The Stevens Point area economy continued to grow
during 2nd quarter 1989. Total employment grew to 32.9 thousand, an increase
of nearly 4.5 percent. Further, the relatively high-paying manufacturing
sector added nearly 200 jobs during the last year. Much strength was evident
in nearly all indicators of past and future performance. One of the more
exceptional pieces of information comes from the nonresidential construction
scene. Building activity of this type was at record levels due principally
to a major expansion at Consolidated Papers.
Portage
County is
the number one producer of vegetables in the state. Thus a rebound in the
agricultural sector from the drought of last year would provide a major
boost to the local economy. As of press time, early summer rains seem to
have assured a substantial improvement in local farm sector conditions.
Table 7 presents the nonfarm employment situation by
major sector. Manufacturing posted a 200 position gain, up 4.0 percent from
a year ago. Manufacturing employment stands at an all-time high for second
quarter.
Nonresidential construction has stimulated a 15 percent increase in
construction employment, and government payrolls expanded by nearly 200
positions. Trade employment showed an unexpectedly large decline over June
of 1988. However, these figures will most probably be subject to
reevaluation by the Wisconsin Department of Labor and Human Relations.
Finally, service sector employment was virtually unchanged from a year ago.
Retail trade conditions are gauged by a survey of local merchants. (Table
8) The CWERB poll indicates that total sales and store traffic were
somewhat better than the previous year at this time. With regard to future
sales and store traffic matters should be moderately better in the quarter
ahead. Retail activity is an important indicator of economic vitality
because changes in this sector reflect the overall health of an economy.
The help wanted advertising index (Table 9) is a
measure of labor market conditions. The index shows that nearly three jobs
are being advertised in the local newspaper in 1989 for everyone job
advertised in 1980. From a year ago, the index has increased by nearly 40
percent and now stands at a record level for this time of year. Thus, it can
be concluded that local payrolls should continue to grow. The purpose of
this newspaper-based index is not to count all new jobs being offered in a
community, but rather to capture the overall trend.
Tables 10 and 11 measure local family financial
distress. New public assistance claims in the county rose by 7.2 percent
from a monthly average of 97 claims to 104 claims. Monthly average total
caseload fell nearly 19 percent from 1726 to 1401 cases over the past year.
With regard to new and total unemployment claims, matters were virtually
unchanged from a year ago. Thus, a small percentage of the population
continues to experience difficulty even during this period of increasing
prosperity.
After several years of exceptional growth and expansion, local residential
construction activity has slowed. (Table 12) Permits
issued, the estimated value of new homes, the number of housing units, and
the estimated value of residential alterations were all sharply lower than a
year ago. This is the second consecutive quarter of contraction in this
sector. The satiation of pent-up housing demand over the past several years
and escalating prices have played important roles in the slackening of
residential construction.
In contrast, nonresidential construction activity was very strong.
Table 13 shows that nearly every category is much
above last year's levels. From a historical perspective, the number of
permits, estimated value of new structures, and the number of business
alteration permits issued reached record highs, regardless of the time of
year. The decision to build or expand a business is primarily a function of
expected profitability; therefore, these decisions can the considered an
expression of optimism about the future.
Table 14 presents local financial data. Bank deposits
jumped by nearly $25 million or 9 percent. Lending activity was even
stronger as evidenced by a $35.6 million increase in outstanding loans for a
gain of 19.1 percent. The statistics may be biased upwards due to monies
being temporarily transferred from one institution and/or region to another.
Thus, caution should be exercised when interpreting the numbers.
