
18.  Taxable Sales (96$, SA)
19.  Taxable Sales (Current$, NSA)
20.  Taxable Sales (Current$, SA)

*Key:  SA=Seasonally Adjusted;  NSA=Not Seasonally Adjusted
       SAAR=Seasonally Adjusted at Annual Rates




                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                     TABLE 1:  SELECTED U.S. AND TENNESSEE ECONOMIC INDICATORS
                                                        SEASONALLY ADJUSTED

                                  HISTORY                               FORECAST - DATA                                ANNUAL
                                   ------ --------------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 US GDP (BIL96$) SAAR............  9363.2 9387.9 9466.8 9546.4 9647.1 9721.9 9799.3 9888.5 9979.210057.310119.8 9214.5 9441.1 9764.2
   % CHG PREV QTR SAAR...........    5.04   1.06   3.40   3.41   4.28   3.14   3.22   3.69   3.72   3.17   2.51   0.25   2.46   3.42
   % CHG SAME QTR LAST YR........    1.44   2.12   3.05   3.22   3.03   3.56   3.51   3.58   3.44   3.45   3.27   0.25   2.46   3.42

 US GDP (BIL$) SAAR.............. 10313.110369.910516.810676.510881.911037.811201.011376.911553.811710.811851.510082.210469.111124.4
   % CHG PREV QTR SAAR...........    6.46   2.22   5.79   6.21   7.92   5.86   6.04   6.43   6.36   5.55   4.89   2.62   3.84   6.26
   % CHG SAME QTR LAST YR........    2.84   3.18   4.15   5.16   5.51   6.44   6.51   6.56   6.17   6.10   5.81   2.62   3.84   6.26

 IMPLICIT DEFLATOR,GDP...........   110.1  110.5  111.1  111.8  112.8  113.5  114.3  115.1  115.8  116.4  117.1  109.4  110.9  113.9
   % CHG PREV QTR SAAR...........    1.32   1.17   2.30   2.73   3.48   2.65   2.70   2.65   2.56   2.30   2.32   2.37   1.34   2.74
   % CHG SAME QTR LAST YR........    1.37   1.04   1.06   1.88   2.42   2.79   2.89   2.87   2.64   2.55   2.46   2.37   1.34   2.74

 US PERS CONS DEFL (1996=100)....   110.1  110.8  111.4  112.2  113.1  113.8  114.6  115.4  116.1  116.8  117.5  109.6  111.2  114.2
   % CHG PREV QTR SAAR...........    1.10   2.57   2.22   2.65   3.21   2.64   2.77   2.79   2.41   2.43   2.45   2.02   1.45   2.75
   % CHG SAME QTR LAST YR........    0.91   1.09   1.67   2.13   2.66   2.68   2.82   2.85   2.65   2.60   2.52   2.02   1.45   2.75

 TN PERSONAL INCOME (MIL96$) SAAR  141300 141119 141567 139898 141975 143658 143977 143037 145410 146603 147598 139362 140971 143162
   % CHG PREV QTR SAAR...........    7.50  -0.51   1.28  -4.63   6.07   4.83   0.89  -2.59   6.80   3.32   2.74   1.17   1.15   1.55
   % CHG SAME QTR LAST YR........    1.41   1.40   1.00   0.81   0.48   1.80   1.70   2.24   2.42   2.05   2.52   1.17   1.15   1.55

 US PERSONAL INCOME (BIL96$) SAAR  7999.3 8049.0 8108.9 8143.1 8188.9 8229.8 8269.0 8306.5 8382.9 8440.5 8493.3 7927.3 8075.1 8248.6
   % CHG PREV QTR SAAR...........    3.99   2.51   3.01   1.69   2.27   2.02   1.92   1.82   3.73   2.78   2.53   1.27   1.86   2.15
   % CHG SAME QTR LAST YR........    0.84   1.71   2.10   2.80   2.37   2.25   1.97   2.01   2.37   2.56   2.71   1.27   1.86   2.15

 TN PERSONAL INCOME (MIL$) SAAR..  155628 156417 157777 156937 160531 163497 164983 165036 168777 171188 173399 152689 156690 163512
   % CHG PREV QTR SAAR...........    8.68   2.04   3.52  -2.11   9.48   7.60   3.69   0.13   9.38   5.84   5.27   3.21   2.62   4.35
   % CHG SAME QTR LAST YR........    2.33   2.51   2.68   2.96   3.15   4.53   4.57   5.16   5.14   4.70   5.10   3.21   2.62   4.35

 US PERSONAL INCOME (BIL$) SAAR..  8810.4 8921.5 9037.4 9134.9 9259.2 9366.4 9475.5 9584.0 9730.1 9856.0 9977.9 8685.3 8976.0 9421.3
   % CHG PREV QTR SAAR...........    5.13   5.14   5.30   4.39   5.55   4.71   4.74   4.66   6.24   5.28   5.04   3.32   3.35   4.96
   % CHG SAME QTR LAST YR........    1.76   2.83   3.80   4.99   5.09   4.99   4.85   4.92   5.09   5.23   5.30   3.32   3.35   4.96

 TN NONAGRIC JOBS (THOUS)........  2718.8 2703.7 2699.4 2704.1 2724.5 2721.4 2731.4 2758.0 2769.7 2777.5 2781.2 2712.5 2706.5 2733.8
   % CHG PREV QTR SAAR...........    1.93  -2.21  -0.62   0.69   3.05  -0.45   1.48   3.95   1.71   1.13   0.54  -0.61  -0.22   1.01
   % CHG SAME QTR LAST YR........   -0.35  -0.21  -0.27  -0.06   0.21   0.66   1.18   1.99   1.66   2.06   1.82  -0.61  -0.22   1.01

 US NONAGRIC JOBS (MIL)..........   130.8  130.7  130.8  131.1  131.7  132.3  133.1  133.9  134.6  135.2  135.9  131.9  130.8  132.7
   % CHG PREV QTR SAAR...........   -1.12  -0.12   0.31   0.71   2.06   1.90   2.19   2.43   2.08   1.95   1.94   0.16  -0.82   1.46
   % CHG SAME QTR LAST YR........   -1.26  -1.11  -0.85  -0.06   0.73   1.24   1.71   2.14   2.15   2.16   2.10   0.16  -0.82   1.46

 TN UNEMPLOYMENT RATE (%)........     5.5    5.1    4.8    4.7    4.8    4.8    4.8    4.8    4.7    4.7    4.7    4.5    5.0    4.8

 US UNEMPLOYMENT RATE (%)........     5.6    5.9    6.0    6.1    6.1    6.0    5.9    5.7    5.6    5.4    5.2    4.8    5.9    5.9

 BANK PRIME INTEREST RATE (%)....     4.8    4.8    4.8    4.8    4.8    4.8    5.1    5.7    6.0    6.6    7.0    6.9    4.8    5.1

 TN MFG JOBS (THOUS).............   468.0  466.0  461.2  460.3  460.3  462.0  459.1  460.0  459.4  462.1  460.8  478.7  463.9  460.4
   % CHG PREV QTR SAAR...........   -1.72  -1.73  -4.04  -0.77   0.00   1.46  -2.47   0.79  -0.54   2.36  -1.11  -5.57  -3.10  -0.76
   % CHG SAME QTR LAST YR........   -4.68  -2.74  -2.85  -2.07  -1.65  -0.86  -0.46  -0.07  -0.20   0.02   0.37  -5.57  -3.10  -0.76


                                                      (CONTINUED ON NEXT PAGE)

                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                 TABLE 1:  SELECTED U.S. AND TENNESSEE ECONOMIC INDICATORS (CONT.)
                                                        SEASONALLY ADJUSTED

                                  HISTORY                               FORECAST - DATA                                ANNUAL
                                   ------ --------------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------

 TN TAXABLE SALES (MIL96$).......   17045  17015  16674  17410  17078  17151  17032  17774  17383  17295  17507  68039  68144  69036
   % CHG PREV QTR SAAR...........   -3.94  -0.72  -7.77  18.86  -7.40   1.71  -2.75  18.60  -8.51  -2.01   5.00  -2.14   0.15   1.31
   % CHG SAME QTR LAST YR........   -0.13  -0.33  -0.06   1.12   0.19   0.80   2.15   2.09   1.78   0.84   2.79  -2.14   0.15   1.31

 TN TAXABLE SALES (MIL$).........   18774  18859  18583  19530  19311  19520  19517  20508  20177  20195  20567  74546  75746  78855
   % CHG PREV QTR SAAR...........   -2.88   1.83  -5.72  22.00  -4.43   4.40  -0.05  21.90  -6.31   0.38   7.57  -0.16   1.61   4.10
   % CHG SAME QTR LAST YR........    0.78   0.77   1.60   3.27   2.86   3.50   5.03   5.00   4.48   3.46   5.38  -0.16   1.61   4.10

 TN AVG ANNUAL WAGE,NONAG (96$)..   28866  28973  29064  28642  28775  29436  29194  28748  29183  29431  29454  28928  28886  29038
   % CHG PREV QTR SAAR...........    2.87   1.50   1.25  -5.68   1.87   9.52  -3.25  -5.97   6.19   3.43   0.32   0.32  -0.15   0.53
   % CHG SAME QTR LAST YR........   -0.14   0.00  -0.37  -0.07  -0.31   1.60   0.45   0.37   1.42  -0.02   0.89   0.32  -0.15   0.53

 TN AVG ANNUAL WAGE,NONAG ($)....   31793  32114  32391  32131  32536  33502  33453  33170  33873  34366  34603  31694  32107  33165
   % CHG PREV QTR SAAR...........    4.00   4.11   3.50  -3.18   5.14  12.41  -0.58  -3.35   8.75   5.95   2.79   2.35   1.30   3.30
   % CHG SAME QTR LAST YR........    0.77   1.10   1.29   2.06   2.34   4.32   3.28   3.23   4.11   2.58   3.44   2.35   1.30   3.30


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
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                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                TABLE 2:  SELECTED PER CAPITA U.S. AND TENNESSEE ECONOMIC INDICATORS
                                                        SEASONALLY ADJUSTED

                                  HISTORY                               FORECAST - DATA                                ANNUAL
                                   ------ --------------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 US GDP (96$) SAAR...............   33654  33675  33891  34104  34392  34591  34800  35041  35292  35497  35648  33290  33831  34706
   % CHG PREV QTR SAAR...........    4.19   0.25   2.59   2.54   3.42   2.33   2.43   2.80   2.90   2.34   1.72  -0.57   1.63   2.59
   % CHG SAME QTR LAST YR........    0.62   1.29   2.22   2.38   2.19   2.72   2.68   2.75   2.62   2.62   2.44  -0.57   1.63   2.59

 US GDP ($) SAAR.................   37068  37197  37650  38141  38795  39274  39778  40315  40861  41333  41748  36424  37514  39540
   % CHG PREV QTR SAAR...........    5.59   1.40   4.96   5.32   7.03   5.03   5.23   5.51   5.52   4.70   4.08   1.78   2.99   5.40
   % CHG SAME QTR LAST YR........    2.00   2.35   3.31   4.30   4.66   5.58   5.65   5.70   5.33   5.24   4.95   1.78   2.99   5.40

 TN PERSONAL INCOME (96$) SAAR...   24482  24362  24370  24050  24332  24530  24511  24315  24637  24744  24915  24271  24316  24422
   % CHG PREV QTR SAAR...........    6.59  -1.96   0.14  -5.15   4.76   3.30  -0.31  -3.15   5.40   1.74   2.81   0.41   0.19   0.43
   % CHG SAME QTR LAST YR........    0.60   0.40  -0.07  -0.18  -0.62   0.69   0.58   1.10   1.25   0.87   1.65   0.41   0.19   0.43

 TN PERSONAL INCOME ($) SAAR.....   26965  27003  27161  26980  27512  27918  28087  28055  28596  28893  29271  26592  27027  27893
   % CHG PREV QTR SAAR...........    7.76   0.56   2.36  -2.64   8.13   6.03   2.45  -0.45   7.94   4.22   5.33   2.43   1.64   3.20
   % CHG SAME QTR LAST YR........    1.52   1.50   1.60   1.94   2.03   3.39   3.41   3.99   3.94   3.49   4.21   2.43   1.64   3.20

 US PERSONAL INCOME (96$) SAAR...   28752  28872  29030  29091  29194  29282  29365  29435  29647  29790  29919  28639  28936  29319
   % CHG PREV QTR SAAR...........    3.14   1.69   2.20   0.84   1.43   1.22   1.14   0.95   2.91   1.95   1.73   0.44   1.04   1.32
   % CHG SAME QTR LAST YR........    0.02   0.89   1.28   1.96   1.54   1.42   1.16   1.18   1.55   1.73   1.88   0.44   1.04   1.32

 US PERSONAL INCOME ($) SAAR.....   31667  32002  32354  32634  33009  33326  33650  33962  34411  34786  35148  31378  32164  33487
   % CHG PREV QTR SAAR...........    4.27   4.30   4.47   3.51   4.68   3.89   3.94   3.76   5.40   4.43   4.23   2.47   2.51   4.11
   % CHG SAME QTR LAST YR........    0.93   1.99   2.97   4.14   4.24   4.14   4.01   4.07   4.25   4.38   4.45   2.47   2.51   4.11

 TN TAXABLE SALES (96$)..........    2953   2937   2870   2993   2927   2929   2900   3021   2945   2919   2955  11850  11754  11777
   % CHG PREV QTR SAAR...........   -4.75  -2.16  -8.81  18.22  -8.55   0.23  -3.91  17.91  -9.72  -3.51   5.06  -2.88  -0.81   0.19
   % CHG SAME QTR LAST YR........   -0.92  -1.31  -1.12   0.12  -0.90  -0.29   1.02   0.95   0.63  -0.33   1.92  -2.88  -0.81   0.19

 TN TAXABLE SALES ($)............    3253   3256   3199   3358   3309   3333   3323   3486   3419   3409   3472  12983  13065  13451
   % CHG PREV QTR SAAR...........   -3.70   0.35  -6.78  21.35  -5.61   2.88  -1.25  21.20  -7.54  -1.16   7.64  -0.91   0.64   2.96
   % CHG SAME QTR LAST YR........   -0.02  -0.23   0.53   2.25   1.74   2.38   3.86   3.83   3.30   2.27   4.49  -0.91   0.64   2.96


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
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                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                         TABLE 3:  TENNESSEE PERSONAL INCOME BY COMPONENTS
                                                  SEASONALLY ADJUSTED ANNUAL RATES
                                                      MILLIONS OF 1996 DOLLARS

                                  HISTORY                               FORECAST - DATA                                ANNUAL
                                   ------ --------------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL PERSONAL INCOME............ 141300 141119 141567 139898 141975 143658 143977 143037 145410 146603 147598 139362 140971 143162
     % CHG PREV QTR SAAR..........   7.50  -0.51   1.28  -4.63   6.07   4.83   0.89  -2.59   6.80   3.32   2.74   1.17   1.15   1.55
     % CHG SAME QTR LAST YR.......   1.41   1.40   1.00   0.81   0.48   1.80   1.70   2.24   2.42   2.05   2.52   1.17   1.15   1.55

   WAGES AND SALARIES.............  79411  79273  79404  78408  79362  81082  80722  80277  81827  82752  82939  79281  79124  80361
     % CHG PREV QTR SAAR..........   5.16  -0.69   0.66  -4.92   4.96   8.95  -1.76  -2.19   7.95   4.60   0.91  -0.24  -0.20   1.56
     % CHG SAME QTR LAST YR.......  -0.30  -0.02  -0.45  -0.01  -0.06   2.28   1.66   2.38   3.11   2.06   2.75  -0.24  -0.20   1.56

   OTHER LABOR INCOME.............   8879   8669   9007   8811   8689   8620   8930   8988   9044   8905   9090   8725   8841   8806
     % CHG PREV QTR SAAR..........   8.20  -9.12  16.54  -8.43  -5.44  -3.12  15.16   2.62   2.54  -6.01   8.58   0.92   1.33  -0.40
     % CHG SAME QTR LAST YR.......   1.99  -0.41   2.53   1.21  -2.14  -0.56  -0.86   2.01   4.09   3.31   1.80   0.92   1.33  -0.40

   PROPRIETORS INCOME.............  14315  14471  14495  14065  13922  14520  14794  14677  14627  15510  15708  13969  14336  14478
     % CHG PREV QTR SAAR..........  10.86   4.41   0.66 -11.35  -3.99  18.33   7.75  -3.13  -1.35  26.42   5.21   0.68   2.63   0.99
     % CHG SAME QTR LAST YR.......   3.14   3.52   3.05   0.81  -2.75   0.34   2.06   4.35   5.06   6.82   6.18   0.68   2.63   0.99

   RENT INTEREST DIVIDENDS........  21213  21191  21129  20691  21909  21057  21178  20747  21671  21152  21305  21297  21056  21223
     % CHG PREV QTR SAAR..........   3.89  -0.42  -1.16  -8.04  25.72 -14.66   2.31  -7.90  19.05  -9.23   2.92  -0.04  -1.13   0.79
     % CHG SAME QTR LAST YR.......  -1.57  -0.64  -0.80  -1.53   3.28  -0.63   0.23   0.27  -1.09   0.45   0.60  -0.04  -1.13   0.79

   TRANSFER PAYMENTS..............  24799  24869  24855  25136  25386  25814  25783  25753  25748  25915  26219  23338  24915  25684
     % CHG PREV QTR SAAR..........  17.06   1.13  -0.24   4.61   4.03   6.91  -0.47  -0.47  -0.08   2.61   4.78   7.75   6.76   3.09
     % CHG SAME QTR LAST YR.......   8.64   7.57   5.47   5.43   2.37   3.80   3.74   2.45   1.43   0.39   1.69   7.75   6.76   3.09

   LESS:PERS CONT FOR SOC INS.....   6321   6328   6310   6190   6261   6405   6390   6359   6458   6575   6601   6223   6287   6354
     % CHG PREV QTR SAAR..........   9.78   0.42  -1.14  -7.37   4.65   9.51  -0.90  -1.91   6.36   7.45   1.57   1.53   1.03   1.06
     % CHG SAME QTR LAST YR.......   1.60   1.76   0.55   0.24  -0.95   1.21   1.28   2.74   3.15   2.66   3.30   1.53   1.03   1.06

   RESIDENCE ADJUSTMENT...........   -996  -1026  -1012  -1023  -1032  -1031  -1039  -1045  -1050  -1057  -1063  -1025  -1014  -1037
     % CHG PREV QTR SAAR..........   5.29  12.59  -5.28   4.28   3.66  -0.26   3.07   2.31   1.70   2.74   2.31  -4.40  -1.05   2.24
     % CHG SAME QTR LAST YR.......  -5.14  -0.72  -2.07   4.02   3.62   0.52   2.67   2.18   1.70   2.45   2.27  -4.40  -1.05   2.24


 PER CAPITA PERSONAL INCOME ($)...  24482  24362  24370  24050  24332  24530  24511  24315  24637  24744  24915  24271  24316  24422
     % CHG PREV QTR SAAR..........   6.59  -1.96   0.14  -5.15   4.76   3.30  -0.31  -3.15   5.40   1.74   2.81   0.41   0.19   0.43
     % CHG SAME QTR LAST YR.......   0.60   0.40  -0.07  -0.18  -0.62   0.69   0.58   1.10   1.25   0.87   1.65   0.41   0.19   0.43


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
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                                         TABLE 4:  TENNESSEE PERSONAL INCOME BY COMPONENTS
                                                  SEASONALLY ADJUSTED ANNUAL RATES
                                                    MILLIONS OF CURRENT DOLLARS

                                  HISTORY                               FORECAST - DATA                                ANNUAL
                                   ------ --------------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL PERSONAL INCOME............ 155628 156417 157777 156937 160531 163497 164983 165036 168777 171188 173399 152689 156690 163512
     % CHG PREV QTR SAAR..........   8.68   2.04   3.52  -2.11   9.48   7.60   3.69   0.13   9.38   5.84   5.27   3.21   2.62   4.35
     % CHG SAME QTR LAST YR.......   2.33   2.51   2.68   2.96   3.15   4.53   4.57   5.16   5.14   4.70   5.10   3.21   2.62   4.35

   WAGES AND SALARIES.............  87463  87867  88496  87958  89735  92279  92499  92624  94977  96630  97437  86862  87946  91784
     % CHG PREV QTR SAAR..........   6.32   1.86   2.89  -2.41   8.33  11.84   0.96   0.54  10.56   7.14   3.39   1.77   1.25   4.36
     % CHG SAME QTR LAST YR.......   0.61   1.07   1.21   2.12   2.60   5.02   4.52   5.30   5.84   4.71   5.34   1.77   1.25   4.36

   OTHER LABOR INCOME.............   9779   9609  10038   9884   9824   9810  10232  10370  10498  10399  10679   9560   9827  10059
     % CHG PREV QTR SAAR..........   9.39  -6.79  19.12  -6.01  -2.40  -0.56  18.34   5.48   5.02  -3.72  11.24   2.96   2.80   2.36
     % CHG SAME QTR LAST YR.......   2.92   0.68   4.24   3.37   0.46   2.10   1.93   4.92   6.85   5.99   4.37   2.96   2.80   2.36

   PROPRIETORS INCOME.............  15767  16039  16154  15778  15742  16526  16952  16934  16977  18111  18454  15305  15935  16538
     % CHG PREV QTR SAAR..........  12.07   7.09   2.90  -9.01  -0.91  21.46  10.73  -0.43   1.03  29.50   7.79   2.71   4.12   3.79
     % CHG SAME QTR LAST YR.......   4.08   4.65   4.77   2.96  -0.16   3.03   4.94   7.33   7.85   9.59   8.86   2.71   4.12   3.79

   RENT INTEREST DIVIDENDS........  23364  23488  23548  23211  24772  23965  24267  23937  25153  24700  25029  23333  23403  24236
     % CHG PREV QTR SAAR..........   5.03   2.13   1.03  -5.61  29.75 -12.41   5.14  -5.33  21.92  -7.02   5.44   1.97   0.30   3.56
     % CHG SAME QTR LAST YR.......  -0.68   0.45   0.86   0.57   6.03   2.03   3.06   3.13   1.54   3.06   3.14   1.97   0.30   3.56

   TRANSFER PAYMENTS..............  27314  27565  27700  28198  28704  29379  29545  29714  29886  30261  30802  25571  27694  29336
     % CHG PREV QTR SAAR..........  18.34   3.73   1.98   7.38   7.38   9.74   2.28   2.31   2.33   5.11   7.35   9.92   8.31   5.93
     % CHG SAME QTR LAST YR.......   9.63   8.75   7.23   7.68   5.09   6.58   6.66   5.38   4.12   3.00   4.25   9.92   8.31   5.93

   LESS:PERS CONT FOR SOC INS.....   6962   7014   7032   6944   7079   7289   7322   7337   7496   7678   7755   6818   6988   7257
     % CHG PREV QTR SAAR..........  10.98   3.00   1.05  -4.92   8.01  12.41   1.85   0.82   8.93  10.06   4.06   3.59   2.50   3.85
     % CHG SAME QTR LAST YR.......   2.52   2.87   2.22   2.37   1.68   3.93   4.13   5.67   5.89   5.33   5.90   3.59   2.50   3.85

   RESIDENCE ADJUSTMENT...........  -1097  -1137  -1128  -1147  -1167  -1174  -1191  -1206  -1218  -1234  -1248  -1123  -1127  -1184
     % CHG PREV QTR SAAR..........   6.45  15.48  -3.18   7.04   6.99   2.38   5.92   5.16   4.16   5.24   4.82  -2.48   0.39   5.05
     % CHG SAME QTR LAST YR.......  -4.28   0.37  -0.44   6.24   6.37   3.22   5.56   5.10   4.39   5.12   4.84  -2.48   0.39   5.05


 PER CAPITA PERSONAL INCOME ($)...  26965  27003  27161  26980  27512  27918  28087  28055  28596  28893  29271  26592  27027  27893
     % CHG PREV QTR SAAR..........   7.76   0.56   2.36  -2.64   8.13   6.03   2.45  -0.45   7.94   4.22   5.33   2.43   1.64   3.20
     % CHG SAME QTR LAST YR.......   1.52   1.50   1.60   1.94   2.03   3.39   3.41   3.99   3.94   3.49   4.21   2.43   1.64   3.20


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]

                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                      TABLE 5:  TENNESSEE NONAGRICULTURAL EMPLOYMENT BY SECTOR
                                                         THOUSANDS OF JOBS

                                      HISTORY                           FORECAST - DATA                                ANNUAL
                                   ------------- -------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL NONAGRICULTURAL...........  2687.3 2708.9 2700.7 2728.7 2692.8 2726.6 2732.8 2783.0 2736.9 2782.8 2783.2 2711.5 2706.4 2733.8
       % CHG SAME QTR LAST YR....   -0.27  -0.17  -0.26  -0.06   0.20   0.66   1.19   1.99   1.64   2.06   1.84  -0.64  -0.19   1.01

   MINING........................     3.6    3.7    3.7    3.6    3.6    3.6    3.7    3.6    3.5    3.6    3.6    4.0    3.7    3.6
       % CHG SAME QTR LAST YR....   -7.69  -9.76  -9.44  -6.69  -1.11  -1.47  -1.44  -1.41  -1.38  -1.35  -1.33  -3.03  -8.42  -1.36

   CONSTRUCTION..................   115.6  120.0  121.6  120.1  115.7  122.1  124.2  122.8  119.8  126.9  128.4  121.2  119.3  121.2
       % CHG SAME QTR LAST YR....   -1.89  -1.80  -1.88  -0.69   0.04   1.68   2.14   2.23   3.57   3.93   3.33  -2.98  -1.57   1.54

   MANUFACTURING.................   467.1  466.4  461.0  461.0  459.4  462.3  458.9  460.7  458.5  462.4  460.6  478.5  463.9  460.3
       % CHG SAME QTR LAST YR....   -4.45  -2.80  -2.84  -2.07  -1.65  -0.87  -0.45  -0.07  -0.20   0.02   0.37  -5.58  -3.05  -0.76

     DURABLE GOODS...............   274.3  273.6  272.0  271.6  271.1  275.4  274.9  275.6  274.9  279.1  279.1  281.3  272.9  274.2
       % CHG SAME QTR LAST YR....   -4.95  -3.36  -2.12  -1.53  -1.18   0.65   1.06   1.49   1.41   1.37   1.54  -6.49  -3.01   0.50

     NONDURABLE GOODS............   192.8  192.8  189.0  189.5  188.3  187.0  184.0  185.1  183.6  183.3  181.5  197.1  191.0  186.1
       % CHG SAME QTR LAST YR....   -3.71  -2.00  -3.87  -2.83  -2.32  -3.01  -2.64  -2.30  -2.51  -1.96  -1.38  -4.27  -3.10  -2.57

   TRADE.........................   627.9  633.5  638.5  656.1  633.5  645.3  654.6  672.2  652.5  663.6  671.2  638.5  639.0  651.4
       % CHG SAME QTR LAST YR....   -0.37  -0.41   0.10   0.95   0.89   1.86   2.52   2.46   3.00   2.84   2.54  -0.51   0.07   1.94

   SERVICES......................   759.4  773.3  778.8  771.7  768.4  779.3  789.8  802.8  795.7  807.5  815.5  754.9  770.8  785.1
       % CHG SAME QTR LAST YR....    2.78   2.36   2.10   1.22   1.19   0.78   1.42   4.03   3.55   3.62   3.25   1.63   2.11   1.86

   FIN,INS,REAL EST..............   132.5  132.4  133.4  133.6  132.6  133.7  133.9  133.3  132.7  134.3  135.6  132.3  133.0  133.4
       % CHG SAME QTR LAST YR....    1.45   0.13   0.04   0.33   0.04   1.01   0.45  -0.18   0.10   0.44   1.22   1.05   0.48   0.33

   TRANS,COMM,PUB UTIL...........   173.9  174.0  172.8  173.1  172.6  175.3  174.8  174.8  168.7  177.9  178.1  179.8  173.4  174.4
       % CHG SAME QTR LAST YR....   -3.10  -3.08  -4.11  -3.98  -0.73   0.73   1.18   1.02  -2.25   1.49   1.89   0.77  -3.57   0.55

   GOVERNMENT....................   407.3  405.6  391.0  409.5  407.1  405.0  392.9  412.8  405.5  406.6  390.2  402.2  403.3  404.4
       % CHG SAME QTR LAST YR....    0.63   0.41  -0.06   0.12  -0.07  -0.15   0.49   0.80  -0.39   0.40  -0.67   0.81   0.28   0.27

     FEDERAL,CIVILIAN............    50.5   50.7   50.3   49.9   50.5   51.3   50.6   50.2   50.8   51.6   50.9   51.1   50.4   50.6
       % CHG SAME QTR LAST YR....   -2.07  -2.37  -1.57  -0.08  -0.03   1.10   0.52   0.61   0.65   0.61   0.62  -4.66  -1.54   0.55

     STATE AND LOCAL.............   356.8  354.9  340.6  359.6  356.6  353.7  342.3  362.6  354.6  355.0  339.3  351.1  353.0  353.8
       % CHG SAME QTR LAST YR....    1.02   0.82   0.17   0.15  -0.07  -0.33   0.48   0.83  -0.54   0.37  -0.87   1.66   0.54   0.23


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]

                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                     TABLE 6:  TENNESSEE DURABLE GOODS MANUFACTURING EMPLOYMENT
                                                         THOUSANDS OF JOBS

                                      HISTORY                           FORECAST - DATA                                ANNUAL
                                   ------------- -------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL DURABLE GOODS.............   274.3  273.6  272.0  271.6  271.1  275.4  274.9  275.6  274.9  279.1  279.1  281.3  272.9  274.2
     % CHG SAME QTR LAST YR......   -4.95  -3.36  -2.12  -1.53  -1.18   0.65   1.06   1.49   1.41   1.37   1.54  -6.49  -3.01   0.50

   LUMBER AND WOOD...............    22.1   22.2   22.8   22.7   22.4   22.9   23.0   22.9   22.7   23.0   23.4   22.1   22.4   22.8
     % CHG SAME QTR LAST YR......   -0.30   0.00   2.70   2.49   1.22   3.20   1.15   1.21   1.35   0.34   1.62  -7.23   1.22   1.69

   FURNITURE AND FIXTURES........    22.6   22.8   22.4   22.6   22.1   22.7   22.8   22.9   22.7   23.4   23.0   23.6   22.6   22.6
     % CHG SAME QTR LAST YR......  -10.78  -5.14  -0.98  -0.10  -2.21  -0.44   1.52   1.62   2.52   3.17   1.11 -12.35  -4.45   0.12

   STONE,CLAY AND GLASS..........    16.3   16.2   16.3   16.2   16.1   16.3   16.4   16.4   16.4   16.7   16.8   16.6   16.3   16.3
     % CHG SAME QTR LAST YR......   -1.61  -2.40  -2.30  -1.98  -0.82   0.57   0.66   1.10   1.80   2.32   2.09  -1.77  -2.08   0.38

   PRIMARY METALS................    15.3   14.5   14.1   13.8   13.5   14.6   14.4   14.1   13.8   14.9   14.9   16.4   14.4   14.2
     % CHG SAME QTR LAST YR......  -11.07 -11.92 -12.34 -12.86 -11.47   0.72   1.58   2.33   1.92   1.71   3.48  -7.81 -12.03  -1.91

   FABRICATED METALS.............    43.9   43.9   43.2   43.7   43.7   44.1   44.4   44.7   44.7   44.8   45.3   44.9   43.7   44.2
     % CHG SAME QTR LAST YR......   -4.50  -2.51  -3.27  -0.79  -0.55   0.30   2.70   2.31   2.34   1.64   2.15  -5.49  -2.79   1.18

   NONELECTRICAL MACHINERY.......    48.3   47.9   46.4   45.7   46.5   47.3   45.9   45.6   46.2   47.3   45.7   49.3   47.1   46.3
     % CHG SAME QTR LAST YR......   -4.86  -4.64  -4.01  -4.86  -3.89  -1.15  -1.08  -0.10  -0.50  -0.16  -0.45  -3.91  -4.60  -1.58

   ELECTRICAL MACHINERY..........    35.0   34.9   34.9   35.0   35.0   35.4   35.4   35.6   35.5   36.1   35.9   36.2   35.0   35.4
     % CHG SAME QTR LAST YR......   -6.75  -3.85  -2.02  -1.10   0.00   1.28   1.43   1.69   1.46   1.91   1.36 -10.13  -3.48   1.10

   TRANSPORTATION EQUIPMENT......    49.9   50.2   51.0   51.3   50.6   50.8   51.7   52.2   51.3   51.5   52.6   51.1   50.6   51.3
     % CHG SAME QTR LAST YR......   -3.86  -1.76   0.35   1.80   1.42   1.29   1.28   1.59   1.48   1.44   1.70  -6.34  -0.89   1.39

   INSTRUMENTS...................    11.3   11.3   11.4   11.4   11.4   11.5   11.6   11.6   11.7   11.7   11.8   11.1   11.3   11.6
     % CHG SAME QTR LAST YR......    1.50   1.50   2.53   1.43   1.61   2.03   1.81   1.87   1.90   1.90   1.92   2.45   1.74   1.83

   MISCELLANEOUS.................     9.7    9.7    9.4    9.1    9.8    9.7    9.3    9.4    9.9    9.8    9.7    9.8    9.5    9.6
     % CHG SAME QTR LAST YR......   -4.29  -3.01  -2.45  -3.92   1.01   0.63  -0.79   3.51   1.40   0.81   4.75  -8.20  -3.42   1.07


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]
                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                   TABLE 7:  TENNESSEE NONDURABLE GOODS MANUFACTURING EMPLOYMENT
                                                         THOUSANDS OF JOBS

                                      HISTORY                           FORECAST - DATA                                ANNUAL
                                   ------------- -------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL NONDURABLE GOODS..........   192.8  192.8  189.0  189.5  188.3  187.0  184.0  185.1  183.6  183.3  181.5  197.1  191.0  186.1
     % CHG SAME QTR LAST YR......   -3.71  -2.00  -3.87  -2.83  -2.32  -3.01  -2.64  -2.30  -2.51  -1.96  -1.38  -4.27  -3.10  -2.57

   FOOD..........................    41.0   41.0   41.3   41.3   40.9   41.3   41.4   41.4   41.1   41.4   41.5   40.8   41.1   41.3
     % CHG SAME QTR LAST YR......    2.59   1.15  -0.12  -0.27  -0.13   0.72   0.27   0.35   0.38   0.35   0.36   2.77   0.82   0.30

   TOBACCO.......................     1.1    1.1    1.1    1.1    1.2    1.1    1.1    1.1    1.2    1.1    1.1    1.0    1.1    1.1
     % CHG SAME QTR LAST YR......   -5.71  10.00   9.68   9.68   6.25   0.00   0.00   0.00   0.00   0.00   0.00  -3.85   5.45   1.56

   TEXTILES......................    12.9   12.7   12.2   11.8   11.4   11.0   11.4   11.3   10.9   10.6   10.4   13.8   12.4   11.3
     % CHG SAME QTR LAST YR......  -10.02  -8.39 -10.91 -10.09 -11.48 -13.52  -6.94  -4.30  -4.05  -3.91  -8.48 -11.47  -9.85  -9.18

   APPAREL.......................    17.3   17.1   16.5   16.2   15.6   15.6   15.0   14.7   14.0   14.7   12.8   18.9   16.8   15.2
     % CHG SAME QTR LAST YR......  -14.89 -10.47  -9.96  -9.47 -10.00  -8.67  -9.34  -9.30 -10.23  -5.64 -14.61 -13.94 -11.30  -9.33

   PAPER.........................    22.2   22.6   22.8   22.0   22.4   22.2   22.2   21.7   22.2   22.0   22.5   22.0   22.4   22.1
     % CHG SAME QTR LAST YR......    1.68   3.35   2.51  -0.83   1.10  -1.78  -2.66  -1.62  -1.00  -0.95   1.65   0.76   1.67  -1.25

   PRINTING AND PUBLISHING.......    34.8   34.6   34.9   35.0   34.6   34.5   34.8   34.7   34.3   34.2   34.7   36.1   34.8   34.6
     % CHG SAME QTR LAST YR......   -5.26  -3.80  -3.34  -1.77  -0.51  -0.48  -0.31  -0.90  -0.82  -0.67  -0.39  -4.05  -3.55  -0.55

   CHEMICALS.....................    27.2   27.0   26.5   26.4   26.2   25.3   25.3   24.8   24.8   23.7   25.0   27.6   26.8   25.4
     % CHG SAME QTR LAST YR......   -3.66  -1.22  -2.70  -3.60  -3.93  -6.26  -4.56  -5.73  -5.16  -6.39  -1.10  -3.33  -2.80  -5.12

   PETROLEUM REFINING............     1.2    1.2    1.2    1.2    1.2    1.3    1.3    1.3    1.2    1.3    1.3    1.2    1.2    1.3
     % CHG SAME QTR LAST YR......    9.09  -7.69  -5.78  -3.34  -0.57   4.81   5.11   4.77   4.23   3.90  -0.32   2.76  -2.36   3.54

   RUBBER AND PLASTICS...........    33.2   33.4   30.7   32.7   33.1   32.7   29.8   32.3   32.2   32.3   30.3   33.5   32.5   32.0
     % CHG SAME QTR LAST YR......   -2.54   0.10  -7.99  -1.25  -0.46  -2.31  -2.75  -1.15  -2.78  -1.13   1.62  -5.35  -2.92  -1.65

   LEATHER.......................     1.9    1.9    1.9    1.7    1.7    2.0    1.9    1.7    1.6    1.9    1.9    2.2    1.8    1.8
     % CHG SAME QTR LAST YR......  -23.29 -13.64  -9.89 -11.45  -6.55   4.08  -0.13   1.04  -6.27  -6.21   1.97 -27.58 -14.95  -0.40


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]
                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                      TABLE 8:  TENNESSEE NONAGRICULTURAL EMPLOYMENT BY SECTOR
                                               THOUSANDS OF SEASONALLY ADJUSTED JOBS

                                      HISTORY                           FORECAST - DATA                                ANNUAL
                                   ------------- -------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL NONAGRICULTURAL...........  2718.8 2703.7 2699.4 2704.1 2724.5 2721.4 2731.4 2758.0 2769.7 2777.5 2781.2 2712.5 2706.5 2733.8
       % CHG PREV QTR SAAR.......    1.93  -2.21  -0.62   0.69   3.05  -0.45   1.48   3.95   1.71   1.13   0.54  -0.61  -0.22   1.01
       % CHG SAME QTR LAST YR....   -0.35  -0.21  -0.27  -0.06   0.21   0.66   1.18   1.99   1.66   2.06   1.82  -0.61  -0.22   1.01

   MINING........................     3.7    3.7    3.7    3.6    3.6    3.6    3.6    3.6    3.6    3.6    3.6    4.0    3.7    3.6
       % CHG PREV QTR SAAR.......  -21.87   0.00  -1.51  -1.48  -1.45  -1.42  -1.40  -1.37  -1.34  -1.31  -1.29  -3.04  -8.40  -1.36
       % CHG SAME QTR LAST YR....   -7.56  -9.84  -9.44  -6.69  -1.11  -1.47  -1.44  -1.41  -1.38  -1.35  -1.33  -3.04  -8.40  -1.36

   CONSTRUCTION..................   122.4  118.7  117.8  119.2  122.5  120.7  120.3  121.9  126.8  125.5  124.3  121.2  119.5  121.3
       % CHG PREV QTR SAAR.......    8.24 -11.55  -3.18   4.94  11.45  -5.59  -1.42   5.32  17.37  -4.25  -3.69  -3.05  -1.40   1.51
       % CHG SAME QTR LAST YR....   -0.97  -2.06  -1.88  -0.69   0.04   1.68   2.14   2.23   3.57   3.93   3.33  -3.05  -1.40   1.51

   MANUFACTURING.................   468.0  466.0  461.2  460.3  460.3  462.0  459.1  460.0  459.4  462.1  460.8  478.7  463.9  460.4
       % CHG PREV QTR SAAR.......   -1.72  -1.73  -4.04  -0.77   0.00   1.46  -2.47   0.79  -0.54   2.36  -1.11  -5.57  -3.10  -0.76
       % CHG SAME QTR LAST YR....   -4.68  -2.74  -2.85  -2.07  -1.65  -0.86  -0.46  -0.07  -0.20   0.02   0.37  -5.57  -3.10  -0.76

     DURABLE GOODS...............   274.5  273.0  272.5  271.2  271.3  274.8  275.4  275.3  275.1  278.6  279.6  281.3  272.8  274.2
       % CHG PREV QTR SAAR.......   -1.35  -2.12  -0.74  -1.90   0.09   5.30   0.87  -0.21  -0.22   5.14   1.54  -6.50  -3.03   0.50
       % CHG SAME QTR LAST YR....   -5.15  -3.20  -2.13  -1.53  -1.17   0.65   1.05   1.49   1.41   1.37   1.54  -6.50  -3.03   0.50

     NONDURABLE GOODS............   193.5  193.0  188.7  189.1  189.0  187.2  183.7  184.8  184.3  183.5  181.2  197.4  191.1  186.2
       % CHG PREV QTR SAAR.......   -2.24  -1.17  -8.56   0.88  -0.13  -3.87  -7.22   2.31  -1.01  -1.68  -5.02  -4.21  -3.20  -2.56
       % CHG SAME QTR LAST YR....   -4.00  -2.08  -3.87  -2.84  -2.32  -2.99  -2.64  -2.29  -2.51  -1.96  -1.38  -4.21  -3.20  -2.56

   TRADE.........................   639.7  635.3  635.9  643.8  645.4  647.1  652.0  659.6  664.8  665.5  668.5  638.2  638.7  651.0
       % CHG PREV QTR SAAR.......    1.28  -2.76   0.42   5.01   1.06   1.02   3.06   4.76   3.19   0.40   1.87  -0.57   0.07   1.93
       % CHG SAME QTR LAST YR....   -0.34  -0.40   0.10   0.95   0.89   1.86   2.52   2.46   3.00   2.84   2.54  -0.57   0.07   1.93

   SERVICES......................   772.5  769.4  772.3  768.6  781.7  775.4  783.2  799.5  809.5  803.5  808.7  755.4  770.7  785.0
       % CHG PREV QTR SAAR.......    7.14  -1.60   1.50  -1.90   7.00  -3.18   4.09   8.60   5.07  -2.93   2.61   1.71   2.03   1.85
       % CHG SAME QTR LAST YR....    2.44   2.34   2.10   1.22   1.19   0.78   1.42   4.03   3.55   3.62   3.25   1.71   2.03   1.85

   FIN,INS,REAL EST..............   133.4  132.2  132.7  133.5  133.5  133.5  133.3  133.2  133.6  134.1  134.9  132.3  132.9  133.4
       % CHG PREV QTR SAAR.......    1.21  -3.74   1.67   2.29   0.05   0.06  -0.58  -0.26   1.19   1.41   2.56   1.05   0.47   0.33
       % CHG SAME QTR LAST YR....    1.47   0.05   0.04   0.33   0.04   1.01   0.45  -0.18   0.10   0.44   1.22   1.05   0.47   0.33

   TRANS,COMM,PUB UTIL...........   175.4  173.6  172.2  172.7  174.1  174.8  174.2  174.4  170.2  177.4  177.5  180.2  173.5  174.4
       % CHG PREV QTR SAAR.......   -9.43  -4.19  -3.09   1.07   3.46   1.57  -1.32   0.44  -9.32  18.05   0.24   0.98  -3.73   0.54
       % CHG SAME QTR LAST YR....   -3.29  -3.52  -4.11  -3.98  -0.73   0.73   1.18   1.02  -2.25   1.49   1.89   0.98  -3.73   0.54

   GOVERNMENT....................   403.6  404.9  403.6  402.5  403.3  404.2  405.6  405.7  401.7  405.9  402.9  402.5  403.6  404.7
       % CHG PREV QTR SAAR.......    1.60   1.29  -1.20  -1.17   0.83   0.95   1.36   0.07  -3.86   4.20  -2.94   0.84   0.29   0.27
       % CHG SAME QTR LAST YR....    0.67   0.41  -0.05   0.12  -0.07  -0.15   0.49   0.80  -0.39   0.40  -0.68   0.84   0.29   0.27

     FEDERAL,CIVILIAN............    50.5   50.0   50.4   50.4   50.5   50.5   50.6   50.7   50.8   50.9   50.9   51.1   50.3   50.6
       % CHG PREV QTR SAAR.......    0.26  -3.65   2.93   0.24   0.46   0.78   0.58   0.62   0.63   0.61   0.61  -4.69  -1.54   0.55
       % CHG SAME QTR LAST YR....   -1.82  -2.66  -1.57  -0.08  -0.03   1.10   0.52   0.61   0.65   0.61   0.62  -4.69  -1.54   0.55

     STATE AND LOCAL.............   353.1  354.9  353.3  352.1  352.8  353.7  355.0  355.0  350.9  355.0  351.9  351.4  353.3  354.1
       % CHG PREV QTR SAAR.......    1.79   2.02  -1.77  -1.38   0.88   0.98   1.48  -0.01  -4.49   4.73  -3.44   1.70   0.55   0.23
       % CHG SAME QTR LAST YR....    1.04   0.86   0.17   0.15  -0.07  -0.33   0.48   0.83  -0.54   0.37  -0.87   1.70   0.55   0.23

     STATISTICAL DISCREPANCY.....     0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0
                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]
                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                     TABLE 9:  TENNESSEE DURABLE GOODS MANUFACTURING EMPLOYMENT
                                               THOUSANDS OF SEASONALLY ADJUSTED JOBS

                                      HISTORY                           FORECAST - DATA                                ANNUAL
                                   ------------- -------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL DURABLE GOODS.............   274.5  273.0  272.5  271.2  271.3  274.8  275.4  275.3  275.1  278.6  279.6  281.3  272.8  274.2
     % CHG PREV QTR SAAR.........   -1.35  -2.12  -0.74  -1.90   0.09   5.30   0.87  -0.21  -0.22   5.14   1.54  -6.50  -3.03   0.50
     % CHG SAME QTR LAST YR......   -5.15  -3.20  -2.13  -1.53  -1.17   0.65   1.05   1.49   1.41   1.37   1.54  -6.50  -3.03   0.50

   LUMBER AND WOOD...............    22.3   22.2   22.6   22.6   22.6   22.9   22.9   22.9   22.9   23.0   23.3   22.2   22.4   22.8
     % CHG PREV QTR SAAR.........    5.56  -2.37   7.95  -0.81   0.42   5.47  -0.38  -0.58   1.01   1.33   4.80  -7.19   1.18   1.69
     % CHG SAME QTR LAST YR......   -0.59   0.15   2.70   2.49   1.22   3.20   1.15   1.21   1.35   0.34   1.62  -7.19   1.18   1.69

   FURNITURE AND FIXTURES........    22.7   22.6   22.7   22.5   22.2   22.5   23.0   22.9   22.7   23.2   23.3   23.7   22.6   22.6
     % CHG PREV QTR SAAR.........    2.39  -1.75   1.94  -2.87  -5.98   5.52  10.22  -2.49  -2.60   8.23   1.66 -12.21  -4.52   0.12
     % CHG SAME QTR LAST YR......  -10.88  -5.31  -0.98  -0.10  -2.21  -0.44   1.52   1.62   2.52   3.17   1.11 -12.21  -4.52   0.12

   STONE,CLAY AND GLASS..........    16.4   16.2   16.2   16.2   16.2   16.3   16.3   16.4   16.5   16.6   16.7   16.6   16.2   16.3
     % CHG PREV QTR SAAR.........   -4.74  -4.80   1.26   0.52  -0.14   0.64   1.64   2.26   2.66   2.72   0.75  -1.97  -2.08   0.38
     % CHG SAME QTR LAST YR......   -1.80  -2.22  -2.30  -1.98  -0.82   0.57   0.66   1.10   1.80   2.32   2.09  -1.97  -2.08   0.38

   PRIMARY METALS................    15.2   14.5   14.2   13.8   13.5   14.6   14.4   14.1   13.7   14.9   14.9   16.4   14.4   14.2
     % CHG PREV QTR SAAR.........  -13.59 -17.15  -8.82 -11.66  -7.96  38.83  -5.70  -9.00  -9.45  37.70   1.05  -7.85 -12.12  -1.90
     % CHG SAME QTR LAST YR......  -11.26 -12.10 -12.34 -12.86 -11.47   0.72   1.58   2.33   1.92   1.71   3.48  -7.85 -12.12  -1.90

   FABRICATED METALS.............    43.9   44.0   43.2   43.6   43.7   44.1   44.4   44.6   44.7   44.9   45.3   45.0   43.7   44.2
     % CHG PREV QTR SAAR.........    0.30   0.61  -7.03   3.27   1.28   4.08   2.21   1.71   1.39   1.25   4.28  -5.48  -2.84   1.18
     % CHG SAME QTR LAST YR......   -4.77  -2.44  -3.27  -0.79  -0.55   0.30   2.70   2.31   2.34   1.64   2.15  -5.48  -2.84   1.18

   NONELECTRICAL MACHINERY.......    47.8   47.7   47.2   45.8   45.9   47.2   46.7   45.7   45.7   47.1   46.5   49.4   47.1   46.4
     % CHG PREV QTR SAAR.........   -2.74  -0.83  -3.90 -11.60   1.29  10.96  -3.62  -8.06  -0.32  12.51  -4.73  -3.66  -4.53  -1.57
     % CHG SAME QTR LAST YR......   -4.78  -4.47  -4.01  -4.86  -3.89  -1.15  -1.08  -0.10  -0.50  -0.16  -0.45  -3.66  -4.53  -1.57

   ELECTRICAL MACHINERY..........    35.2   34.8   34.8   34.9   35.2   35.2   35.3   35.5   35.7   35.9   35.8   36.3   34.9   35.3
     % CHG PREV QTR SAAR.........   -1.87  -4.11  -0.19   1.88   2.55   0.91   0.39   2.93   1.63   2.69  -1.76 -10.04  -3.75   1.10
     % CHG SAME QTR LAST YR......   -7.21  -4.40  -2.02  -1.10   0.00   1.28   1.43   1.69   1.46   1.91   1.36 -10.04  -3.75   1.10

   TRANSPORTATION EQUIPMENT......    50.0   50.2   50.8   51.3   50.7   50.8   51.5   52.1   51.5   51.6   52.4   50.9   50.6   51.3
     % CHG PREV QTR SAAR.........   -2.60   1.29   5.27   3.41  -4.05   0.76   5.23   4.67  -4.45   0.61   6.32  -6.66  -0.74   1.39
     % CHG SAME QTR LAST YR......   -4.10  -0.91   0.35   1.80   1.42   1.29   1.28   1.59   1.48   1.44   1.70  -6.66  -0.74   1.39

   INSTRUMENTS...................    11.3   11.3   11.4   11.4   11.5   11.5   11.6   11.6   11.7   11.7   11.8   11.1   11.3   11.5
     % CHG PREV QTR SAAR.........    1.10   0.23   2.75   1.65   1.80   1.93   1.86   1.90   1.91   1.92   1.94   2.10   1.89   1.83
     % CHG SAME QTR LAST YR......    1.22   2.39   2.53   1.43   1.61   2.03   1.81   1.87   1.90   1.90   1.92   2.10   1.89   1.83

   MISCELLANEOUS.................     9.7    9.6    9.4    9.2    9.8    9.7    9.3    9.5    9.9    9.7    9.8    9.8    9.5    9.6
     % CHG PREV QTR SAAR.........    7.18  -4.06  -8.17  -9.74  30.93  -5.51 -13.26   6.98  20.55  -7.69   1.14  -8.27  -3.42   1.07
     % CHG SAME QTR LAST YR......   -4.28  -3.03  -2.45  -3.92   1.01   0.63  -0.79   3.51   1.40   0.81   4.75  -8.27  -3.42   1.07

   STATISTICAL DISCREPANCY.......     0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]
                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                   TABLE 10:  TENNESSEE NONDURABLE GOODS MANUFACTURING EMPLOYMENT
                                               THOUSANDS OF SEASONALLY ADJUSTED JOBS

                                      HISTORY                           FORECAST - DATA                                ANNUAL
                                   ------------- -------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL NONDURABLE GOODS..........   193.5  193.0  188.7  189.1  189.0  187.2  183.7  184.8  184.3  183.5  181.2  197.4  191.1  186.2
     % CHG PREV QTR SAAR.........   -2.24  -1.17  -8.56   0.88  -0.13  -3.87  -7.22   2.31  -1.01  -1.68  -5.02  -4.21  -3.20  -2.56
     % CHG SAME QTR LAST YR......   -4.00  -2.08  -3.87  -2.84  -2.32  -2.99  -2.64  -2.29  -2.51  -1.96  -1.38  -4.21  -3.20  -2.56

   FOOD..........................    41.3   41.0   41.2   41.2   41.2   41.3   41.3   41.3   41.4   41.4   41.4   40.9   41.2   41.3
     % CHG PREV QTR SAAR.........   -0.32  -2.88   2.15   0.04   0.24   0.48   0.32   0.36   0.36   0.35   0.35   3.02   0.66   0.30
     % CHG SAME QTR LAST YR......    2.23   0.82  -0.12  -0.27  -0.13   0.72   0.27   0.35   0.38   0.35   0.36   3.02   0.66   0.30

   TOBACCO.......................     1.1    1.1    1.1    1.1    1.1    1.1    1.1    1.1    1.1    1.1    1.1    1.0    1.1    1.1
     % CHG PREV QTR SAAR.........   13.54  27.44   0.00   0.00   0.00   0.00   0.00   0.00   0.00   0.00   0.00  -7.52   8.94   1.49
     % CHG SAME QTR LAST YR......    6.67   9.68   9.68   9.68   6.25   0.00   0.00   0.00   0.00   0.00   0.00  -7.52   8.94   1.49

   TEXTILES......................    12.9   12.7   12.2   11.8   11.4   11.0   11.4   11.3   11.0   10.6   10.4   13.8   12.4   11.3
     % CHG PREV QTR SAAR.........   -6.90  -7.02 -14.70 -11.50 -12.50 -15.33  14.38  -1.03 -11.56 -14.84  -5.88 -11.47  -9.73  -9.18
     % CHG SAME QTR LAST YR......   -9.77  -8.19 -10.91 -10.09 -11.48 -13.52  -6.94  -4.30  -4.05  -3.91  -8.48 -11.47  -9.73  -9.18

   APPAREL.......................    17.4   17.0   16.5   16.1   15.7   15.5   15.0   14.6   14.1   14.6   12.8   18.9   16.8   15.2
     % CHG PREV QTR SAAR.........   -7.99  -9.58 -10.45  -9.86 -10.11  -4.14 -13.02  -9.72 -13.72  16.98 -41.66 -13.94 -11.42  -9.33
     % CHG SAME QTR LAST YR......  -14.82 -10.99  -9.96  -9.47 -10.00  -8.67  -9.34  -9.30 -10.23  -5.64 -14.61 -13.94 -11.42  -9.33

   PAPER.........................    22.4   22.8   22.5   22.0   22.7   22.4   21.9   21.7   22.5   22.2   22.3   22.1   22.4   22.2
     % CHG PREV QTR SAAR.........    3.65   6.70  -4.86  -8.07  11.96  -4.94  -8.24  -4.06  14.81  -4.76   1.76   0.95   1.58  -1.24
     % CHG SAME QTR LAST YR......    1.36   3.32   2.51  -0.83   1.10  -1.78  -2.66  -1.62  -1.00  -0.95   1.65   0.95   1.58  -1.24

   PRINTING AND PUBLISHING.......    34.8   34.8   34.9   34.9   34.6   34.6   34.8   34.6   34.3   34.4   34.6   36.2   34.8   34.7
     % CHG PREV QTR SAAR.........   -8.35   0.00   0.72   0.86  -3.56   0.12   1.43  -1.53  -3.22   0.69   2.60  -4.00  -3.62  -0.55
     % CHG SAME QTR LAST YR......   -5.61  -3.69  -3.34  -1.77  -0.51  -0.48  -0.31  -0.90  -0.82  -0.67  -0.39  -4.00  -3.62  -0.55

   CHEMICALS.....................    27.2   27.1   26.5   26.3   26.1   25.4   25.3   24.8   24.7   23.7   25.0   27.6   26.8   25.4
     % CHG PREV QTR SAAR.........   -2.31  -1.54  -7.82  -2.58  -3.66 -10.76  -0.93  -7.26  -1.33 -15.29  23.43  -3.33  -3.00  -5.12
     % CHG SAME QTR LAST YR......   -4.33  -1.35  -2.70  -3.60  -3.93  -6.26  -4.56  -5.73  -5.16  -6.39  -1.10  -3.33  -3.00  -5.12

   PETROLEUM REFINING............     1.2    1.2    1.2    1.3    1.2    1.3    1.3    1.3    1.3    1.3    1.3    1.2    1.2    1.3
     % CHG PREV QTR SAAR.........  -18.99 -10.38   8.54  10.79  -9.32  10.65   9.79   9.35 -11.16   9.26  -6.98   2.76  -1.04   3.52
     % CHG SAME QTR LAST YR......    5.71   0.00  -5.78  -3.34  -0.57   4.81   5.11   4.77   4.23   3.90  -0.32   2.76  -1.04   3.52

   RUBBER AND PLASTICS...........    33.3   33.4   30.7   32.5   33.2   32.7   29.8   32.2   32.2   32.3   30.3   33.5   32.5   32.0
     % CHG PREV QTR SAAR.........    4.51   1.34 -29.31  27.03   7.89  -6.01 -30.56  35.61   0.95   0.52 -22.52  -5.33  -3.12  -1.65
     % CHG SAME QTR LAST YR......   -3.14  -0.08  -7.99  -1.25  -0.46  -2.31  -2.75  -1.15  -2.78  -1.13   1.62  -5.33  -3.12  -1.65

   LEATHER.......................     1.9    1.9    1.9    1.7    1.8    2.0    1.9    1.7    1.7    1.9    1.9    2.2    1.8    1.8
     % CHG PREV QTR SAAR.........   -7.04   2.14  -8.40 -29.30  15.28  57.17 -22.33 -25.94 -14.62  57.55   8.51 -27.76 -14.82  -0.42
     % CHG SAME QTR LAST YR......  -22.78 -13.55  -9.89 -11.45  -6.55   4.08  -0.13   1.04  -6.27  -6.21   1.97 -27.76 -14.82  -0.42

   STATISTICAL DISCREPANCY.......     0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0    0.0


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]
                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                 TABLE 11:  TENNESSEE AVERAGE ANNUAL WAGE AND SALARY RATE BY SECTOR
                                                            1996 DOLLARS

                                  HISTORY                               FORECAST - DATA                                ANNUAL
                                   ------ --------------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL NONAGRICULTURAL...........   29204  28918  29051  28384  29114  29380  29179  28489  29533  29374  29434  28941  28889  29041
       % CHG SAME QTR LAST YR....   -0.22  -0.04  -0.37  -0.08  -0.31   1.60   0.44   0.37   1.44  -0.02   0.87   0.35  -0.18   0.52

   MINING........................   45901  44096  43933  44798  45734  44669  44513  45431  46497  45463  45341  41797  44682  45087
       % CHG SAME QTR LAST YR....    8.55   7.15  12.19   0.47  -0.36   1.30   1.32   1.41   1.67   1.78   1.86   2.02   6.90   0.90

   CONSTRUCTION..................   33661  31564  31032  31922  34103  31955  31361  32237  34501  32343  31765  32291  32045  32414
       % CHG SAME QTR LAST YR....   -2.38  -1.88  -0.33   1.73   1.31   1.24   1.06   0.99   1.17   1.21   1.29  -1.76  -0.76   1.15

   MANUFACTURING.................   32747  33196  33497  32471  32759  33425  33698  32651  33014  33500  33997  33147  32978  33133
       % CHG SAME QTR LAST YR....   -2.77  -0.53   0.79   0.54   0.04   0.69   0.60   0.56   0.78   0.23   0.89  -1.25  -0.51   0.47

     DURABLE GOODS...............   32620  33128  33833  32810  33053  33547  34196  33172  33519  33686  34688  33051  33098  33492
       % CHG SAME QTR LAST YR....   -2.57  -0.68   2.06   1.84   1.33   1.27   1.07   1.10   1.41   0.41   1.44  -2.69   0.14   1.19

     NONDURABLE GOODS............   32927  33293  33015  31984  32337  33244  32955  31877  32258  33217  32936  33284  32805  32603
       % CHG SAME QTR LAST YR....   -3.07  -0.32  -1.02  -1.32  -1.79  -0.15  -0.18  -0.34  -0.24  -0.08  -0.06   0.91  -1.44  -0.61

   TRADE.........................   22356  21820  22018  21551  21981  22328  22166  21859  22753  22449  21619  21866  21936  22084
       % CHG SAME QTR LAST YR....   -0.07  -0.45   0.83   1.01  -1.68   2.33   0.67   1.43   3.51   0.54  -2.47  -1.48   0.32   0.67

   SERVICES......................   28718  28065  27686  27364  28674  29055  27936  27604  29494  28954  29542  28222  27958  28317
       % CHG SAME QTR LAST YR....    0.03   0.82  -2.52  -2.06  -0.15   3.53   0.90   0.88   2.86  -0.35   5.75   2.67  -0.93   1.28

   FIN,INS,REAL EST..............   42261  42672  42057  43194  43436  43014  42534  42803  43295  43106  39719  41986  42546  42947
       % CHG SAME QTR LAST YR....    3.72  -1.35  -0.17   3.31   2.78   0.80   1.13  -0.90  -0.32   0.21  -6.62   2.31   1.33   0.94

   TRANS,COMM,PUB UTIL...........   35536  36583  36047  35044  35481  36519  35934  34807  35414  36488  35935  35471  35803  35685
       % CHG SAME QTR LAST YR....   -0.66   2.64   1.59   0.17  -0.16  -0.18  -0.31  -0.68  -0.19  -0.08   0.00  -2.01   0.93  -0.33

   GOVERNMENT....................   28237  28011  29723  27827  28006  28122  29690  27804  28016  28101  29804  28182  28449  28406
       % CHG SAME QTR LAST YR....    2.79   0.20   0.52   0.32  -0.82   0.40  -0.11  -0.08   0.04  -0.07   0.38   2.89   0.95  -0.15

     FEDERAL,CIVILIAN............   48669  45500  46878  47184  47078  46411  47220  47765  47681  47063  47853  46762  47058  47119
       % CHG SAME QTR LAST YR....    4.63  -2.38   0.02   0.27  -3.27   2.00   0.73   1.23   1.28   1.40   1.34   8.79   0.63   0.13

     STATE AND LOCAL.............   25345  25512  27189  25141  25305  25472  27099  25041  25198  25347  27096  25477  25797  25729
       % CHG SAME QTR LAST YR....    2.66   1.23   0.82   0.36  -0.16  -0.16  -0.33  -0.40  -0.42  -0.49  -0.01   1.98   1.25  -0.26


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]
                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                 TABLE 12:  TENNESSEE AVERAGE ANNUAL WAGE AND SALARY RATE BY SECTOR
                                                  SEASONALLY ADJUSTED 1996 DOLLARS

                                  HISTORY                               FORECAST - DATA                                ANNUAL
                                   ------ --------------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL NONAGRICULTURAL...........   28866  28973  29064  28642  28775  29436  29194  28748  29183  29431  29454  28928  28886  29038
       % CHG PREV QTR SAAR.......    2.87   1.50   1.25  -5.68   1.87   9.52  -3.25  -5.97   6.19   3.43   0.32   0.32  -0.15   0.53
       % CHG SAME QTR LAST YR....   -0.14   0.00  -0.37  -0.07  -0.31   1.60   0.45   0.37   1.42  -0.02   0.89   0.32  -0.15   0.53

   MINING........................   45067  44497  44660  44798  44902  45075  45249  45431  45652  45876  46091  41865  44755  45164
       % CHG PREV QTR SAAR.......    4.37  -4.96   1.47   1.25   0.93   1.55   1.55   1.62   1.96   1.98   1.88   1.93   6.90   0.91
       % CHG SAME QTR LAST YR....    8.40   7.24  12.19   0.47  -0.36   1.30   1.32   1.41   1.67   1.78   1.86   1.93   6.90   0.91

   CONSTRUCTION..................   31791  31910  32049  32153  32209  32305  32389  32470  32585  32697  32806  32267  31976  32343
       % CHG PREV QTR SAAR.......    2.37   1.50   1.76   1.30   0.70   1.20   1.04   1.01   1.42   1.39   1.34  -1.72  -0.90   1.15
       % CHG SAME QTR LAST YR....   -3.29  -1.61  -0.33   1.73   1.31   1.24   1.06   0.99   1.17   1.21   1.29  -1.72  -0.90   1.15

   MANUFACTURING.................   32681  33222  33481  32521  32691  33448  33682  32702  32945  33524  33983  33129  32976  33131
       % CHG PREV QTR SAAR.......    4.21   6.78   3.16 -10.99   2.11   9.59   2.83 -11.15   3.01   7.22   5.58  -1.26  -0.46   0.47
       % CHG SAME QTR LAST YR....   -2.54  -0.59   0.80   0.54   0.03   0.68   0.60   0.55   0.78   0.23   0.89  -1.26  -0.46   0.47

     DURABLE GOODS...............   32596  33196  33764  32851  33025  33616  34128  33213  33489  33755  34622  33050  33102  33495
       % CHG PREV QTR SAAR.......    4.27   7.57   7.02 -10.39   2.13   7.36   6.24 -10.31   3.37   3.22  10.67  -2.67   0.16   1.19
       % CHG SAME QTR LAST YR....   -2.37  -0.84   2.08   1.84   1.31   1.26   1.08   1.10   1.41   0.42   1.44  -2.67   0.16   1.19

     NONDURABLE GOODS............   32802  33259  33073  32048  32212  33202  33014  31940  32132  33174  32997  33240  32796  32592
       % CHG PREV QTR SAAR.......    4.13   5.69  -2.21 -11.83   2.06  12.88  -2.26 -12.38   2.43  13.61  -2.11   0.84  -1.34  -0.62
       % CHG SAME QTR LAST YR....   -2.78  -0.24  -1.02  -1.30  -1.80  -0.17  -0.18  -0.34  -0.25  -0.09  -0.05   0.84  -1.34  -0.62

   TRADE.........................   21943  21761  22106  21963  21574  22267  22254  22277  22333  22388  21706  21873  21943  22093
       % CHG PREV QTR SAAR.......    3.72  -3.28   6.49  -2.55  -6.89  13.48  -0.23   0.41   1.00   1.00 -11.65  -1.42   0.32   0.68
       % CHG SAME QTR LAST YR....   -0.10  -0.46   0.83   1.01  -1.68   2.33   0.67   1.43   3.51   0.54  -2.47  -1.42   0.32   0.68

   SERVICES......................   28230  28206  27919  27475  28187  29201  28171  27716  28993  29099  29791  28199  27958  28319
       % CHG PREV QTR SAAR.......    2.54  -0.34  -4.01  -6.21  10.77  15.18 -13.38  -6.30  19.73   1.48   9.86   2.60  -0.86   1.29
       % CHG SAME QTR LAST YR....    0.35   0.84  -2.52  -2.06  -0.15   3.53   0.90   0.88   2.86  -0.35   5.75   2.60  -0.86   1.29

   FIN,INS,REAL EST..............   41976  42737  42258  43227  43143  43079  42737  42836  43003  43171  39909  41985  42549  42949
       % CHG PREV QTR SAAR.......    1.30   7.45  -4.41   9.49  -0.77  -0.59  -3.14   0.93   1.57   1.58 -26.97   2.30   1.34   0.94
       % CHG SAME QTR LAST YR....    3.70  -1.28  -0.17   3.31   2.78   0.80   1.13  -0.90  -0.32   0.21  -6.62   2.30   1.34   0.94

   TRANS,COMM,PUB UTIL...........   35219  36675  36161  35122  35164  36610  36048  34884  35098  36579  36048  35403  35794  35677
       % CHG PREV QTR SAAR.......    1.78  17.59  -5.49 -11.01   0.48  17.50  -6.01 -12.30   2.47  17.98  -5.68  -2.21   1.10  -0.33
       % CHG SAME QTR LAST YR....   -0.47   3.10   1.59   0.17  -0.16  -0.18  -0.31  -0.68  -0.19  -0.08   0.00  -2.21   1.10  -0.33

   GOVERNMENT....................   28500  28061  28789  28314  28267  28174  28757  28291  28277  28153  28869  28152  28416  28372
       % CHG PREV QTR SAAR.......    3.99  -6.02  10.78  -6.43  -0.66  -1.32   8.54  -6.33  -0.20  -1.74  10.57   2.84   0.94  -0.15
       % CHG SAME QTR LAST YR....    2.74   0.20   0.52   0.32  -0.82   0.40  -0.11  -0.08   0.03  -0.07   0.39   2.84   0.94  -0.15

     FEDERAL,CIVILIAN............   48701  46137  46847  46716  47109  47061  47189  47291  47713  47722  47822  46804  47100  47163
       % CHG PREV QTR SAAR.......   19.38 -19.46   6.30  -1.11   3.41  -0.41   1.09   0.87   3.61   0.08   0.84   8.86   0.63   0.13
       % CHG SAME QTR LAST YR....    4.37  -2.10   0.02   0.27  -3.27   2.00   0.73   1.23   1.28   1.40   1.34   8.86   0.63   0.13

     STATE AND LOCAL.............   25613  25515  26215  25680  25573  25474  26129  25577  25465  25349  26126  25439  25756  25688
       % CHG PREV QTR SAAR.......    0.40  -1.53  11.43  -7.91  -1.66  -1.53  10.68  -8.18  -1.75  -1.80  12.82   1.92   1.24  -0.26
       % CHG SAME QTR LAST YR....    2.64   1.20   0.82   0.36  -0.16  -0.16  -0.33  -0.40  -0.42  -0.49  -0.01   1.92   1.24  -0.26

                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]
                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                 TABLE 13:  TENNESSEE AVERAGE ANNUAL WAGE AND SALARY RATE BY SECTOR
                                                          CURRENT DOLLARS

                                  HISTORY                               FORECAST - DATA                                ANNUAL
                                   ------ --------------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL NONAGRICULTURAL...........   32165  32052  32377  31841  32919  33438  33436  32871  34279  34300  34579  31707  32109  33166
       % CHG SAME QTR LAST YR....    0.68   1.06   1.29   2.05   2.35   4.32   3.27   3.23   4.13   2.58   3.42   2.38   1.27   3.29

   MINING........................   50556  48876  48964  50255  51711  50837  51007  52418  53970  53087  53267  45794  49663  51493
       % CHG SAME QTR LAST YR....    9.54   8.32  14.06   2.61   2.29   4.01   4.17   4.30   4.37   4.42   4.43   4.09   8.45   3.69

   CONSTRUCTION..................   37074  34986  34586  35810  38560  36368  35937  37195  40045  37767  37318  35375  35614  37015
       % CHG SAME QTR LAST YR....   -1.49  -0.80   1.33   3.90   4.01   3.95   3.91   3.87   3.85   3.84   3.84   0.23   0.67   3.93

   MANUFACTURING.................   36067  36794  37333  36426  37041  38040  38615  37673  38319  39118  39940  36315  36655  37842
       % CHG SAME QTR LAST YR....   -1.89   0.56   2.47   2.68   2.70   3.39   3.43   3.42   3.45   2.83   3.43   0.74   0.94   3.24

     DURABLE GOODS...............   35928  36719  37706  36807  37372  38180  39185  38273  38905  39335  40751  36210  36790  38253
       % CHG SAME QTR LAST YR....   -1.69   0.41   3.77   4.01   4.02   3.98   3.92   3.98   4.10   3.03   4.00  -0.72   1.60   3.98

     NONDURABLE GOODS............   36266  36902  36795  35880  36563  37835  37763  36779  37441  38787  38693  36465  36461  37235
       % CHG SAME QTR LAST YR....   -2.19   0.77   0.63   0.79   0.82   2.53   2.63   2.51   2.40   2.52   2.46   2.94  -0.01   2.12

   TRADE.........................   24623  24186  24539  24176  24854  25412  25400  25221  26410  26214  25398  23956  24381  25222
       % CHG SAME QTR LAST YR....    0.83   0.64   2.51   3.16   0.94   5.07   3.51   4.32   6.26   3.16  -0.01   0.52   1.77   3.45

   SERVICES......................   31630  31108  30856  30697  32422  33067  32012  31849  34234  33809  34707  30920  31073  32338
       % CHG SAME QTR LAST YR....    0.94   1.92  -0.89   0.03   2.50   6.30   3.75   3.76   5.59   2.24   8.42   4.76   0.49   4.07

   FIN,INS,REAL EST..............   46547  47298  46873  48455  49113  48954  48739  49387  50253  50335  46662  46002  47293  49048
       % CHG SAME QTR LAST YR....    4.66  -0.27   1.50   5.51   5.51   3.50   3.98   1.92   2.32   2.82  -4.26   4.37   2.81   3.71

   TRANS,COMM,PUB UTIL...........   39139  40549  40175  39312  40118  41562  41177  40160  41106  42607  42216  38862  39794  40754
       % CHG SAME QTR LAST YR....    0.24   3.76   3.28   2.30   2.50   2.50   2.50   2.16   2.46   2.51   2.52  -0.03   2.40   2.41

   GOVERNMENT....................   31100  31047  33126  31216  31666  32006  34022  32080  32518  32814  35014  30878  31622  32444
       % CHG SAME QTR LAST YR....    3.73   1.30   2.20   2.46   1.82   3.09   2.70   2.77   2.69   2.52   2.91   4.97   2.41   2.60

     FEDERAL,CIVILIAN............   53604  50432  52245  52931  53231  52821  54109  55111  55344  54956  56218  51234  52303  53818
       % CHG SAME QTR LAST YR....    5.58  -1.32   1.69   2.40  -0.69   4.74   3.57   4.12   3.97   4.04   3.90  10.96   2.09   2.90

     STATE AND LOCAL.............   27915  28278  30302  28204  28613  28990  31053  28892  29247  29598  31833  27914  28675  29387
       % CHG SAME QTR LAST YR....    3.59   2.34   2.50   2.50   2.50   2.52   2.48   2.44   2.22   2.10   2.51   4.04   2.72   2.48


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]
                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                 TABLE 14:  TENNESSEE AVERAGE ANNUAL WAGE AND SALARY RATE BY SECTOR
                                                SEASONALLY ADJUSTED CURRENT DOLLARS

                                  HISTORY                               FORECAST - DATA                                ANNUAL
                                   ------ --------------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL NONAGRICULTURAL...........   31793  32114  32391  32131  32536  33502  33453  33170  33873  34366  34603  31694  32107  33165
       % CHG PREV QTR SAAR.......    4.00   4.11   3.50  -3.18   5.14  12.41  -0.58  -3.35   8.75   5.95   2.79   2.35   1.30   3.30
       % CHG SAME QTR LAST YR....    0.77   1.10   1.29   2.06   2.34   4.32   3.28   3.23   4.11   2.58   3.44   2.35   1.30   3.30

   MINING........................   49636  49321  49773  50255  50771  51299  51850  52418  52988  53569  54147  45870  49746  51585
       % CHG PREV QTR SAAR.......    5.52  -2.52   3.72   3.93   4.17   4.23   4.36   4.45   4.42   4.46   4.39   3.99   8.45   3.70
       % CHG SAME QTR LAST YR....    9.38   8.42  14.06   2.61   2.29   4.01   4.17   4.30   4.37   4.42   4.43   3.99   8.45   3.70

   CONSTRUCTION..................   35015  35369  35719  36069  36418  36767  37114  37464  37821  38180  38540  35351  35543  36941
       % CHG PREV QTR SAAR.......    3.50   4.10   4.02   3.98   3.93   3.88   3.84   3.82   3.87   3.85   3.83   0.26   0.54   3.93
       % CHG SAME QTR LAST YR....   -2.41  -0.54   1.33   3.90   4.01   3.95   3.91   3.87   3.85   3.84   3.84   0.26   0.54   3.93

   MANUFACTURING.................   35995  36823  37315  36482  36964  38068  38597  37731  38239  39146  39923  36296  36654  37840
       % CHG PREV QTR SAAR.......    5.35   9.53   5.45  -8.63   5.38  12.49   5.68  -8.67   5.50   9.83   8.17   0.73   0.99   3.24
       % CHG SAME QTR LAST YR....   -1.65   0.50   2.48   2.68   2.69   3.38   3.44   3.42   3.45   2.83   3.44   0.73   0.99   3.24

     DURABLE GOODS...............   35902  36795  37630  36852  37341  38258  39108  38321  38871  39416  40674  36210  36795  38257
       % CHG PREV QTR SAAR.......    5.41  10.33   9.39  -8.02   5.41  10.19   9.18  -7.81   5.87   5.73  13.38  -0.71   1.61   3.97
       % CHG SAME QTR LAST YR....   -1.49   0.25   3.78   4.01   4.01   3.98   3.93   3.99   4.10   3.03   4.00  -0.71   1.61   3.97

     NONDURABLE GOODS............   36128  36864  36860  35952  36422  37788  37830  36853  37296  38737  38765  36418  36451  37223
       % CHG PREV QTR SAAR.......    5.27   8.40  -0.04  -9.49   5.34  15.86   0.45  -9.94   4.90  16.37   0.29   2.87   0.09   2.12
       % CHG SAME QTR LAST YR....   -1.89   0.86   0.63   0.80   0.81   2.51   2.63   2.51   2.40   2.51   2.47   2.87   0.09   2.12

   TRADE.........................   24168  24120  24637  24638  24394  25343  25501  25703  25921  26143  25500  23965  24391  25235
       % CHG PREV QTR SAAR.......    4.86  -0.79   8.85   0.02  -3.90  16.48   2.53   3.20   3.44   3.46  -9.48   0.57   1.78   3.46
       % CHG SAME QTR LAST YR....    0.81   0.63   2.51   3.16   0.94   5.07   3.51   4.32   6.26   3.16  -0.01   0.57   1.78   3.46

   SERVICES......................   31093  31264  31116  30822  31871  33234  32281  31979  33652  33979  34999  30895  31074  32341
       % CHG PREV QTR SAAR.......    3.67   2.22  -1.88  -3.73  14.33  18.23 -10.98  -3.69  22.62   3.95  12.55   4.67   0.58   4.08
       % CHG SAME QTR LAST YR....    1.26   1.94  -0.89   0.03   2.50   6.30   3.75   3.76   5.59   2.24   8.42   4.67   0.58   4.08

   FIN,INS,REAL EST..............   46233  47370  47096  48492  48782  49028  48972  49424  49914  50411  46885  46002  47298  49051
       % CHG PREV QTR SAAR.......    2.41  10.20  -2.29  12.39   2.41   2.04  -0.46   3.74   4.02   4.05 -25.18   4.36   2.82   3.71
       % CHG SAME QTR LAST YR....    4.64  -0.20   1.50   5.51   5.51   3.50   3.98   1.92   2.32   2.82  -4.26   4.36   2.82   3.71

   TRANS,COMM,PUB UTIL...........   38790  40650  40301  39399  39760  41666  41307  40250  40738  42714  42349  38789  39785  40746
       % CHG PREV QTR SAAR.......    2.90  20.61  -3.39  -8.66   3.71  20.60  -3.40  -9.85   4.95  20.85  -3.37  -0.24   2.57   2.41
       % CHG SAME QTR LAST YR....    0.43   4.23   3.28   2.30   2.50   2.50   2.50   2.16   2.46   2.51   2.52  -0.24   2.57   2.41

   GOVERNMENT....................   31390  31103  32085  31763  31962  32064  32953  32642  32821  32874  33915  30844  31585  32405
       % CHG PREV QTR SAAR.......    5.13  -3.61  13.24  -3.96   2.53   1.29  11.55  -3.72   2.21   0.65  13.28   4.92   2.40   2.60
       % CHG SAME QTR LAST YR....    3.68   1.30   2.19   2.46   1.82   3.09   2.70   2.77   2.69   2.52   2.92   4.92   2.40   2.60

     FEDERAL,CIVILIAN............   53639  51138  52211  52406  53267  53560  54074  54565  55380  55725  56182  51280  52349  53866
       % CHG PREV QTR SAAR.......   20.69 -17.39   8.66   1.50   6.73   2.22   3.89   3.68   6.11   2.52   3.32  11.05   2.08   2.90
       % CHG SAME QTR LAST YR....    5.31  -1.03   1.69   2.40  -0.69   4.74   3.57   4.12   3.97   4.04   3.90  11.05   2.08   2.90

     STATE AND LOCAL.............   28210  28280  29216  28808  28915  28992  29941  29511  29557  29600  30692  27873  28629  29340
       % CHG PREV QTR SAAR.......    1.50   1.00  13.91  -5.47   1.50   1.07  13.74  -5.62   0.62   0.59  15.59   3.98   2.71   2.48
       % CHG SAVE QTR LAST YR....    3.57   2.30   2.50   2.50   2.50   2.52   2.48   2.44   2.22   2.10   2.51   3.98   2.71   2.48


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]
                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                  TABLE 15:  TENNESSEE CIVILIAN LABOR FORCE AND UNEMPLOYMENT RATE

                                      HISTORY                           FORECAST - DATA                                ANNUAL
                                   ------------- -------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 CIVILIAN LABOR FORCE (THOUS)....    2867   2877   2913   2909   2909   2923   2960   2963   2976   2968   3018   2818   2891   2939
     % CHG SAME QTR LAST YR......    3.28   2.59   2.42   2.17   1.47   1.62   1.61   1.86   2.32   1.53   1.97   0.69   2.61   1.64

   EMPLOYED PERSONS (THOUS)......    2701   2736   2770   2778   2762   2789   2815   2829   2828   2833   2873   2692   2746   2798
     % CHG SAME QTR LAST YR......    1.80   1.86   2.09   2.31   2.28   1.93   1.62   1.83   2.40   1.60   2.09   0.13   2.02   1.91

   UNEMPLOYED PERSONS (THOUS)....     166    141    143    131    147    134    145    134    148    135    145    126    145    140
     % CHG SAME QTR LAST YR......   35.13  19.29   9.13  -0.76 -11.70  -4.39   1.49   2.51   0.76   0.13  -0.24  14.34  15.26  -3.48

 PARTICIPATION RATE (PERCENT)....    63.0   63.0   63.6   63.5   63.3   63.3   63.9   63.9   64.0   63.6   64.7   62.2   63.3   63.6
     % CHG SAME QTR LAST YR......    2.56   1.62   1.35   1.20   0.38   0.53   0.49   0.73   1.15   0.35   1.19   0.04   1.68   0.53

 UNEMPLOYMENT RATE (PERCENT).....     5.8    4.9    4.9    4.5    5.0    4.6    4.9    4.5    5.0    4.5    4.8    4.5    5.0    4.8


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]
                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                  TABLE 16:  TENNESSEE CIVILIAN LABOR FORCE AND UNEMPLOYMENT RATE
                                                        SEASONALLY ADJUSTED

                                      HISTORY                           FORECAST - DATA                                ANNUAL
                                   ------------- -------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 CIVILIAN LABOR FORCE (THOUS)....    2898   2883   2887   2896   2942   2930   2933   2949   3010   2975   2991   2818   2891   2938
     % CHG PREV QTR SAAR.........    9.27  -2.00   0.44   1.27   6.50  -1.59   0.44   2.26   8.45  -4.61   2.22   0.69   2.60   1.65
     % CHG SAME QTR LAST YR......    3.24   2.58   2.41   2.16   1.51   1.61   1.61   1.86   2.32   1.53   1.97   0.69   2.60   1.65

   EMPLOYED PERSONS (THOUS)......    2738   2738   2748   2759   2801   2790   2793   2809   2868   2835   2851   2692   2746   2798
     % CHG PREV QTR SAAR.........    6.35  -0.12   1.58   1.53   6.22  -1.46   0.34   2.38   8.62  -4.51   2.28   0.13   2.01   1.91
     % CHG SAME QTR LAST YR......    1.77   1.86   2.09   2.31   2.28   1.93   1.62   1.83   2.40   1.60   2.09   0.13   2.01   1.91

   UNEMPLOYED PERSONS (THOUS)....     160    146    138    137    141    139    140    140    142    140    140    126    145    140
     % CHG PREV QTR SAAR.........   79.32 -30.31 -19.22  -3.92  12.37  -4.18   2.55   0.01   4.89  -6.55   1.05  14.37  15.15  -3.37
     % CHG SAME QTR LAST YR......   37.21  18.32   9.13  -0.76 -11.70  -4.39   1.49   2.51   0.76   0.13  -0.24  14.37  15.15  -3.37

 PARTICIPATION RATE (PERCENT)....    63.7   63.2   63.0   63.2   64.0   63.5   63.4   63.6   64.7   63.7   64.1   62.2   63.3   63.6
     % CHG PREV QTR SAAR.........    8.43  -3.50  -0.69   0.89   5.16  -3.11  -0.78   1.83   6.96  -6.17   2.61   0.04   1.66   0.54
     % CHG SAME QTR LAST YR......    2.52   1.61   1.35   1.19   0.42   0.52   0.50   0.73   1.16   0.35   1.20   0.04   1.66   0.54

 UNEMPLOYMENT RATE (PERCENT).....     5.5    5.1    4.8    4.7    4.8    4.8    4.8    4.8    4.7    4.7    4.7    4.5    5.0    4.8


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]
                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                                 TABLE 17:  TENNESSEE TAXABLE SALES
                                                      MILLIONS OF 1996 DOLLARS

                                      HISTORY                           FORECAST - DATA                                ANNUAL
                                   ------------- -------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL...........................   15767  17222  16843  18272  15827  17357  17204  18644  16116  17500  17669  67966  68104  69031
     % CHG SAME QTR LAST YR......    0.18  -0.41  -0.07   1.07   0.38   0.78   2.14   2.04   1.83   0.83   2.70  -2.13   0.20   1.36

   AUTO DEALERS..................    1904   2029   2090   2037   2106   2081   2076   2155   2211   2094   2122   7865   8060   8419
     % CHG SAME QTR LAST YR......    2.55   3.36   6.27  -1.98  10.59   2.56  -0.66   5.83   5.02   0.63   2.20   0.69   2.48   4.45

   PURCHASES FROM MANUFACTURERS..     733    889    894    927    734    891    907    947    779    920    903   3605   3443   3479
     % CHG SAME QTR LAST YR......  -13.83  -7.59  -0.30   3.51   0.15   0.22   1.45   2.12   6.17   3.28  -0.52  -7.76  -4.49   1.04

   MISC DURABLE GOODS............    2538   2928   2662   2846   2548   2951   2870   2851   2532   2911   2781  11278  10974  11221
     % CHG SAME QTR LAST YR......   -2.96  -3.19  -3.71  -0.96   0.38   0.79   7.82   0.19  -0.61  -1.37  -3.11  -6.69  -2.69   2.25

   EATING AND DRINKING PLACES....    1424   1545   1547   1467   1422   1553   1564   1492   1453   1585   1600   5882   5982   6031
     % CHG SAME QTR LAST YR......    3.02   3.12   1.67  -0.92  -0.13   0.52   1.11   1.72   2.20   2.10   2.31   1.83   1.70   0.81

   FOOD STORES...................    1703   1779   1790   1931   1632   1724   1745   1873   1642   1735   1742   7384   7203   6974
     % CHG SAME QTR LAST YR......   -2.54  -3.12  -2.42  -1.79  -4.18  -3.07  -2.51  -3.01   0.58   0.64  -0.15  -2.48  -2.46  -3.18

   LIQUOR STORES.................      86     88     85    112     84     86     83    110     83     85     82    362    371    363
     % CHG SAME QTR LAST YR......    2.64   2.37   3.41   1.06  -2.30  -2.25  -2.02  -1.69  -1.26  -1.20  -1.11   1.28   2.27  -2.04

   HOTELS AND MOTELS.............     321    431    451    412    325    431    451    411    325    431    451   1627   1615   1617
     % CHG SAME QTR LAST YR......   -4.65  -1.37   0.72   1.73   1.24  -0.05  -0.16  -0.23  -0.07  -0.05  -0.01  -4.29  -0.70   0.13

   OTHER RETAIL AND SERVICE......    4505   4864   4621   5632   4388   4876   4733   5784   4426   4930   5088  19518  19622  19782
     % CHG SAME QTR LAST YR......    1.58   1.36  -1.07   0.33  -2.60   0.24   2.43   2.71   0.86   1.12   7.50  -2.32   0.53   0.81

   MISC NONDURABLE GOODS.........    1296   1365   1318   1658   1334   1400   1333   1719   1359   1425   1437   5745   5637   5786
     % CHG SAME QTR LAST YR......   -5.02  -3.43  -1.95   2.12   2.98   2.59   1.10   3.68   1.83   1.78   7.82  -2.51  -1.89   2.65

   TRANSPORTATION,COMMUNICATION..    1258   1304   1385   1251   1254   1363   1442   1301   1306   1382   1463   4699   5197   5361
     % CHG SAME QTR LAST YR......   17.77   2.37   4.54  21.11  -0.28   4.53   4.14   4.03   4.16   1.43   1.46   7.74  10.60   3.14


 PER CAPITA ($)..................    2732   2973   2899   3141   2712   2964   2929   3169   2731   2954   2983  11836  11746  11774
     % CHG SAME QTR LAST YR......   -0.62  -1.40  -1.12   0.07  -0.71  -0.32   1.01   0.90   0.67  -0.34   1.83  -2.87  -0.76   0.24


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]
                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                                 TABLE 18:  TENNESSEE TAXABLE SALES
                                            MILLIONS OF SEASONALLY ADJUSTED 1996 DOLLARS

                                      HISTORY                           FORECAST - DATA                                ANNUAL
                                   ------------- -------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL...........................   17045  17015  16674  17410  17078  17151  17032  17774  17383  17295  17507  68039  68144  69036
     % CHG PREV QTR SAAR.........   -3.94  -0.72  -7.77  18.86  -7.40   1.71  -2.75  18.60  -8.51  -2.01   5.00  -2.14   0.15   1.31
     % CHG SAME QTR LAST YR......   -0.13  -0.33  -0.06   1.12   0.19   0.80   2.15   2.09   1.78   0.84   2.79  -2.14   0.15   1.31

   AUTO DEALERS..................    1915   1959   1959   2258   2116   2012   1946   2389   2222   2024   1988   7910   8091   8463
     % CHG PREV QTR SAAR.........  -52.16   9.54  -0.17  76.56 -22.81 -18.36 -12.50 127.46 -25.15 -31.15  -6.92   1.27   2.30   4.59
     % CHG SAME QTR LAST YR......    2.36   3.56   6.27  -1.96  10.49   2.66  -0.66   5.83   5.02   0.63   2.20   1.27   2.30   4.59

   PURCHASES FROM MANUFACTURERS..     825    840    875    901    825    842    887    920    876    869    883   3614   3440   3474
     % CHG PREV QTR SAAR.........  -19.17   7.60  17.55  12.41 -29.52   8.30  23.44  15.42 -17.67  -2.99   6.23  -7.67  -4.81   0.99
     % CHG SAME QTR LAST YR......  -14.00  -7.61  -0.15   3.54   0.05   0.21   1.45   2.12   6.17   3.28  -0.52  -7.67  -4.81   0.99

   MISC DURABLE GOODS............    2770   2777   2624   2810   2775   2803   2829   2815   2758   2764   2742  11285  10981  11222
     % CHG PREV QTR SAAR.........   -9.44   1.04 -20.27  31.46  -4.89   4.10   3.85  -2.02  -7.88   0.96  -3.27  -6.91  -2.70   2.20
     % CHG SAME QTR LAST YR......   -3.33  -2.92  -3.51  -1.04   0.18   0.93   7.82   0.19  -0.61  -1.37  -3.11  -6.91  -2.70   2.20

   EATING AND DRINKING PLACES....    1496   1498   1499   1490   1493   1506   1516   1516   1525   1538   1551   5883   5983   6031
     % CHG PREV QTR SAAR.........   -2.17   0.65   0.31  -2.40   0.68   3.70   2.58  -0.03   2.58   3.31   3.43   1.83   1.70   0.80
     % CHG SAME QTR LAST YR......    2.88   3.18   1.72  -0.91  -0.20   0.55   1.11   1.72   2.20   2.10   2.31   1.83   1.70   0.80

   FOOD STORES...................    1821   1793   1797   1793   1745   1738   1752   1739   1755   1749   1749   7387   7205   6974
     % CHG PREV QTR SAAR.........   -0.98  -6.15   0.96  -0.85 -10.34  -1.58   3.23  -2.87   3.68  -1.30   0.00  -2.44  -2.47  -3.20
     % CHG SAME QTR LAST YR......   -2.58  -3.09  -2.43  -1.79  -4.20  -3.05  -2.51  -3.01   0.58   0.64  -0.15  -2.44  -2.47  -3.20

   LIQUOR STORES.................      93     93     93     92     91     91     91     90     90     90     90    362    371    363
     % CHG PREV QTR SAAR.........   11.34  -1.78  -1.92  -2.51  -3.14  -1.47  -0.94  -1.20  -1.43  -1.23  -0.57   1.12   2.35  -2.08
     % CHG SAME QTR LAST YR......    2.55   2.34   3.38   1.12  -2.34  -2.26  -2.02  -1.69  -1.26  -1.20  -1.11   1.12   2.35  -2.08

   HOTELS AND MOTELS.............     400    404    405    405    405    405    404    404    404    404    404   1630   1615   1618
     % CHG PREV QTR SAAR.........    1.48   4.53   0.52   0.07  -0.52   0.00  -0.16  -0.21   0.11   0.06   0.01  -4.33  -0.95   0.19
     % CHG SAME QTR LAST YR......   -4.85  -1.24   0.86   1.63   1.13   0.02  -0.16  -0.23  -0.07  -0.05  -0.01  -4.33  -0.95   0.19

   OTHER RETAIL AND SERVICE......    4996   4959   4758   4917   4862   4972   4874   5050   4904   5027   5239  19525  19631  19758
     % CHG PREV QTR SAAR.........    8.27  -2.93 -15.24  13.99  -4.41   9.36  -7.64  15.27 -11.11  10.46  17.98  -2.42   0.54   0.65
     % CHG SAME QTR LAST YR......    1.37   1.38  -1.01   0.38  -2.69   0.25   2.43   2.71   0.86   1.12   7.50  -2.42   0.54   0.65

   MISC NONDURABLE GOODS.........    1422   1401   1368   1443   1462   1438   1383   1496   1488   1463   1491   5757   5634   5778
     % CHG PREV QTR SAAR.........    2.81  -5.79  -9.16  23.74   5.41  -6.44 -14.40  36.90  -1.95  -6.60   7.78  -2.39  -2.14   2.56
     % CHG SAME QTR LAST YR......   -5.37  -3.40  -1.69   2.15   2.79   2.61   1.10   3.68   1.83   1.78   7.82  -2.39  -2.14   2.56

   TRANSPORTATION,COMMUNICATION..    1307   1290   1296   1302   1305   1346   1350   1354   1360   1365   1370   4686   5194   5356
     % CHG PREV QTR SAAR.........  117.70  -5.10   2.15   1.69   1.08  12.94   1.32   1.26   1.59   1.53   1.47   7.38  10.86   3.10
     % CHG SAME QTR LAST YR......   18.22   2.02   4.48  21.04  -0.09   4.36   4.14   4.03   4.16   1.43   1.46   7.38  10.86   3.10


 PER CAPITA ($)..................    2953   2937   2870   2993   2927   2929   2900   3021   2945   2919   2955  11850  11754  11777
     % CHG PREV QTR SAAR.........   -4.75  -2.16  -8.81  18.22  -8.55   0.23  -3.91  17.91  -9.72  -3.51   5.06  -2.88  -0.81   0.19
     % CHG SAME QTR LAST YR......   -0.92  -1.31  -1.12   0.12  -0.90  -0.29   1.02   0.95   0.63  -0.33   1.92  -2.88  -0.81   0.19


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
[TOP]
                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                                 TABLE 19:  TENNESSEE TAXABLE SALES
                                                    MILLIONS OF CURRENT DOLLARS

                                      HISTORY                           FORECAST - DATA                                ANNUAL
                                   ------------- -------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL...........................   17366  19089  18772  20497  17895  19754  19714  21511  18705  20435  20757  74473  75724  78874
     % CHG SAME QTR LAST YR......    1.08   0.68   1.60   3.22   3.05   3.48   5.02   4.95   4.53   3.45   5.29  -0.16   1.68   4.16

   AUTO DEALERS..................    2097   2249   2330   2285   2381   2369   2379   2487   2567   2446   2493   8618   8961   9616
     % CHG SAME QTR LAST YR......    3.48   4.49   8.04   0.11  13.54   5.31   2.13   8.85   7.80   3.25   4.78   2.76   3.98   7.31

   PURCHASES FROM MANUFACTURERS..     807    985    997   1040    830   1014   1040   1092    904   1074   1060   3950   3829   3976
     % CHG SAME QTR LAST YR......  -13.05  -6.58   1.37   5.71   2.82   2.91   4.31   5.03   8.98   5.97   1.99  -5.91  -3.06   3.83

   MISC DURABLE GOODS............    2796   3245   2967   3193   2881   3359   3289   3290   2939   3399   3267  12358  12200  12819
     % CHG SAME QTR LAST YR......   -2.08  -2.13  -2.11   1.15   3.05   3.50  10.86   3.05   2.03   1.20  -0.66  -4.79  -1.27   5.07

   EATING AND DRINKING PLACES....    1568   1712   1724   1646   1608   1767   1792   1722   1687   1851   1880   6445   6650   6889
     % CHG SAME QTR LAST YR......    3.95   4.25   3.37   1.19   2.53   3.21   3.96   4.62   4.91   4.76   4.89   3.89   3.18   3.59

   FOOD STORES...................    1876   1972   1994   2166   1846   1962   1999   2161   1905   2026   2046   8091   8008   7968
     % CHG SAME QTR LAST YR......   -1.65  -2.06  -0.79   0.30  -1.63  -0.47   0.23  -0.25   3.24   3.26   2.37  -0.52  -1.02  -0.51

   LIQUOR STORES.................      94     98     94    125     95     98     95    127     96    100     97    397    412    415
     % CHG SAME QTR LAST YR......    3.57   3.49   5.13   3.22   0.30   0.37   0.74   1.12   1.36   1.37   1.39   3.29   3.80   0.67

   HOTELS AND MOTELS.............     354    478    503    462    368    490    516    474    377    503    529   1783   1796   1848
     % CHG SAME QTR LAST YR......   -3.79  -0.29   2.40   3.89   3.93   2.63   2.66   2.62   2.58   2.55   2.51  -2.38   0.77   2.89

   OTHER RETAIL AND SERVICE......    4962   5392   5150   6318   4961   5549   5424   6674   5137   5757   5978  21389  21821  22609
     % CHG SAME QTR LAST YR......    2.50   2.47   0.58   2.47   0.00   2.93   5.31   5.64   3.54   3.75  10.21  -0.37   2.02   3.61

   MISC NONDURABLE GOODS.........    1427   1513   1469   1860   1509   1594   1527   1983   1577   1664   1688   6295   6269   6613
     % CHG SAME QTR LAST YR......   -4.15  -2.37  -0.31   4.30   5.72   5.34   3.94   6.64   4.53   4.43  10.54  -0.58  -0.42   5.49

   TRANSPORTATION,COMMUNICATION..    1385   1445   1543   1403   1418   1551   1653   1502   1516   1614   1719   5149   5777   6123
     % CHG SAME QTR LAST YR......   18.83   3.49   6.28  23.69   2.37   7.33   7.08   7.00   6.93   4.06   4.02   9.93  12.20   5.99


 PER CAPITA ($)..................    3009   3295   3231   3524   3067   3373   3356   3657   3169   3449   3504  12969  13059  13453
     % CHG SAME QTR LAST YR......    0.28  -0.32   0.53   2.20   1.93   2.36   3.86   3.78   3.34   2.25   4.40  -0.91   0.70   3.01


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
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                                         TENNESSEE ECONOMETRIC MODEL September 2002 UPDATE
                                                 TABLE 20:  TENNESSEE TAXABLE SALES
                                          MILLIONS OF SEASONALLY ADJUSTED CURRENT DOLLARS

                                      HISTORY                           FORECAST - DATA                                ANNUAL
                                   ------------- -------------------------------------------------------------- --------------------
                                   200201 200202 200203 200204 200301 200302 200303 200304 200401 200402 200403   2001   2002   2003
                                   ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
 TOTAL...........................   18774  18859  18583  19530  19311  19520  19517  20508  20177  20195  20567  74546  75746  78855
     % CHG PREV QTR SAAR.........   -2.88   1.83  -5.72  22.00  -4.43   4.40  -0.05  21.90  -6.31   0.38   7.57  -0.16   1.61   4.10
     % CHG SAME QTR LAST YR......    0.78   0.77   1.60   3.27   2.86   3.50   5.03   5.00   4.48   3.46   5.38  -0.16   1.61   4.10

   AUTO DEALERS..................    2110   2172   2183   2533   2393   2289   2230   2757   2580   2364   2336   8667   8997   9669
     % CHG PREV QTR SAAR.........  -51.63  12.35   2.05  81.24 -20.33 -16.20 -10.07 133.80 -23.35 -29.48  -4.63   3.35   3.81   7.46
     % CHG SAME QTR LAST YR......    3.29   4.69   8.04   0.12  13.43   5.41   2.13   8.85   7.80   3.25   4.78   3.35   3.81   7.46

   PURCHASES FROM MANUFACTURERS..     908    931    975   1010    933    958   1017   1061   1017   1015   1037   3959   3824   3969
     % CHG PREV QTR SAAR.........  -18.28  10.37  20.15  15.39 -27.26  11.17  26.86  18.63 -15.68  -0.63   8.84  -5.80  -3.40   3.78
     % CHG SAME QTR LAST YR......  -13.22  -6.60   1.51   5.75   2.71   2.90   4.31   5.03   8.98   5.97   1.99  -5.80  -3.40   3.78

   MISC DURABLE GOODS............    3051   3078   2925   3152   3137   3190   3242   3248   3201   3228   3221  12364  12205  12818
     % CHG PREV QTR SAAR.........   -8.44   3.64 -18.50  34.94  -1.84   6.86   6.73   0.71  -5.66   3.42  -0.90  -5.01  -1.28   5.02
     % CHG SAME QTR LAST YR......   -2.46  -1.86  -1.90   1.07   2.85   3.64  10.86   3.05   2.03   1.20  -0.66  -5.01  -1.28   5.02

   EATING AND DRINKING PLACES....    1647   1660   1671   1672   1688   1714   1737   1749   1771   1796   1822   6446   6650   6888
     % CHG PREV QTR SAAR.........   -1.09   3.23   2.54   0.18   3.91   6.44   5.42   2.76   5.05   5.83   5.97   3.89   3.17   3.58
     % CHG SAME QTR LAST YR......    3.81   4.31   3.42   1.20   2.46   3.24   3.96   4.62   4.91   4.76   4.89   3.89   3.17   3.58

   FOOD STORES...................    2006   1987   2003   2012   1973   1978   2008   2007   2037   2043   2055   8094   8008   7965
     % CHG PREV QTR SAAR.........    0.10  -3.74   3.20   1.77  -7.46   1.03   6.08  -0.16   6.19   1.10   2.45  -0.47  -1.06  -0.53
     % CHG SAME QTR LAST YR......   -1.70  -2.03  -0.80   0.30  -1.65  -0.46   0.23  -0.25   3.24   3.26   2.37  -0.47  -1.06  -0.53

   LIQUOR STORES.................     103    103    103    103    103    103    104    104    105    105    105    397    412    415
     % CHG PREV QTR SAAR.........   12.56   0.74   0.26   0.07  -0.03   1.13   1.81   1.56   0.95   1.17   1.87   3.17   3.83   0.62
     % CHG SAME QTR LAST YR......    3.48   3.46   5.11   3.28   0.26   0.36   0.74   1.12   1.36   1.37   1.39   3.17   3.83   0.62

   HOTELS AND MOTELS.............     441    448    451    454    457    460    463    466    469    472    475   1786   1795   1848
     % CHG PREV QTR SAAR.........    2.59   7.21   2.75   2.71   2.68   2.64   2.60   2.57   2.53   2.49   2.46  -2.39   0.49   2.94
     % CHG SAME QTR LAST YR......   -3.99  -0.16   2.54   3.80   3.82   2.70   2.66   2.62   2.58   2.55   2.51  -2.39   0.49   2.94

   OTHER RETAIL AND SERVICE......    5503   5497   5303   5516   5497   5658   5585   5827   5692   5870   6155  21392  21819  22567
     % CHG PREV QTR SAAR.........    9.46  -0.44 -13.36  17.01  -1.34  12.26  -5.08  18.48  -8.96  13.15  20.88  -0.45   1.99   3.43
     % CHG SAME QTR LAST YR......    2.29   2.49   0.64   2.52  -0.11   2.94   5.31   5.64   3.54   3.75  10.21  -0.45   1.99   3.43

   MISC NONDURABLE GOODS.........    1566   1553   1524   1618   1653   1636   1585   1726   1728   1709   1752   6307   6262   6600
     % CHG PREV QTR SAAR.........    3.94  -3.38  -7.14  27.01   8.79  -3.96 -12.03  40.71   0.42  -4.32  10.42  -0.42  -0.71   5.39
     % CHG SAME QTR LAST YR......   -4.51  -2.34  -0.05   4.32   5.52   5.36   3.94   6.64   4.53   4.43  10.54  -0.42  -0.71   5.39

   TRANSPORTATION,COMMUNICATION..    1439   1429   1445   1460   1476   1532   1547   1563   1578   1594   1609   5134   5774   6117
     % CHG PREV QTR SAAR.........  120.09  -2.66   4.42   4.38   4.33  15.93   4.13   4.09   4.04   4.00   3.96   9.56  12.46   5.95
     % CHG SAME QTR LAST YR......   19.29   3.14   6.23  23.61   2.57   7.15   7.08   7.00   6.93   4.06   4.02   9.56  12.46   5.95


 PER CAPITA ($)..................    3253   3256   3199   3358   3309   3333   3323   3486   3419   3409   3472  12983  13065  13451
     % CHG PREV QTR SAAR.........   -3.70   0.35  -6.78  21.35  -5.61   2.88  -1.25  21.20  -7.54  -1.16   7.64  -0.91   0.64   2.96
     % CHG SAME QTR LAST YR......   -0.02  -0.23   0.53   2.25   1.74   2.38   3.86   3.83   3.30   2.27   4.49  -0.91   0.64   2.96


                                       CENTER FOR BUSINESS AND ECONOMIC RESEARCH,UT-KNOXVILLE.
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