Treasurer releases July economic report showing balanced growth, cooling economy
The report showed higher sales and use tax collections, continued manufacturing expansion, and a resilient labor market alongside signs of slower economic growth.
OKLAHOMA CITY (OBV) — Oklahoma State Treasurer Todd Russ released the office’s July Economic Outlook, reporting continued revenue growth and manufacturing expansion alongside signs of a gradually cooling economy.
“July’s economic data shows Oklahoma continues to demonstrate resilience as economic conditions evolve,” Russ said.
Sales and use tax collections increased by $50.4 million, or 8.5%, compared with July 2025. Income tax collections rose by $1.8 million, or 0.4%.
Gross production tax collections decreased by $12.5 million, or 9.9%, from the same month last year. The report said collections remained essentially steady from June, while the rolling 12-month trend continued to show growth in Oklahoma’s oil and natural gas sector.
Motor vehicle tax collections fell by $2.2 million, or 2.8%, and other tax sources declined by approximately $700,000, or 0.5%.
Oklahoma’s manufacturing sector continued to expand in July. The state’s Business Conditions Index registered 52.5, remaining above the growth-neutral level of 50. Strong new orders, production, and inventories supported overall activity, although manufacturing employment slipped below growth neutral.
The state’s unemployment rate increased slightly to 4.2%, while the national rate declined to 4.1%. The report described the labor market as resilient, with employment remaining relatively strong despite slower hiring.
Inflation also showed signs of moderation. The Personal Consumption Expenditures price index increased 3.7% over the year in June, down from 4.1% in May. Consumer prices rose 0.1% in July after declining in June.
Energy activity remained strong, with the average West Texas Intermediate crude oil price at $80.46 per barrel and Oklahoma’s average rig count reaching 50. The report said elevated oil prices and stronger drilling activity continued to support the state’s energy sector and gross production tax collections.
