Personal Income Grows By 3% In the First Quarter

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Oklahoma’s economy continues to grow along with that of the nation as a whole - in which economic growth accelerated under “a narrower trade gap and growing inventories amid weaker consumer demand,” according to a recent report issued by the Oklahoma Employment Security Commission and Economic Research and Analysis Division.

The nation’s real gross domestic product increased at an annual rate of 3.1%, following an increase of 2.2% in the previous quarter. While overall consumer spending was down, business spending was up and stronger than economists’ estimates, driven largely by investment in intellectual property products such as computer software.

Spending among state and local governments boosted overall government investment from the previous quarter, despite lower federal investment spending. Spurred by a jump in exports of 5.4%, the trade deficit narrowed in the first quarter, adding nearly 1% to the real gross domestic product.

Oklahoma’s real gross domestic product grew at a 5.5% pace in the fourth quarter of 2018, which ranked third for growth among all other states with a $2.6 billion increase in constant 2012 dollars.

Three main industries experienced growth both in Oklahoma and nationally; wholesale trade, mining and information services. Mining saw the largest increase at 38% nationally and was a leading contributor to growth in gross domestic product for not only Oklahoma but Texas, Wyoming, Alaska and New Mexico, while information services and wholesale trade increased 8.9% and 9.1% respectfully on the national level.

Overall the state’s real gross domestic product increased in 2017. Although, the Lawton Metropolitan Statistical Area accounts for nearly 3.3% of Oklahoma’s overall population, it only contributed 2.6% to the overall state real gross domestic product in 2017. The Lawton area’s impact contracted 0.1% to $5.2 billion in 2017.

Of 383 metropolitan areas nationally, Enid saw the largest decline in the real gross domestic product, los- ing 7.8% in 2017 led by reductions in mining and natural resource ex- traction in the area. In fact, three of the four metropolitan areas in Oklahoma experienced negative growth, with Enid, Lawton and Tulsa contracting. Oklahoma City grew 2.3% during that time, lifted by natural resource extraction, mining, and professional and business services.

While the U.S. unemployment rate rose slightly in June, Oklahoma’s overall rate declined, with both sit- ting at or near all-time lows. Unemployment in Oklahoma ranged from a high of 5.2% in Latimer County to a low of 1.6% in Cimarron and Dewey counties. Both in Oklahoma and nationally, the number of new unemployment claims continues to decrease on a weekly basis, also near all-time lows.

Job growth helped spur the low unemployment rates, with an in- crease of 224,000 non-farm payroll jobs nationally in June, with gains in professional and business services, health care, and in transportation and warehousing. Oklahoma’s non- farm employment fell by roughly 1,700 jobs in May after adding nearly 25,000 jobs during 2018 across nine different industries.

Crude oil production is a driving force in Oklahoma’s economy. In 2017, the state was the sixth largest producing state at 165.9 million barrels. Nationally, crude oil production continues to reach record highs, surpassing 12 million barrels per day in April 2019 for the first time.

Oklahoma production reached a record 617,000 barrels per day in the same month, despite the active rig count in Oklahoma reaching a two- year low. Natural gas production in Oklahoma is big business, as well. Oklahoma ranked fourth among all states in the production of natural gas in 2017 and accounted for 8.6% of overall U.S. gross production. Statewide production slowed a bit in April 2019 after nearly record highs reached in March. The number of natural gas rigs in Oklahoma has remained mostly stagnant over the last few years.

Oklahoma’s personal income grew 3% in the first quarter of 2019 to $186.1 billion from $184.7 billion in the previous quarter spurred by mining, quarrying, and oil and gas extraction earnings growth. Over- all earnings grew 1.2% in Oklahoma during the first quarter of 2019 compared to 2.8% nationally. Retail spending grew in May 2019 both on the state and national levels, for the third month in a row.


Data and information contained within this article is from the publication, “Oklahoma Economic Indicators” published in July 2019 by the Oklahoma Employment Security Commission.