Arkansas’ economic expansion continued in the last months of 2024 and positions the state to continue building momentum as the year opens, according to a regional economic analysis released Wednesday.

Nevertheless, rising prices could hinder growth and business executives are worried about persisting inflation and the potential economic hurdles that tariff increases could create. Christmas holiday sales were uplifting, coming in better than expected and brightening the outlook for 2025.

Sales were helped by a late Thanksgiving that fueled a spending spree and delivered a kickstart to the year, the Federal Reserve Bank reported Wednesday in its Beige Book economic analysis. The report covers 12 regional districts, including Arkansas and surrounding states in the St. Louis district.

“Retailers in our district indicated that December sales were stronger than in previous years,” Charles Gascon, the Fed economist for the Arkansas region, said Wednesday.