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Arvest Survey Shows Rising Consumer Sentiment in Arkansas

2 min read

Rising optimism among Arkansas couples with no children and the unemployed helped drive an increase in consumer sentiment this year, according to the Spring 2015 Arvest Consumer Sentiment Survey.

The survey, conducted in March and released Tuesday, put the consumer sentiment index for Arkansas at 79.1, up from 68.1 in October and 67.4 in June 2014’s inaugural survey. 

The survey also includes consumers in Oklahoma and Missouri, including greater Kansas City. The overall regional consumer sentiment index was 83.2, up from 72.6 in October and 71.4 in June.

The survey said that in Arkansas, the largest gains came from three areas:

  • Among respondents with no children, the index rose from 59.7 in October to 92.9 in March.
  • Among 18- to 24-year-olds, the index increased from 92.4 in October to 113.0.
  • Among unemployed Arkansans, the sentiment jumped from 66.5 to 90.8.

“Arkansas consumer sentiment jumped up dramatically from October 2014 to March 2015,” said Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas’ Sam M. Walton School of Business, who led the survey. 

“The state’s improving employment and income situation, along with lower gasoline prices at the pump, gave consumers a boost in both perceived current conditions and near-term expectations,” she said.

The survey’s summary (Word doc) said Arkansas residents “enjoyed declining gasoline prices at the pump, increasing employment and slowly rising incomes in the past year. The improved readings on components of consumer sentiment in Arkansas were consistent with the positive economic data that have been reported. As unemployment rates were improving, the labor force was growing again and personal income growth was noticeable at the end of 2014.”

John Womack, president and CEO of Arvest Bank in central Arkansas, said the increase in Arkansas’ index is a sign that people are feeling better about their personal finances and the regional economy.

“As their confidence grows, they will feel better about buying needed items for their families and maybe taking on some personal debt,” Womack said. “Knowing this helps us to prepare to meet their financial needs in a way that works best for them.”

The regional index of 83.2 is close to the national index of 85.3, as reported by Thomson Reuters and the University of Michigan. The national index was 86.9 in October.

Of the three states in the survey, Oklahoma showed the biggest change, with its index increasing from 72.6 to 84.8. Missouri rose from 77.4 to 85.2, the highest in the region.

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