The Central Wisconsin economy has expanded rapidly over the past year. The rate of growth accelerated during the first quarter of 1984. It is unlikely that the rate of job creation over the past year will be maintained in the coming months, particularly in Wood and Marathon counties. However, an expanding national economy (though at a slower pace) and seasonal factors should provide enough impetus to keep the expansion going. Moreover, labor force growth appears to have subsided over the last three months, thus making reduc­tions in the unemployment rate more attainable.

     As always, questions about the region's future economic performance remain. These questions include:

1. Will rising interest rates stifle the residential construction boom? There is some evidence that the pace of construction activity has slowed in the Stevens Point­-Plover area, though it is too early to pinpoint a pattern. More importantly, a drop in construction nationally would impede the lumber and wood products expansion. This industry has been an extremely potent regional job generator over the past year.

2. Has the paper industry reached capacity? Nationally, paper has a higher capacity index reading than any other industry. If regional paper producers have reached their short run potential, further employment gains are unlikely.

3. How will the Portage County economy weather another major plant closure? The shutdown of the Preway Corporation branch plant in Stevens Point will idle 50 workers in the fabricated metal products industry. The loss of an "export" oriented firm will put a further damper on the county's economic expansion.