The national economy grew at a rather robust clip during the past twelve months. Real Gross National Product rocketed upward by 5 percent. Refer to Table 1 for U.S. statistics. Factory output reflected the surge in activity as industrial production rose by 5.8 percent. However, the 68-month-old expansion is showing signs of inflationary pressures. The Treasury bill rate moved from 5.82 percent to 6.59 percent over the past year. Furthermore, inflation as measured by the Consumer Price Index crept upwards at a 4 percent rate between second quarter 1987 and second quarter 1988. The Federal Reserve Board Chairman has threatened to tighten money and credit growth, thereby driving up interest rates in an attempt to cool down the economy.

     Unemployment rates at the county, regional, state, and national levels were substantially below last June's averages. The great improvement in these numbers was welcome news for our area. Central Wisconsin's unemployment rate of 4.6 percent stands well below the national mark of 5.5 percent. Thus the decade long decline in this measure continues.

     Employment growth in the region was healthy. However, job creation was uneven among the three counties. Three thousand eight hundred new jobs were added during the past year. Marathon County accounted for 84 percent of these positions. Nonetheless, each of the three Central Wisconsin counties registered decade high levels of employment. The rate of payroll expansion in Central Wisconsin exceeded the national figure. Corresponding to developments at the national level, manufacturing showed the most vigor. The decline of the dollar over the past several years has been a great stimulus for this sector. Central Wisconsin's nonfarm employment increased by a very respectable 3,400 jobs or 3.2 percent. All major sectors in the region reported gains over last year.

     Key sector employment added approximately 900 new jobs during the year. The paper products industry accounted for 500 of these positions. Food processing and Finance, Insurance and Real Estate employment also expanded. Only lumber and wood products showed no change from last year. In summary, solid growth in these vitally important industries demonstrates the fundamental soundness of the regional economy.

     Area business executives expect local economic conditions and conditions in th~r particular industries to remain about the same during the next six months. These individuals are generally somewhat less optimistic than last quarter. However, they did feel that the local and national scene had improved over the past three months.

     The Stevens Point-Portage County area experienced little job growth during the past year. A slow down in the expansion was forecast earlier in the year. There are, however, some positive developments, such as a lower unemployment rate, and vigorous growth in residential construction. Furthermore, several planned business expansions should give the local economy a boost.

     Finally, the national economy should continue to grow at a moderate pace in the foreseeable future, which will have a positive impact on the Stevens Point area.