The national economy continues to plod along. Real GDP grew by about 1.9 percent from third quarter 1991 and industrial production was running only 8.6 percent higher than long ago in 1987. Over the course of the year the nation's factories expanded output by a sin 02 percent. Interest rates fell from 5.11 to 2.73 percent on U.S. treasury bills. This reflects the demand‑side weakness for goods and services in the economy. The consumer price index was up by a surprising 3.0 percent when measured from September 1991 to September 1992, with food prices being one of the major causes of this development. 

     Unemployment rates in the area rose sharply because of large unexpected and unexplained increases in the area's labor force. Portage, Marathon, and Wood County unemployment rates were 8.6, 65, and 9.9 percent respectively. Collectively, the Central Wisconsin unemployment rate rose to 8.0 from 4.5 percent last year at this time. 

     Total employment expanded in all three counties, but not enough to counteract the fast rising labor force. Total employment in the area increased by 2.5 percent and nor stands at 136.1 thousand. Individually, Portage, Marathon, and Wood County payrolls went up by 3.9, 1.5, and 2.9 percent respectively. 

     Industrial sector employment growth ' was led by manufacturing. Manufacturing employment expanded by a healthy 4.6 percent, services by a much smaller 0.7 percent, and government by a mere 0.6 percent. Overall, the industrial sectors expanded 0.7 percent from third quarter last year. 

     Key industries in our area did somewhat better in comparison to third quarter 1991. These industries expanded by 23 percent which bodes well for the rest of the regional economy. Lumber and wood products employment rose the most dramatically of the group with an increase of 11.1 percent. Food processing also did well, growing by approximately 4.7 percent or 300 positions. 

     Business confidence remains in the mildly optimistic range. The majority of the regional business leaders on our panel believes that the national economy is likely to improve in future quarters. With regard to the local outlook, they are about as optimistic about regional prospects as they are about prospects for growth in their respective industries. 

     In spite of a sharply rising unemployment rate, caused by an unexplained surge in the labor force, employment in the area rose from third quarter 1991. The local area economy appears to be stable and most measures of economic performance were positive. The proposed expansion of the clinic should, once again, provide a boost to the economy of the area.