2023 consumer expenditures outpace income growth in Arkansas

Arkansas’ real personal consumption expenditures (PCE) rose 5.3% in 2023, outpacing real personal income growth of 1.5% in 2023, according to recent data from the U.S. Bureau of Economic Analysis (BEA).

The BEA report, posted Thursday (Dec. 12), shows that 2023 real PCE by state increased in 48 states and the percent change in real PCE ranged from 7.3% in Maine to a 0.6% decline in Alabama. Real PCE for the nation increased 2.5%.

Real personal income increased in 46 states with the percent change ranging from 6% in Vermont to a 2% decline in Iowa. Real personal income for the nation increased 2.1% in 2023.

Arkansas’ real PCE in 2023 was $135.671 billion, up 5.3% compared with $128.944 billion in 2022, and up 13.8% compared with 2021. The main drivers of consumer expenses in 2023 were restaurant/lodging (up 9.9%), healthcare (up 7.5%), housing (up 5.7%), and food (up 4.4%). Arkansas real PCE for gasoline/energy fell 9.1%, and fell 0.6% with motor vehicles and parts, according to the BEA report.

Arkansas’ real personal income was $169.738 billion in 2023, up 1.5% compared with 2023, and below the U.S. growth of 2.1%. Following are 2023 real personal income figures and percent changes among Arkansas’ metro areas.
• Northwest Arkansas: $48.089 billion, up 2.9%
• Little Rock-North Little Rock-Conway: $42.409 billion, up 2.7%
• Fort Smith: $11.48 billion, up 0.9%
• Texarkana: $6.811 billion, up 1%
• Jonesboro: $6.507 billion, up 2%
• Hot Springs: $5.078 billion, up 2.2%
• Pine Bluff: $3.662 billion, down 2.4%