OKLAHOMA CITY — Treasury gross receipts in February show Oklahoma’s economy continues to grow, but the Russian invasion of Ukraine is raising many concerns, including inflationary pressure, the state treasurer said recently. ‘State, Randy McDaniel.
February gross receipts of $1.06 billion were up nearly 12% from the same month last year. This is a record for February collections, but it reflects the slowest rate of growth in seven months. Year-over-year revenue of $15.61 billion was up more than 19% from the prior period.
Treasurer McDaniel urged caution despite revenue growth.
“The repercussions of Russia’s invasion of Ukraine are only beginning to be felt,” McDaniel said. “The attack caused the death and destruction of the Ukrainian people, and it poses an unacceptable threat to economic stability here at home.”
The annual inflation rate reached 7.5% in January, up half a percentage point from December. Soaring oil prices fueled by the Ukrainian war and the ripple effect of Russian sanctions are expected to impact inflation in the months ahead.
Gross production collections in February jumped 95.3%. Those monthly payments come from December sales when West Texas Intermediate crude oil averaged $70.71 per barrel and Henry Hub natural gas was priced at $3.76 per million BTU. Increased gross production collections are expected in the coming months. February prices, reflected in April earnings, averaged $91.64 for crude oil and $4.69 for natural gas.
The February gross receipts report shows growth in all major revenue sources. Combined personal and business receipts increased 9.1%, sales taxes increased 6.5% and motor vehicle collections increased 17.5%.
Year-over-year collections were up $2.5 billion, or 19.1%, from the previous 12 months, with the top four revenue streams showing an expansion of 130.3% in gross production receipts to 13 .5% of total income tax.
Oklahoma’s monthly Business Conditions Index improved despite concerns over the Russian invasion of Ukraine. The February index was pegged at 68.1, down from 59.6 in January, but down from 70.3 in December. The outlook remains positive as numbers above 50 indicate an expected expansion over the next three to six months.
Oklahoma’s January unemployment rate won’t be released until mid-March. The state rate in December was reported at 2.3% by the US Bureau of Labor Statistics. The unemployment rate in the United States fell from 3.9% in December to 4% in January. About Gross Treasury Receipts
The Monthly Gross Revenue to the Treasury Report, compiled by the Office of the State Treasurer, provides an overview of the state’s economy.
The General Revenue Fund, the state’s main operating account, receives less than half of the state’s gross revenue, with the rest going to other state funds, given to cities and counties and paid in the form of rebates and refunds.