The current consumer sentiment index for Arkansas is 84.9, up from 77.8 in September, according to the spring 2016 Arvest Consumer Sentiment Survey, released Tuesday.
The survey, which began in June 2014, has shown a steady increase in consumer sentiment in the state: 67.4 in June 2014; 68.1 in October 2014; and 79.1 in March 2015.
The latest report shows the highest index score for the state since this survey began, and it's the first time Arkansas' index is higher than Oklahoma and Missouri, two other states included in the survey.
Missouri and Oklahoma both reported slight decreases, from 85.8 in September to 83.9 in March in Missouri, and from 85.0 to 81.3 over the same period in Oklahoma. Arkansas also ranked higher than the regional reading of 83.4.
"Reflecting an outperforming Arkansas economy, Arkansas consumer sentiment improved from September 2015 to March 2016," said Kathy Deck, director of the Center for Business and Economic Research at Sam M. Walton School of Business at the University of Arkansas at Fayetteville and the lead economist for the survey.
"The state's improving employment and income situation in both metropolitan and rural areas meant that both higher- and lower-income residents had reasons for optimism," she said.
The Arvest Consumer Sentiment Survey is conducted by the CBER twice a year, with the next survey expected to conclude in August.
Despite a strong increase in most demographic categories in Arkansas, the largest gains in sentiment occurred in two areas. Among respondents who are unemployed, sentiment increased from 70.5 in September to 85.2 in March. Among those who rent their home, sentiment increased from 71.6 in September to 84.3 in March.
The only decline came from Arkansan respondents ages 18 to 24. The March reading of 91.5 was well below September’s reading of 121.0.
"Communities across Arkansas are experiencing steady business development and that's encouraging to Arkansans," said Jim Cargill, president of Arvest Bank in central Arkansas. "That consumer confidence translates to positive mortgage lending, which we are seeing, so it appears that our customers are satisfied with where they are financially now, and where they anticipate they will be in the future."
The current regional index for Arkansas, Oklahoma and Missouri – including Greater Kansas City – is 83.4, up from September’s index of 82.6. The increase is aligned with movement within the national index, as reported by Thomson Reuters and the University of Michigan. The national index was 90.0 for March, up from 87.2 in September.