Economic data for First Quarter 1998 suggests that the local economy was in a very sluggish mode. Industrial sector employment growth was estimated at a scant 0.3 percent and area merchants indicated that store traffic and sales were at about the same level as a year ago. Help wanted advertising fell sharply, declining 42 percent. Unemployment claims data were higher for both new and total claims. 

     However, not all the economic indicators were pessimistic. Retailers believe that consumption activity will rebound with the weather and public assistance claim data are lower than in 1995. Residential and nonresidential constriction held up surprisingly well given the harsh weather and the national weakness in these types of activities. Finally, the financial statistics for this quarter were well above the inflation rate, meaning that real increases transpired over the twelve‑month period. 

     Nonfarm employment growth was almost nonexistent during First Quarter 1998. The figures in Table 7 imply that nonfarm employment expanded from 29,450 to just 29,538 or 0.3 percent from last year. Services and government payrolls rose by 2.0 and 1.7 percent respectively. Manufacturing and trade employment fell 1.8 and 2.8 percent. Further, construction payrolls were unchanged at 800. Clearly a slow down in industrial sector employment is evident in the local area for First Quarter. 

     Further, Table 8 shows the sentiments of local merchants with regard to retail activity. While the marks of 57 and 52 are above neutral for the questions total sales and traffic compared to the previous year, the marks are quite low when compared to the historic norms. The harsh winter of 1998 surely played a major role in these results. The optimism level for future retail activity was more positive. Local merchants' assessment of future store traffic and sales was much above last quarter's levels of confidence. Thus, local merchants are forecasting a rebound in activity ff and when the weather improves. 

     First Quarter was also weak in terms of the amount of help wanted advertising (Table 9). The index for Stevens Point fell from 278 to 180 over the past twelve months. This decline of 42 percent not only reflects the economic conditions in the local area, but those of a good part of the state. The weather and an overall sluggishness to the economy conspired to determine this quarter's outcome. 

     Table 10 presents public assistance claims for Portage county. Both new and total claims declined from one year ago. Reportedly, much effort has been made of late by public assistance officials to integrate public assistance recipients into the workforce. This has been done in anticipation of the state's new W2 plan which requires people to find work after a limited period of receiving pubic assistance. 

     New unemployment claims in Stevens Point rose from 53 to 80 and likewise total claims climbed from 150 to 184 (Table 11). Besides reflecting a general increase in unemployment claims, the data also reflects a new method of data collection on the part of the state. The new method of claim reporting entails filers using the telephone to make their claim to a central office. Hence, data collection is now online and faster than the old method of filing at local offices. Thus, any time lag that previously existed in collecting the data from the local offices has been eliminated. 

     Good news comes in the form of residential construction activity for the Stevens Point‑Plover area (Table 12). Four of the five categories of activity were higher than last year's marks. The estimated dollar amount of new homes was up by 9.2 percent and the number of housing units rose by 34.5 percent. The number of Residential alteration permits was 13.8 percent better than last year and their estimated value about 7.0 percent above the previous year. However, the number of residential permits was unchanged from last year, stuck at 28. 

     The volatile nonresidential construction figures are presented without percent change in Table 13. The number of building projects totaled 7 with an estimated value $2.3 million. Further, there were 34 alteration permits issued with an estimated value of $0.9 million. Thus, progress is being made with regard to additions to be local capital stock. 

     Financial statistics for Portage county are given in Table 14. Good news also can be reported from our sample of local institutions. Bank deposits rose from $340.7 to $369.1 million, or 8.3 percent. Lending activity increased from $314.9 to $339.4 million or by 7.8 percent. Businesses and individuals do not borrow unless they intend to spend those dollars which creates economic activity. Both sets of figures indicate a healthy amount of activity has taken place since last year.