The national economy will continue to expand during the remainder of 1987. Support for this supposition is based on increases in orders for new plant and equipment, new business formations, vendor performance - slower deliveries, industrial raw material prices, and the average work week. Moreover, the economy will be driven by rising consumer expenditures and increased export activities.

     The fear of a substantial sustained increase in inflation has waned. The prospect of runaway inflation and the resultant possibility of a recession were major concerns during the first quarter of the year. However this severe inflation failed to materialize due to the influx of foreign capital, decreasing monetary growth, restrained wage increases, excess industrial capacity and the fact that the dollar has stabilized in the international market place.

     The state and the region should continue to see an expansion in economic activity. Besides the favorable national factors, the driving force behind this continued growth is that economic prospects and markets for many of our regional industries remain essentially positive. Therefore, local employment and income will continue their upward paths. Thus, after many years of struggle the region appears to have recovered from the difficulties of the past.