Arkansas consumers increased their savings rates between March and September thanks to lower gas prices, and they expect to take on more auto loans and credit card debt in the next six months.
Those are among the findings from the third installment of the Fall 2015 Arvest Consumer Sentiment Survey released Tuesday. This installment focuses on consumers’ attitudes about spending, saving and debt.
Arkansas consumers’ household savings rate increased from 11.6 percent to 13.9 percent from March to September, the survey said. While the percentage of those planning to increase their savings rate fell from 20 percent to 14 percent, the number of Arkansas consumers planning to maintain their rate of savings went from 73 percent to 77 percent.
Arkansans’ consumer debt also remained below that of their neighbors in Missouri, including Greater Kansas City, in all categories except for auto loans and student loans.
For Arkansans planning on acquiring debt in the next six months, the largest percentage was those seeking student loans at 6 percent, up from 5 percent in March.
"It appears that low gasoline prices helped both higher- and lower-income families increase their savings rates," said Kathy Deck, director of the Center for Business and Economic Research in the Sam M. Walton College of Business at the University of Arkansas and lead economist for the survey.
"As a result, fewer Arkansans indicated a desire to increase their savings further and more respondents indicated that they would either keep their current rate or decrease savings somewhat in the coming six months," she said. "More Arkansas respondents also indicated that they would be seeking auto loans and credit cards in September than in any of the previous Arvest Consumer Sentiment Surveys."
In Arkansas, 24 percent said they plan to make a major household purchase in the next six months, the same as in March. Major household purchases include items such as furniture, televisions and refrigerators. Those who said they had made a major household purchase in the past six months went down 2 percent to 37 percent in September.
The Arvest Consumer Sentiment Survey is conducted twice a year through 1,200 random phone surveys. The next round of results are scheduled for May.