The terrorist attack on September 11, 2001 has had a significant impact on the level of business confidence in Central Wisconsin.  The business confidence index in the report clearly shows this drop in optimism.  However, other sections of the report indicate that the economic slowdown, which preceded the terrorist acts, was already affecting the local economy.

     Seasonally unadjusted unemployment rates in Portage County and the state of Wisconsin rose from the levels of twelve months ago (Table 2).  The unemployment rate in Portage County climbed from 2.6 percent to 2.7 percent, and the state mark increased from 3.1 to 3.4 percent.  Similarly the national unemployment rate moved higher growing from 3.8 percent to 4.7 percent.  Surprisingly the unemployment rates are tentatively estimated to be lower in Marathon and Wood Counties as compared to a year ago.  In Marathon County the rate has decreased from 2.9 percent to 2.6 percent, and has also dropped from 3.6 percent to 3.0 percent in Wood County.

     The total employment figures are given in Table 3. The total employment figures in Portage County, and the nation are estimated to have declined by 1.4 percent and by 0.1 percent, respectively.  Marathon County employment is reported to be unchanged from last year and Wood is estimated to have increased by 1.8 percent.  Overall Central Wisconsin total employment is estimated to have increased by 0.1 percent.

     As discussed in previous quarterly reports the manufacturing sector has been hit hard by the national economic slowdown.  Even before the events of September 11, 2001 this sector was facing overcapacity problems.  Manufacturing is estimated to have contracted by 2.4 percent in Central Wisconsin from twelve months ago. Trade and government payrolls are also lower than a year ago by 0.6 percent and 1.1 percent, respectively.  Meanwhile, the services sector in Central Wisconsin expanded by a robust 3.0 percent and construction likewise added 4.5 percent to its payrolls.  Thus, the industrial sector employment numbers give us a mixed economic picture for the area (Table 4).

     Sales tax data for Portage and Marathon Counties are presented in Table 5.  For Portage County sales tax collections are estimated to have risen from $1.09 million to $1.13 million or by 4.0 percent from last year.  Marathon County experienced a substantial increase in sales tax collection.  For Third Quarter the amount rose from $2.34 million to $2.59 million.  This represents an annual gain of 10.5 percent.

     Figure 5A and Figure 5B show some interesting trends in the regional economy. The services sector employment level has increased from about 47 thousand to almost 54 thousand over the past 4.75 years. Meanwhile, trade employment has risen from about 31 thousand to 35 thousand over the same period and is likely to surpass manufacturing in the near future as the second largest source of employment for residents of Central Wisconsin. Meanwhile, manufacturing employment has risen ever so slightly over the period from about 34 to 35 thousand people. Similarly government and construction employment levels have remained flat over the period, 18 thousand and 6 thousand, respectively.

     The business confidence index in Table 6 presents the views of the area's business leaders on the economy.  Recent economic changes at the national and local levels were deemed to have deteriorated or to have stayed about the same.  The largest change in the survey was in the September 2001 assessment of future economic activity.  The results for the most part are post September 11th and reflect the impact of the terrorist attack.  Expected changes in the economy at the national, local, and industry levels showed significant drops in confidence on the part of these groups.  This was especially true for the national economy where the confidence level fell by 22 points. 

Unemployment Rate
September 2000