The Oklahoma City Branch of the Federal Reserve Bank of Kansas City released the latest Oklahoma Economic Snapshot showing the state’s economy is starting to pick up following the shutdown caused by the coronavirus pandemic.
“Since March, COVID-19 and the collapse in commodity prices have presented significant challenges for the state and U.S. economies. Oklahoma employment has fallen sharply, especially in hospitality and energy, while tax collections have dropped, and many businesses worry about survival.” said Chad Wilkerson, Oklahoma City Branch executive and economist at the Federal Reserve Bank of Kansas City. “However, state economic activity is starting to pick up and a strong national policy response should help.”
The report concluded several findings including “Weaker demand and significantly lower oil prices are holding down consumer price inflation.”
” “To support the flow of credit to households and businesses…[the Fed] will increase its holdings.”
“In Oklahoma, job growth fell by 8.7% in April, with similar sharp drops in OKC and Tulsa.”
“State and metro hospitality job losses were less than in the nation, but energy cuts were bigger.”
“State sales tax collections were down more than 10% in
May, and city sales tax receipts were down even more.”
“Oklahoma’s state and metro unemployment rates
jumped in April, similar to the U.S. rate of 14.7%.”
“New state claims for unemployment insurance eased
some in May, but continuing claims are historically high.”
“Regional factory activity continued to decline in May,
but not as sharply compared to last month’s record low.”
Click here to view entire report.