The short term outlook for the national economy has improved over the past three months. Although interest rate declines appear to have temporarily ceased they are now low enough to generate additional residential construction and business capital expenditures. Lower oil prices and a strong stock market also brighten the short term outlook. Still un­resolved is the economic impact of the recently passed Gramm-Rudman balanced budget legislation.

     The Central Wisconsin economy also appears poised for a stronger performance. Rising business confidence, stronger bank loan demand and continued regional retail expansion point to some improvement over a lackluster fourth quarter. As always dark spots remain. Setbacks at Wausau's J. I. Case plant will offset some of the expected gains.