Slowed by local layoffs and weakness in the national economy, the Wausau area has completed a year of essentially no growth. However, there are emerging signs of an improve­ment in local conditions in the months ahead. This section of the report focuses on data specific to the Wausau area. Tables 7-14 contain information on local labor, retail, construc­tion and financial markets.

     Weakness in the local economy over the past year is reflected in the Marathon County employment statistics (Table 7). The trade sector, which had been the major source of job opportunities in recent quarters, showed virtually no change in payrolls when compared to last June. Nor can expanding employment be found in services, construction or govern­ment. The only major sector to report increased payrolls over June 1984 is manufacturing. An employment expansion in the manufacturing sector is very significant for the local economy. New jobs have been concentrated in durable goods industries, suggesting a revival of national demand for hard goods. Employment gains in the manufacturing sector generate an expansion of local demand, thus increasing payrolls in services and trade. The manufacturing gains reported so far have not been great but they are widespread and represent a change in direction'. Payrolls have risen in the machinery, fabricated metal and lumber industries.

     Retailers in the Wausau area observed a moderate increase in sales during the second quarter (Table 8). The retailer confidence index has hovered around the mild improve­ment level for several quarters. Expectations of future sales showed a slight decline from the March reading.

     The volume of help wanted advertising is up slightly over last June (Table 9). Labor demand appears to be improving in the area economy. This is suggestive of gradually improv­ing local employment conditions.

     The total caseload for public assistance claims processed at the Marathon County office in Wausau show almost no change from a year ago (Table 10). However, new applications fell sharply. A large drop in new applications will translate into a decline in the total caseload during the third quarter.

     The unemployment claim figures are mixed but not nearly as negative as the first quarter (Table 11). Total unemployment claims dropped an encouraging 9.4% initial unemployment claims are higher than a year ago but down sharply from the first quarter level. Once again the indicators are pointing to a gradual improvement in local conditions.

     Faint signs of improvement are beginning to appear in the local residential construction market (Table 12). The value of new home construction is up slightly and alteration activity is well above a year ago. However, lower interest rates have yet to trigger an increase in new permits in the area.

     Nonresidential construction is much less sensitive to interest rates than is residential construction (Table 13). Business construction activity is heavily dependent on the level of demand. With very little growth in local demand in recent months there has been less incentive for businesses to expand capital appropriations in the area.

      Financial statistics for Wausau provide confirmation for previous conclusions       (Table 14). Bank loans, a measure of current economic activity, rose only modestly. Bank deposits, a gage of future activity, rose sharply. Rising deposits suggests increased liquidity which usually results in greater future demand for goods and services.