States Consumer Confidence is Up

Arkansans as a whole are feeling better about the economy, but not a whole lot better. According to the latest Arvest Consumer Sentiment Survey released Tuesday, the index is at 68.1, up from 67.4 in June’s inaugural survey.

While the state’s confidence is up, it still trails the national index of 86.9, as reported by Thomson Reuters and the University of Michigan.

However, among Arkansans between the ages of 18 and 24 who were surveyed in September and October, the index surged from 54.8 in June to 92.4. Respondents with a college degree also showed confidence, as the index moved from 60.8 to 74.5.

“Just as national consumers expressed more positive attitudes in October than in June, Arkansans also reported feeling a bit better about current economic conditions and the longer term outlook,” said Kathy Deck, director of the Center for Business and Economic Research at the Sam M. Walton School of Business at the University of Arkansas, and the lead economist for the survey. “Sentiment is strongest among the young and well-educated, so as the Arkansas workforce shifts in those directions, we expect to see more upbeat numbers.”

Regional sentiment — a collective measurement of Arkansas, Oklahoma and Missouri — also is generally more positive, increasing from 71.4 in June to 72.6.

Of the three states surveyed, Missouri showed the biggest change, with its index jumping from 68.6 to 77.4. Oklahoma, meanwhile, was the only state to show a decline, from 76.4 to 72.6.

“We knew when we released our initial survey in August that subsequent surveys will show us how consumers’ opinions in Arkansas change over time,” said Craig Rivaldo, Arvest Bank president in Benton County. “According to these results, Arkansas consumers seem to be gaining confidence in the economy and in their personal financial situations, too. Viewing that optimism through these results helps us know how to better help meet the financial needs of consumers.”

The Arvest survey is a joint project by UA, the University of Oklahoma, Missouri State University and Oklahoma City University. The survey is conducted twice a year, with the next survey expected to be completed in May 2015.

With each study, the index score will be released first, followed by additional information regarding specifics of consumer outlook for the near future and plans for savings and spending.