Economic survey suggests improvement in January

Results from a monthly survey of business supply managers suggest economic conditions continue to improve in nine Midwest and Plains states, and that confidence in the regional economy is at its highest level in six years.

The Mid-America Business Conditions Index report released Wednesday said the overall economic index for the region rose to 54.7 in January from 53.1 in December and 46.5 in November. It’s the highest figure since February 2015.

“This is the third consecutive month the index has increased, and (it) points to an improving regional manufacturing economy,” said Creighton University economist Ernie Goss, who oversees the survey. “I expect this to generate even healthier growth for both manufacturing and nonmanufacturing for the first half of 2017.”

The survey results are compiled into a collection of indexes ranging from zero to 100. Survey organizers say any score above 50 suggests growth, while a score below 50 indicates decline. The survey covers

Last year’s legislation

Last year, however, Oklahoma lawmakers struck a balance by approving the Retail Protection Act of 2016, which requires online retailers to either collect the tax or notify customers once a year how much they owe the state.

Fallin, for example, said she recently got a personal email from one retailer notifying her that she owed money to the state for an online purchase.

Paula Ross, a spokeswoman for the Oklahoma Tax Commission, said Thursday the state contacted more than 500 online retailers last year after Fallin signed the act.

Ross said the agency informed them of how their status as an in-state retailer might change under the law, and that they were required to inform their Oklahoma buyers of their tax liabilities. Oklahoma, Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota.

Looking ahead six months, economic optimism rose to 69.5 in January from 63.3 in December. It’s the highest confidence reading recorded in six years, Goss said.

The January employment index soared to its highest level since August 2014, hitting 57.0, compared with December’s 50.9. Goss said the key to regional job growth in the first half of 2017 will be improvements in agriculture and energy commodity

“I think our negotiations are going well,” Ross said, referring to the state’s efforts to inform online retailers of those requirements, plus letting them know they could voluntarily collect and remit those taxes to the state using a streamlined system that lets them register, file and pay those taxes without significantly increasing their record keeping and paperwork burdens.

“There is so much online sales now, it has become just critical not only to help our local brick-and-mortar businesses, but also jurisdictions who heavily depend on sales tax revenues.”

Praise for hard work

Kiley Raper, CEO of the Oklahoma Retail Merchants Association, said Thursday Fallin’s announcement was a welcome surprise.

She praised the Oklahoma prices.

The prices-paid index jumped to 74.2 from 70.4 in December, reflecting rising inflationary pressures at the wholesale level.

“This is the highest wholesale inflation gauge that we have recorded since April 2014,” Goss said.

The Bureau of Labor Statistics releases its consumer price index on Feb. 15. Goss said if the overall reading continues to move higher, he expects the Federal Reserve to increase short-term interest rates in the first quarter of this year. Tax Commission for its hard work on the issue, and also state Rep. Chad Caldwell, R-Enid, who authored the Retail Protection Act and helped it survive several close votes last year on its way to becoming a state law.

On Thursday, Caldwell issued a statement praising Fallin’s announcement.

“This will keep millions of dollars in our state that will go toward educating Oklahoma’s children, paving our roads and providing health care for our citizens,” he said, adding the deal is one he hopes and expects other internet retailers to also make with the state.

Raper, meanwhile, said the merchant association’s members are excited.

“This is a big deal,” she said, of Oklahoma’s agreement with Amazon. “We were not anticipating it coming through this fast.”