The national economy remains in a sluggish mode. Real gross domestic product, the most basic measure of an economy's health, expanded by a scant at a 1.4 annual rate during 2nd quarter 1992. Further, the nation's factories increased their output by only 0.8 percent over the past twelve months. Interest rates, proxied by the three month U.S. treasury bill, continue to tumble downward. At the time of this report the rate on short term U.S. debt stood at 3.67 percent. Lastly, inflation remained suppressed at 3.1 percent, indicating that slack exists in the economy. 

     Unemployment rates in the area are hovering in the 5 to 6 percent range. Specifically Marathon posted a rate of just 5.1 percent during June 1992. Portage and Wood counties came it at 6.1 and 6.2 percent for the same time period. The Wisconsin unemployment rate was 5.2 percent for the period which was well below the national rate of 7.8 percent. 

     Employment in the region continues to expand. Nearly 140 thousand people are now employed in the three county area of Central Wisconsin. This represents an increase o approximately 6.4 thousand or 4.8 percent from a year ago. Wisconsin payrolls expanded to a similar degree over the course of the year. The state experienced expansion of approximately 4! percent. In contrast employment generation at the national remains at a virtual standstill. 

     In closer detail, employment growth in Central Wisconsin came in the classifications o1 manufacturing, services, and government. Trade and construction were slightly off last year'. employment pace. As a matter of record there are approximately 127 thousand people engaged v these types of industries in Central Wisconsin. When contrasted with last year employment growth has been in the neighborhood of 2.6 percent or about 3200 positions. 

     Key employers in our area include the paper products, lumber and wood products, foot processing, and finance, insurance and real estate industries. These firms bring in new dollars into the local region and serve as a catalyst for the entire economy. Employment in these important sectors expanded by 700 positions or 2.3 percent from 2nd quarter 1991. The biggest gain camp from lumber and wood products, they posted a 500 increase in payrolls. 

     Business confidence in our area remains upbeat even in spite of the negative news co out each day concerning the health of the national economy. When this group of regional business leaders was asked about recent economic changes, they said that the national and I conditions had improved since last year. Further, when it came to forecasting future condition this group says that the national, local, and industry situations will strengthen in the quarter ahead. 

     Even though the national economy appears to be sputtering, the Marshfield area turn in a fine performance during second quarter 1992. Almost every statistic in this quarter's re was better than last year's. Probably the most important development in the local area was increase in the various employment figures and activity in the residential construction sector.