Sentiment Peaks as Unemployment Falls

FAYETTEVILLE — As the nation’s economy expanded over the summer months, Arkansans reported feeling more confident than at any time in the past two years, according to the Fall 2016 Arvest Consumer Sentiment Survey released Oct. 11.

The current consumer sentiment index for Arkansas is 86.7, up from 84.9 in March and significantly higher than the 77.8 reported in September 2015. This is the highest index score for the state since this survey began in the Spring of 2014.

In Arkansas, consumer opinion as surveyed in August even ranked higher than the regional reading of 85.6.

“In August 2016, the Arkansas unemployment rate was among the lowest in the United States, even as the national economic expansion continued,” said Kathy Deck, director of the Center for Business and Economic Research (CBER), Sam M. Walton School of Business at the University of Arkansas and the lead economist for the survey. “Unsurprisingly, consumer sentiment in Arkansas was at its highest measured level since the inception of the Arvest Consumer Sentiment Index. Moreover, the increase in sentiment was widespread in families with both higher and lower incomes.”

Most demographic cate- gories in Arkansas showed increases, led by three specific areas. Among families who earn more than $ 75,000 a year in income, sentiment increased from 86.3 in March to 95.6 in August. Among respondents age 18 to 24, sentiment increased from 91.5 in March to 95.5 in August. The biggest gain was among respondents with a bachelor’s degree, whose sentiment increased from 85.8 in March to 96.9 in August.