The national economy continues to show signs that it is slipping into a recession. Employment numbers in many key sectors such as manufacturing are slipping while the national unemployment rate is rising. Industrial production however continues to expand at a modest rate. Interest rates, as proxied by the three month treasury bill, have declined from last year, but inflation is becoming a serious concern with the CPI rising by nearly 6.2 percent from last year. Energy prices have clearly played a major role in this development.
 

     Unemployment rates in the three Central Wisconsin counties have resumed their downward trend and have now reached the 3.0 percent level. This is in sharp contrast to the situation at the national and state levels where rates have increased. In many regards this area and the state have fared better than many other sections of the country. Only time will determine how severe the downturn will be, and if and when national factors will penetrate our local economy.
 

     Total employment in the Central Wisconsin region was sluggish at best. Only 600 net jobs were added to the region's payrolls. Portage and Wood Counties actually lost jobs to the tune of 400 and 100 respectively. Marathon County was the lone bright spot gaining 1100 positions since third quarter 1989. But one should remember that due to extensive commuting within the three county area, it may be more meaningful to examine the net gain figure for the region as a whole.
 

     The Central Wisconsin region experienced better luck with the nonfarm sectors. Manufacturing, services, and trade employment were all improved from last year. For the region, 4700 more people are working than last year at this time, a gain of approximately 4.2 percent. Once again, this result shows more strength here than is being exhibited at the national level. Will this good fortune continue, or as in the past, will the difficulties experienced elsewhere in the country eventually influence our local situation? History is on the side of the latter assertion.
 

     Key Central Wisconsin industries, along with agriculture, basically support all other types of activity in our region. Therefore, it behooves the analyst or interested party to keep a close watch on this group of industries. For third quarter 1990 the overall increase in these sectors amounts to 500 positions or a 1.8 percent rate of growth. In particular, all of the growth was centered in the paper products industry and lumber and wood products. Some softness was evident in the food processing and the finance, insurance, and real estate sectors.
 

     Regional business persons expressed a loss of confidence when asked about the national and local economies. The results, when considered in their entirety, were as gloomy as any ever recorded at the CWERB.
 

     Marshfield's third quarter economic results were very positive in light of the problems being experienced in other parts of the country, Michigan and Massachusetts for example. The unemployment rate continues to be very low and employment data for Marshfield is also quite positive. Other indicators of local and regional economic performance, such as residential construction, also support an upbeat view of recent local economic performance.