The most basic measure of economic activity is real GDP which measures the country's output of goods and services. Real GDP grew by only 1.8 percent since First Quarter 1995. Industrial production increased by a scant 1.3 percent indicating that our nation's factories are producing slightly more than a year ago. Compared to 1995 short‑term interest rates are significantly lower this year than last. This of course is in contrast to the rise in long‑term rates. The latter are much more sensitive to inflationary expectations of investors. However, the inflation tiger still remained in its cage, rising by only 2.8 percent. 

     Unemployment rates decreased by 0.1 of a point in Portage and Marathon counties, and for the United States. The rates exhibited by these areas along with that of the state of Wisconsin are very low when considering the time of year. An unemployment rate of under six percent is usually considered to indicate full employment. In other words one would expect some frictional and structural unemployment in a dynamic economy. Without these kinds of unemployment we would live in a stagnant world. 

     Total employment in the region expanded by 2.9 percent. Marathon grew the most posting a 3.8 percent increase, and Wood county employment also did well rising by 2.7 percent. Portage county was off the pace somewhat with its payrolls growing by only 1.2 percent over the past year. This mark was below that of the nation which posted a 1.8 percent rate of change. 

     Industrial sector employment saw manufacturing in the region climb by 1.5 percent. Services expanded the most over the course of the year, rising by 3.2 percent. Government payrolls were up slightly, 1.6 percent and now stand at 18.7 thousand people. Trade employment growth is estimated to be almost nonexistent and the number of construction related jobs fell by 2.4 percent. 

     Sales tax data for Portage county climbed from $716.7 to $775.8 thousand since last year, or a healthy 8.2 percent. In contrast, Marathon county activity was only slightly higher over the period rising from $1.62 to $1.64 million. 

     Business leaders were very concerned with recent economic changes at the national and local levels. The figures of 40 and 47 respectively are quite low for this panel. This suggests that they saw a deterioration in economic conditions. However, they also say that conditions should improve with better weather, a budget accord taking place in Washington, etc. 

     Marshfield area economic performance was improved in the areas of total employment and the unemployment rate. However, some weakness was evident in other economic indicators. For example unemployment claim data and residential construction activity were much below last year's totals. Furthermore, the help wanted advertising index tumbled from the mark established in 1995.