The latest data from the Bureau of Economic analysis shows that Arkansas personal income increased at an annual rate of 3.7% in the first quarter of 2026. The growth rate of U.S. GDP for the same period was 3.4%.
In addition to the growth reported for the first quarter, the data for 2025 were also revised higher for Arkansas. Previous estimates showed fourth-quarter growth rate of only 0.7%. The revised data now indicate a growth rate of 3.0%. For the period from 2024:Q4 through 2025:Q4, the revisions raised the growth rate from 3.1% to 3.8%.
A breakdown of the components of personal income growth shows shows growth in all categories of earnings, with particularly strong growth in Proprietors’ Income. At an annualized growth rate of 13.6%, Proprietors’ Income contributed 0.7 percentage points to total Personal Income Growth.
The increase in Proprietors’ Income was entirely attributable to Farm Income. Nonfarm Proprietors’ income declined slightly in the first quarter (-0.3% at an annual rate). Farm income increased at a rate of 91.4%. Nevertheless, the recent swings in that category of income left it down 57.2% from its peak four quarters earlier.
On a year-over year basis, Arkansas Personal Income was up by 2.4%, while the U.S. total was 3.6% higher. Much of the relatively slow growth is attributable to the peak in Farm Proprietors’ Income in the first quarter of 2025. If we remove Farm Income component, Arkansas Personal Income would be 4.2% higher than a year ago.
