The government worker layoffs in Washington and the great blizzard of 1998 caused a substantial delay in the collection of most economic data. Fortunately the data became available before this report went to print The much anticipated GDP figures show the national economy slowed to a crawl dung Fourth Quarter. Real GDP grew by just 1.4 percent over the year. In addition the industrial production of our nation's factories moved upwards by only 1.2 percent. 

     The three‑month treasury bill rate continues to plunge downward in the credit markets. Further, inflation continues to abate climbing by only 2.5 percent over the preceding twelve months. 

     Regional unemployment rates declined by a significant degree since last year. The Central Wisconsin labor force weighted rate of 3.7 percent is very low from a historical perspective. Also, the state unemployment rate continues to be well below the nation mark, 3.2 percent versus 5.2 percent. 

     Employment in Central Wisconsin expanded by 1.8 percent or 2,500 positions from Fourth Quarter 1994. Specifically, Marathon county expanded by a respectable 2.2 and Wood county by an even stronger 3.1 percent. In contrast, Portage county payrolls are estimated to be about 0.3 percent lower over the same time period. Wisconsin added jobs at the rate of 2.4 percent during the period compared to 0.3 for the nation. 

     Central Wisconsin's industrial sectors grow by 2,800 jobs from a year ago. Manufacturing, services, trade, and government increased by 3.2, 2.4, 1.5, and 0.8 percent respectively. Only construction failed to keep pace, declining by 2.2 percent. The modest but respectable growth during Fourth Quarter 1995 suggest that economic matters remain on the right track in our area. 

     The information in Table 5A and 5B suggests that our economy has experienced much growth since 1990. However, most of the growth has taken place in the services and trade sectors. On the other extreme construction and government employment has changed relatively Oft over the same period.

     Business confidence was generally lower among our business executives panel. In all five categories of confidence the response level for this quarter was lower than that recorded in the previous quarter. Clearly, news stories concerning the budget impasse, and the slowing national economy have had an Influence on their perception of the world and of their business. 

     Wood county and the Marshfield area experienced solid economic growth over the past twelve months. Almost all important measures of performance were higher than last years mark. Of particular Interest was the dramatic drop in the unemployment rate and the increases registered in most categories of employment. Clearly the diversified nature of our economy is a major contributor to this situation.