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The national economy expanded by a healthy 3.7 percent from a year ago (see
Table I). However, during the last three months the economy has been growing at
an annual rate of 2.2 percent, somewhat slower than anticipated. Industrial
production and factory utilization rates increased steadily over the course of
the year coinciding with a continuation of the country's record economic
expansion. Interest rates have been creeping upward during the year which
reflects a general tightening of credit conditions and rising price levels.
Inflation, while still under control, looms as a potential problem for the U.S.
Unemployment rates have declined dramatically in Portage
and Marathon counties, and improved in
Wood
County since third quarter
1987. Likewise, the state and nation have benefited from a downward trend in
this measure of economic success. Unemployment rates for all reporting areas now
stand at the lowest levels since the early 1970s. Total employment for the
region, state, and nation have set all-time records.
Nonfarm employment in Central Wisconsin continued to expand during the year.
Jobs in the service and trade sector posted the largest gains. For the first
time in 1988 manufacturing was not the driving force behind regional employment
growth. This development will be closely monitored in future quarters.
Employment in key Central Wisconsin industries was down by 0.3 percent or
100 jobs. The major areas of concern were food processing and finance,
insurance, and real estate. Food processing, for instance, declined by 300
positions or 6.1 percent from third quarter 1987. The summer drought was a major
contributor to this phenomenon. However, the paper, lumber and wood products
industries continued to expand due to favorable market conditions.
Regional business leaders indicate that recent changes in national and local
economic conditions have been generally positive. However, the group voiced
reservations about the economic future of the country. This attitude also is
reflected in national polls.
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