(The Center Square) - Oklahoma's gross receipts remain at a record high, but interest rates are clouding the economic picture, according to State Treasurer Todd Russ.
According to January numbers released Wednesday, the state collected $17.48 billion in gross receipts year-over-year, a 12.8% increase and a new record high. Gross receipts were up 2.7% when compared to January of last year.
"The Gross Receipts report shows noteworthy improvement," Russ said. "Even so, higher interest rates are causing a slowdown in housing demand and other economic activity."
Last week, the Federal Reserve increased the target range for federal funds from 4.25% to 4.75%. The Federal Open Market Committee said in a statement the situation in Ukraine "is causing tremendous human and economic hardship and is contributing to elevated global uncertainty." The FOMC noted job gains and improving inflation but said it was paying attention to inflationary risks.
Gross receipts make up less than half of the general fund, according to Russ. Cities, counties and other state funds receive the remainder of the collections.
Oklahoma's economic outlook is improving, but the Oklahoma Business Conditions Index produced by Creighton University indicates a possible contraction in the next three to six months. The state's index rose from 40.2 in December to 43.3, according to Russ.
The state's sales and use tax collections outpaced the rate of inflation. Collections grew 6.5% year-over-year, while the rate of inflation increased by 8.6%.
Oil and tax gross production tax collections were up 59.9% year-over-year to nearly $2 billion, according to the treasurer's office.
via Oklahoma's Center Square News