Real gross domestic product (GDP) expanded by a microscopic 0.2 percent in fourth quarter 1991, Table 1. The national economy, while statistically expanding, is clearly going nowhere in terms of income and employment generation. Industrial production, which measures the output activity of the nation's factories grew by a minuscule 0.6 percent. With the economy languishing away, the demand for financial capital has plunged and with many financial institutions unwilling to lend, interest rates have dropped to levels not seen since the early sixties. Finally, the relatively inactive economy has caused the inflation rate to slow to approximately 3 percent.

     Unemployment rates in the area continue to be low from a historic standpoint. All three counties have unemployment rates which would be the envy of many places in the country. Further while the U.S. rate is now pushing the 7 percent barrier, Central Wisconsin's labor force weighted unemployment rate is only 5.1 percent.
 

     Employment growth in the region is a bright spot for the people of Central Wisconsin. Portage and Marathon Counties both added people to their payrolls by 2500 and 500 respectively from December 1990. Only Wood County experienced a contraction in the number of people employed. In contrast the employment levels for Wisconsin and the nation contracted. In sum there are now approximately 131,000 people employed in the region.
 

     With regard to industrial sector employment, Central Wisconsin appears to be doing quite well. Every sector except for trade expanded at a reasonably decent rate. Employment in the reported industrial sectors expanded from 120.7 to 122.9 thousand, a gain of 2200 jobs. The fastest growing sector over the past twelve months was the service sector. Expansion in that area was, however, offset by the large decline in trade. Trade reportedly fell by 3400 jobs from last year.
 

     Key Central Wisconsin industries comprise nearly 24 percent of total nonfarm employment. Each sector, except for lumber and wood products, registered a healthy increase. The slowdown in national construction activity played a major role in this outcome. Food processing led the growth by posting a gain of 1200 jobs or 24.5 percent. In sum, the number of people employed in our key industries rose from 27.4 to 29.1 thousand, approximately a 6.2 percent expansion since 1990.
 

     Results of the business confidence survey indicate that business leaders perceive that the national and local economies have weakened. However, they expect both to strengthen in the quarters ahead. And it is particularly encouraging to note that these individuals expect their own industries to gain momentum later this year.
 

     The economy in the Marshfield‑Wood County area has made impressive strides in the past five years. However, the current situation nationally is unsettled. The national economic slowdown is clearly being felt in the Wood County area. The sooner the national economy turns upward in a meaningful way, the better for our community and region.