State Follows National Trend
MADISON – Preliminary estimates of first quarter GDP came in at 1.3%. Growth will pick up later in the year, and total 2007 growth in GDP is projected to be 2.1%.
Wisconsin employment is expected to follow the trend in the national economy this year, growing 0.4%, but is expected to show healthier growth in 2008. In 2008, as the economy starts its recovery in the housing sector, gasoline prices ease, and manufacturing and exports maintain a healthy growth path, employment is expected to rebound showing a growth of 0.9%.
The Professional and Business Services, Education and Health Services, and Leisure and Hospitality sectors are expected to grow, on average, 2.6% 2.0% and 1.2% respectively for the next five years (2007-2011).
Wisconsin personal income rose 4.8% in 2006 and is expected to maintain steady growth, showing 4.9% growth rate in 2007 and 2008.
Revenue collections for the first 10 months of the fiscal year (through April, 2007) grew 6.2% over last year, led by an 8.2% increase in individual income tax collections.
Consumer spending is expected to slow as consumers cut back on other spending after filling up their tanks on record high-priced gas. However, as refineries return to higher operating capacity and extra imports arrive, gasoline prices are expected to drop in the third and fourth quarters.
The Outlook shows Wisconsin’s export sector continues to grow. Wisconsin’s exports increased 15% in 2006 to $17.2 billion after a growth rate of 17.4% in 2005. Through the first quarter of 2007, exports have increased 12% over the same period last year.
Canada is the largest importer of Wisconsin’s products, receiving 31.7% of all exports ($5.4 billion). The second largest destination is Mexico, receiving 10.8% of shipments totaling $1.9 billion. The next three larges importers were China (5.1%, $870 million), Japan (4.3%, $729 million) and the United Kingdom (4%, $686 million).
The top export industries of Wisconsin are machinery (26.5%), computers and electronic products (18.3%), transportation equipment (13.5%), electrical equipment (5.2%) and paper manufacturing (4.5%).
For Wisconsin’s manufacturing sector as a whole, 14.2% of all manufacturing jobs were engaged in export activity. In the computers and electronic products sector, 31% of the employment was related to exports. In machinery manufacturing 26.2% of employment was engaged in exports, coming to 16,300 jobs.
To view the Economic Outlook, go to www.revenue.gov or click on the following link:
Wisconsin Economic Outlook