Arkansas' real gross domestic product (GDP) increased at an annual rate of 1.1% in the second quarter of 2026, falling short of the national growth rate of 2.2%, according to the U.S. Bureau of Economic Analysis (BEA). This rise followed a decline of 0.3% in the first quarter of 2026. In comparison, Arkansas' GDP had grown by 1.7% in the second quarter of 2025.

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The BEA report represents the third and final estimate for the state and national GDP for the second quarter. Over the past four quarters, Arkansas experienced the following GDP changes:

- Q2 2026: 1.1%

- Q1 2026: –0.3%

- Q4 2025: 1%

- Q3 2025: 2.5%

In terms of GDP growth ranking, Arkansas placed 34th among the 50 states and the District of Columbia. Key sectors contributing to growth in Arkansas included durable goods manufacturing and wholesale trade, which helped balance declines in transportation, warehousing, and nondurable goods manufacturing.

The BEA also indicated that personal income in Arkansas grew by 2.2% in the second quarter, again below the U.S. rate of 4.7% and significantly lower than the 4.9% growth reported in the first quarter of the year. Key sectors within Arkansas that showed notable GDP changes included:

- Durable goods manufacturing: 0.78%

- Wholesale trade: 0.47%

- Real estate, rental and leasing: 0.35%

- Information: 0.35%

- Transportation and warehousing: –0.61%

- Retail trade: –0.37%

- Nondurable goods manufacturing: –0.32%

Dr. Michael Pakko, chief economist and state economic forecaster at the Arkansas Economic Development Institute, noted that the report included significant revisions reflecting lower economic activity in the state than previously reported. As of the first quarter of 2026, Arkansas' GDP is now estimated to be 2.5% lower than previously stated three months ago. Pakko pointed out that the downward revision was largely attributable to the agriculture sector (41%), durable goods manufacturing (54%), and management of companies and enterprises (59%). Conversely, sectors showing higher-than-expected growth included nondurable goods manufacturing and finance & insurance.

On a national level, the BEA reported that U.S. GDP rose at an annual rate of 2.2% in Q2 2026, an improvement from the 1.5% reported in the previous estimate. GDP growth occurred in 44 states and D.C., with annual change rates ranging from 4% in New York to a 2.3% decline in West Virginia. The upward revision was primarily tied to increases in service exports and consumer spending on goods and services. In the same quarter, current-dollar personal income across the U.S. rose by $314.3 billion, or 4.7% at an annual rate, with increases in personal income seen in 49 states.