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It is very rare for the national economy
to experience virtually no growth for an extended period. The nature of market
forces cause economic activity to either expand or contract. These pressures, of
course, result in the business cycle. However, the U.S. has just
completed a year of minimal growth without recession. It is unlikely that this
trend will continue. Most economists feel that the economy will either begin
expanding at a more rapid pace or slide into recession. Currently, the odds
favor the former development. The reasons behind this expectation are falling
interest rates, the declining dollar and a recently completed period of business
inventory liquidation.
The central Wisconsin region is also likely to grow more rapidly in
the months ahead. The region sustained some shocks during the first half of 1985
which brought the economy to a virtual standstill. However, signs of a pick up
are clearly evident in the leading regional indicators. Gains in residential
construction and bank deposits across central Wisconsin provide evidence of a more rapid
pace in the future. Further support for this conclusion can be found in the Wausau area statistics. Marathon County, which tends to reflect changing
national conditions before its southern neighbors, began reporting durable goods
manufacturing payroll gains for the first time in over a year. All of these
factors point to an improving economic performance in the months ahead.
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