The latest report on state level GDP was accompanied by new data for state personal income for the first quarter of 2025. Arkansas personal income grew at an annual rate of 8.7%, significantly higher than the U.S. growth rate of 6.7%. Arkansas was in in the top ten of state income growth, ranking #6.
All major components of income growth in Arkansas outpaced the U.S. totals, with substantial contributions from capital income (Dividends, interest and rent) and from Transfer receipts. Proprietors’ income comprised the bulk of earnings growth in Arkansas, expanding at a 33.9% rate and contributing 1.8 percentage points to the personal income growth rate.
Not surprisingly, the growth in Proprietors’ income was concentrated in the farm component. Farm proprietors’ income increased at a 237% annual rate, while Nonfarm proprietors’ income was up at at 1.3% rate.
The recent data release included revisions to figures for 2024. The revisions included a slight upward revision to second quarter growth and a slight downward revision to third quarter growth (without altering Arkansas’ ranking as #1 for personal income growth in the Q3). The fourth quarter number was revised upward considerably, from 3.6% to 6.1% (annual rates).
Longer term trends continue to show that Arkansas is outpacing the nation for income growth. Over the past 5 years (from 2020:Q1-2025Q1), Arkansas income growth has cumulatively totaled 42.4% while total U.S. growth has been 35.6%.
After adjusting for inflation (using the Personal Consumption Expenditures Price Index), real income growth over the five year period totaled 18.4% for Arkansas and 12.7% for the U.S.
