The national economy continues to grow as real GNP expanded by a stronger than expected 3.3 percent over the past year. Industrial production grew by an alarming 5.0 percent creating concern that demand pressure will cause a further acceleration in inflation. The Federal Reserve System in an attempt to choke off inflationary pressures has tightened money and credit conditions. The effect can be readily seen in soaring short-term interest rates which have risen from 5.69 percent to 9.10 percent over the past twelve months. Inflation has been held in check, but even at 4.4 percent it can become a burden to the country. It is unlikely that the Federal Reserve will tolerate inflation rates much above current levels for any length of time.

     Unemployment rates, for the most part, were substantially below last year's marks. Only Portage County saw an increase in the unemployment rate, but this came in the face of rising employment. Employment in the three counties hit record highs regardless of the time of year. There are approximately 7000 more people working in Central Wisconsin than one year ago. Thus, the expansion continues to be broadly based.

     Employment growth was greatest in the services sector with nearly 3000 jobs being created in the region. Manufacturing added 1500 people to local payrolls. This sector has done extremely well over the past several years. Retail and wholesale trade activity generated approximately 1200 new jobs. Overall, nonfarm employment grew from 105.9 thousand to 111.3 thousand, an all time high for the region.

     Key regional industries turned in solid performances. This is a positive sign for the area because the economic health of the Central Wisconsin region is fundamentally tied to these activities. Key sector employment soared by 5.6 percent or 1400 jobs over the past twelve months. The finance, insurance, and real estate category showed the greatest gain. Food processing, lumber and wood products, and paper products all grew by respectable percentages. In addition regional business leaders expect matters to improve somewhat in the months ahead - another favorable indicator for Central Wisconsin.

     Without question Portage County experienced continued growth and prosperity during the year. Nearly all measures of economic performance were positive. The only major disappointment was in the residential construction area, which evidenced a slowdown. Unless national economic conditions turn sour, local variables point 'toward a further expansion in the Stevens Point area.