During the past twelve months the national economy grew by a healthy 3.6 percent. Moreover, the nation's factories increased their output by nearly 4 percent. These numbers strongly suggest the economy is on a solid foundation. Short‑term interest rates remain virtually unchanged over the period, rising by only 2 basis points. Even with good economic growth taking place inflation remains abated, rising by only 2.3 percent. 

     The unemployment rates throughout the region continue to be at near historic low levels. The overall rate for the region stands at just 4.1 percent. Even lower yet is the state mark of 3.8 percent. Moreover, Wisconsin has one of the lowest unemployment figures in the country. The U.S. as a whole came in with a 5.2 percent rate. Further, the national unemployment rate continues to.spiral downward as the economy grows. 

     Employment growth rates at the state and regional level for many years have exceeded that of the nation. However, after many years of expansion, labor markets throughout the state are tight for skilled workers. Thus, employment growth in the state and region will necessarily slow unless there is some unforeseen in‑migration into the state. Most analysts now see the nation's payrolls growing at a faster clip than the state. In essence the nation is going through a phase already experienced by Wisconsin. 

     Industrial sector employment in the region is of course facing the same set of conditions as alluded to earlier. Industrial sector growth amounted to 1.6 percent over the year. Manufacturing, services, and trade managed to add 600, 1,100, and 1,600 positions respectively. However, contractions of 200 and 900 were experienced in the construction and government sectors. 

     Tax collection data for the counties of the region who levy a local sales tax increased nicely over the period. Persons and institutions In Portage county went on a spending spree with tax collections rising from $739.4 to $893.1 thousand over the year. Marathon county activity rose from $1.5 to $1.6 million over the same period. Retail sales is an important gauge of how much economic activity is taking place in the local area. Sales normally increase when people are reasonably confident about their jobs and income security. 

     Regional business leaders are much more upbeat about recent changes at the national and local level than last quarter. The readings in the low 60's are significantly different from those of the upper 40's registered during the First Quarter. The decision to make no change in interest rate policy by the Federal Reserve and the subsequent relative stability exhibited by the stock market played a major role in the rebound of the confidence index. This group also believes that the economy will remain stable in the quarter ahead. 

     The Wausau area economic statistics were very positive. There is little doubt that the area economy is doing well. Even though an occasional set back occurs at a particular business, it is usually more than offset by the positive developments taking place elsewhere with other firms.