Arkansans Use Low Gas Prices to Increase Savings

The third installment of the Fall 2015 Arvest Consumer Sentiment Survey was released today. The survey was conducted in September and focuses on consumers’ attitudes concerning spending, saving and debt.

Arkansas consumers’ household savings rate increased from 11.6 percent to 13.9 percent from March to September. 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 current rate of savings went from 73 percent to 77 percent.

Arkansans’ consumer debt also remained below that of their neighbors in Missouri in all categories except for auto loans and student loans. Arkansas respondents reported that 35 percent had auto loans in September, while Missouri respondents reported 31 percent, and 26 percent of Arkansas respondents reported outstanding student loans compared to 15 percent in Missouri.

 “Like their national counterparts, Arkansans reported being able to increase savings rates from March 2015 to September 2015,” said Kathy Deck, director of the Center for Business and Economic Research (CBER) in the Sam M. Walton College of Business at the University of Arkansas and lead economist for the survey. “It appears that low gasoline prices helped both higher- and lower-income families increase their savings rates.”

Fewer Arkansans want to continue to increase their savings, and would either keep their current rate or decrease savings somewhat in the coming six months. More respondents also indicated that they would be seeking more auto loans and credit cards in September than any of the previous Arvest Consumer Sentiment Surveys.

“As consumer confidence remains high, we have seen increases in inquiries for auto loans and credit cards in the last half of the year,” said Rodney Shepard, president at Arvest Bank in Fort Smith. “It’s an indication that customers are feeling positive about their personal financial situation.”

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 in Sept.

Arvest Bank’s sponsorship of this survey, which follows the model of the national Survey of Consumers produced by the University of Michigan, is due to its desire to provide beneficial data for its customers and communities.

The data provides a reading of how consumers are feeling about the economy in the states where the bank operates. Additionally, with future results, consumers, as well as the business community, will be able to see how sentiment is trending.

More information about the survey can be found at www.arvestconsumersurvey.com.