Central Wisconsin Economic Research Bureau
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Division of Business and Economics
University of Wisconsin-Stevens Point
Stevens Point, WI 54481
(715) 346-3774  (715) 346-2537
 
 
Paul D. Warner, Ph.D. 
 
Director, Central Wisconsin Economic Research Bureau
 

Outlook
2nd Quarter 1985

 

     It is very rare for the national economy to experience virtually no growth for an extended period. The nature of market forces cause economic activity to either expand or contract. These pressures, of course, result in the business cycle. However, the U.S. has just completed a year of minimal growth without recession. It is unlikely that this trend will continue. Most economists feel that the economy will either begin expanding at a more rapid pace or slide into recession. Currently, the odds favor the former development. The reasons behind this expectation are falling interest rates, the declining dollar and a recently completed period of business inventory liquidation.

     The central Wisconsin region is also likely to grow more rapidly in the months ahead. The region sustained some shocks during the first half of 1985 which brought the economy to a virtual standstill. However, signs of a pick up are clearly evident in the leading regional indicators. Gains in residential construction and bank deposits across central Wisconsin pro­vide evidence of a more rapid pace in the future. Further support for this conclusion can be found in the Wausau area statistics. Marathon County, which tends to reflect changing national conditions before its southern neighbors, began reporting durable goods manufac­turing payroll gains for the first time in over a year. All of these factors point to an improv­ing economic performance in the months ahead.

 

 
 
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University of Wisconsin-Stevens Point
Division of Business and Economics
Stevens Point, Wisconsin 54481