As has been the case throughout the economic expansion, the Wisconsin Rapids area experienced a growth rate between that recorded by the Stevens Point area and the Wausau area economies. As a result, the Wisconsin Rapids growth rate was similar to the moderate pace of the region as a whole during the third quarter. This section of the report focuses on data specific to the Wisconsin Rapids area. Information on local labor markets, construction activity and financial markets is contained in Tables 7-13.

     Manufacturing employment in Wood County remains unchanged from June but stands 3.0% below the September 1984 figure (Table 7). However, a large proportion of this decline is the result of weakness in the lumber and wood products industry, an industry with limited employment in the Wisconsin Rapids area. Government employment in the county also slipped because seasonal gains have yet to show up in the data.

     For the second consecutive quarter, trade employment showed solid gains on a year-to­year basis. Employment in this sector is up modestly from the June figure. The large service sector also expanded payrolls over last year. On a percentage basis, the volatile construction sector recorded the most impressive gains (21.2%). Increased residential and nonresidential construction activity pushed payrolls up by 220 over last September. The Wisconsin Rapids employment index, which adjusts for structural differences between the Wisconsin Rapids local economy and Wood County as a whole, showed an increase of 2.7%. These figures indicate that moderate growth continued in the local economy during the third quarter.

     The volume of help wanted advertising plunged well below the year earlier level (Table 8). The index now stands at 97.4 compared to a reading of 138.9 a year ago, a time when the local economy was expanding at a faster clip. The 1985 figure is very similar to the 1980 base year level.

      Continuing a pattern established in the second quarter, open cases for public assistance dropped below the year earlier level (Table 9). However, initial applications jumped 13.2% over last year and are 42.5% above the second quarter level. This number is relatively small and typically shows large percentage swings but increases of this magnitude will surely translate into more open cases in the quarters ahead.

     New unemployment claims and total unemployment claims processed at the Wisconsin Rapids district office each rose significantly above the year earlier level (Table 10). How­ever, both figures declined from their respective second quarter totals. This mixed perfor­mance is typical of an aging economic expansion.

     Lower interest rates triggered a pick up in residential construction during the summer months (Table 11). Local housing starts shot up 56% over a year ago, while the estimated value of new homes climbed 28.2%. The reason for the discrepency in the two increases is a drop in multi-family unit construction compared to the summer of 1984. Residential altera­tions also could not match the pace of a year ago.

      Nonresidential construction activity added a large dose of stimulus to the local economy (Table 12). Permits were filed during the quarter for new structures with an 'estimated value of $3.8 million. The key reason for this surge was a Consolidated Papers Incorporated mill expansion permit. This project will carry multiplier effects throughout the local economy.

     Bank deposits and bank loans each posted increases over a year ago (Table 13), However, deposits continued to rise at a faster pace (8.8%). This increase in bank liquidity is likely to translate into stepped up loan activity in the months ahead.