A survey by Middle Tennessee State University's consumer research office found that consumers in a three-county area more optimistic about the future than at any time since February 2008, before recession became a scary household word.
It may be that consumers are thinking, "It cannot get much worse, so it has to get better," said Timothy Graeff, director of consumer research.
MTSU's consumer confidence index rose to a score of 142 in September, up from 113 in May and the highest marks since February 2008. The index, which tracks consumers' attitudes, is based on a poll of 450 adults in Davidson, Rutherford and Williamson counties conducted on Monday and Wednesday evenings this week.
One drag on consumer confidence is the weak labor market, according to Graeff, but at least that's showing some signs of stabilizing.
The unemployment rate in Tennessee for August was 10.8 percent, about what it's been all summer, according to the state Labor and Workforce Development Department. That's a sign the jobless rate may be peaking here, officials said.
"It may well be that we're at or near the peak level of unemployment," said Bill Ford, former president of the Federal Reserve Bank of Atlanta and a finance professor at Middle Tennessee State University.
The rate could tick up to 11 percent before year's end, he said, and then slowly drift back down in 2010.
One other thing to be cautious about is that retailers in Nashville say they plan to hire fewer people for the holiday shopping season in the weeks ahead, which means Christmas temporary employment opportunities may be scarce.
Outdoor goods retailer Bass Pro Shops in Opry Mills plans to bring on 15 to 20 people to work from November to January, compared with 35 seasonal hires last year.
"We've had a lot less turnover throughout the year, so the need for more is just not there," said Memory Kinslow, the store's human resources manager.
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