This section of the report focuses on the Stevens Point area economy. Tables 7-13 provide local information on labor markets, governmental assistance to individuals, con­struction activity and financial institutions.

     Table 7 is based on employment change by sector for Portage County. These data indicate a strong local economic expansion. All sectors, with the exception of government, show solid growth. The two most cyclically sensitive sectors-manufacturing and construc­tion-have led the way with dramatic percentage gains. The total number of jobs added in construction is relatively small. Gains in manufacturing employment have been paced by the paper, lumber and furniture industries.

     As significant as the manufacturing and construction sector gains have been in Portage County, the most encouraging conclusion drawn from Table 7 is that the local expansion is broad based. In contrast to the first quarter report, respectable increases in the service and trade sectors are evident. Moreover, these sectors are relatively large, therefore comparatively small percentage increases translated into 660 new jobs. The trade sector has finally turned the corner, adding 400 jobs in the second quarter, primarily because of the opening of the Factory Outlet Mall in Plover.

      The only blemish in the otherwise positive scenario revealed by Table 7 is the decline in government employment. Although the drop is sizable, it is entirely due to the reporting methods of the University of Wisconsin-Stevens Point. The university reports all full-time and part-time employees (including students). The June 1984 data was gathered when UW-SP was between spring and summer sessions. Adjusting for this one time decrease in the state government payroll, total private sector employment in Portage County is up a very strong 9.0% over last June. A payroll increase of this magnitude is surprising in light of recent major layoffs, although the American Potato Division cutback has not yet shown up in the numbers.

     Table 8 indicates that help wanted advertising in the Stevens Point area is appreciably higher than the June 1983 figure. This reflects a sizable jump in labor demand. A technical note regarding the help wanted index is in order here. The index is partially seasonally adjusted by setting June 1980 equal to 100. June was the beginning of the short but sharp 1980 recession. Therefore, it is not surprising that the index for 1983 and 1984 both register above 100. The important conclusion to be drawn from Table 8 is the large jump in advertising from June 1983 to June 1984.

      The need for general public assistance in Stevens Point is down 43% over the year earlier level (Table 9). This indicator tends to lag the overall economy. However, initial unemployment claims tend to lead economic activity and they are well above the second quarter 1983 level (Table 10). Initial unemployment claims are also 12.6% above the first quarter reading. This trend must be watched closely in coming quarters.

      Construction figures for the Stevens Point-Plover area once again are positive. Table 11 provides evidence of strength in residential construction. The estimated value of new homes, number of housing units and residential alteration activity are well above the second three months of 1983. However, the gains are far less (in percentage terms) than in the previous quarter and the number of residential permits is down slightly. Nevertheless, residential construction, both nationally and locally, has shown remarkable resilience to high real interest rates.

      Nonresidential construction added considerable strength to the local expansion in the second three months of this year (Table 12). The large jump in the value of new struc­tures can be attributed to permits issued to First Financial Savings and Loan Association, Wisconsin Bell and Journal Printing.

     Table 13 shows that bank deposits and loans are up smartly over last year. However, almost all of this gain occurred in the second half of 1983. Deposits have been basically flat since January. A continuation of this trend suggests a future slowdown in the area economy.