Oil and gas revenues falling, Oklahoma's other economic indicators remain strong
Oil and natural gas production taxes significantly decreased in June 2023, while inflation and the state unemployment rate fell, according to State Treasurer Todd Russ’ monthly economic report.
Compared to June 2022, the collections from an oil and natural gas tax dropped by 42.7%, over $73 million. Russ wrote in the report that this decline is evidence of a downward trend in energy prices.
Russ included in the report statistics from AAA, showing the national average price of a gallon of unleaded gas surpassed $5 for the first time in June 2022. A year later, that average is now $3.22 according to the report.
Motor vehicle tax also fell by 4.7%, or over $3 million. However, sales and use tax rose by nearly 5%, or an increase of nearly $28 million. Gross income tax collections increased by 3.2%, or slightly over $17 million.
According to Creighton University’s Mid-America Business Conditions Index, which seeks to identify and analyze key resources for organizations to operate, the June index reading of 50.8 indicates moderate economic expansion over the next three to six months.
Russ pointed to the U.S. Bureau of Labor Statistics report, showing the country’s inflation rate dropped to 4% in May. Russ wrote this shows inflation is remaining on a downward trajectory. However, the food index is higher than overall inflation, ending in May at 6.7%.
The U.S. unemployment rate rose to 3.7% in May, though Russ wrote Oklahoma’s rate fell slightly, ending at 2.8% for May.