May marked the 17th month that the Oklahoma Business Conditions Index remained above growth-neutral; it dipped to a reading of 68.2 from April’s 68.8.
A number greater than 50 points to expansion in the next three to six months, while less than 50 indicates contraction.
Ernie Goss, a Creighton economics professor who compiles the report, attributes Oklahoma’s high index reading and confidence among survey participants in the Mid-American region to the performance of the energy industry and export growth.
“The state’s large energy sector is benefiting from higher energy commodity prices. However due to very strong productivity growth, this sector has grown sales much more briskly than employment. This growth along with rapid growth among the state’s durable goods producers has pushed commercial and industrial construction higher and more than offset a weak Oklahoma residential housing sector,” Goss said.
POSITIVE ATTITUDES
Among individual components of the index, Oklahoma’s new orders were at 74.6, production or sales at 73.1, inventories at 69.9 and employment at 59.8.
Exports are driving growth for some companies as the domestic economy’s recovery trails the global rebound, Goss said.
Although the construction sector has not rebounded, it’s not nearly as weak in Oklahoma as in many states, he said, adding that people in Oklahoma are much more positive about future construction activity.
Oklahoma’s confidence index, which is separate from the overall index, was “good and strong” at 64.3, Goss said.
“If you look at the job growth in Oklahoma, it’s outperforming the rest of the region and, for that matter, the nation.”