The national economy has expanded for over seven consecutive years. This record peace‑time expansion continued, albeit barely, during 4th quarter 1989. For the past year the national economy grew at an inflation adjusted rate of 2.4 percent, (Table 1). However, during the last several months, data suggest that the national economy grew by only 0.5 percent. To further underscore this point, the industrial production index rose by a scant 1.7 percent. Moreover, interest rates from December 1988 have been trending downward and inflation came in at 4.6 percent for the past year. The major components contributing to the higher than expected price rise have been energy and food. 

     The unemployment rate rose in Portage, Wood, and Marathon counties. The combined overall rate for Central Wisconsin was up by 1.4 percent. The state also experienced an increase in its unemployment rate. However, the reported percentages are still low for the area as measured by historic standards. Employment growth in the counties was difficult to come by. Only Marathon experienced a slight gain by adding 1.4 percent to its payrolls. Central Wisconsin did better than the state by posting a very modest 0.4 percent increase while the latter experienced nearly a 2 percent decline in employment. Even though the increase for Central Wisconsin was slight, it was enough to allow for a record level of 4th quarter employment. 

     The regional industrial sectors added 3,300 people to their payrolls. This represents an increase of approximately 3.0 percent No sector experienced a decrease, with several establishing record levels of employment for 4th quarter. High‑paying manufacturing registered a gain of 700 positions or 2.5 percent, but the burgeoning service sector was the most active adding 1300 to its employment.

     The Marshfield‑Wood County economy experienced a decrease in the level of total employment. Further, the unemployment rate was much above last year's levels. These plus other indicators point toward a slowing in the area economy. This parallels what took place during 4th quarter at the national level. Early indications are that the country may get through this upcoming period without sinking into recession.