3rd Quarter, 1996
                 (July, August, September 1996)

Gross income during Third Quarter, 1996 was up 7.1 percent from
last year.  This compares to an 8.6 percent increase in Second
Quarter, 1996 and a 4.8 percent increase in First Quarter, 1996.
Manufacturing was the leading sector for third quarter with a
12.3 percent gain, replicating the 12.2 percent increase in
second quarter.  Retail trade was up 6.8 percent, slightly better
than the 5.5 percent increase last quarter.

Strong growth was seen in a number of manufacturing industries.
Manufacturing of food products was up 10 percent with all food
product categories reporting gains except bakery and
confectionery.  Grain mill products was up over 27 percent with
strong grain prices during the quarter.  Other double-digit gains
were seen in apparel and textiles, up 16.4 percent, fabricated
metal products 15.1 percent, machinery 10.4 percent, and
transportation equipment 28 percent.  The large increase in
petroleum refining was due to SIC changes.  The largest single
manufacturing industry, aircraft and parts, was up 35 percent.

Contract construction rebounded from second quarter to post an
overall gain of 6.1 percent.  General building construction
(including highways) was the big gainer here with a 9.3 percent
increase, compared to an 8.9 percent decline in second quarter.
Special trade contractors was up 5.8 percent; within special
trade contractors, the plumbing and heating contractors category
was up 12.4 percent.

Transportation and allied services continued strong growth with a
10.6 percent overall increase. Air transportation services was up
18.3 percent, motor freight and warehousing 18.2 percent, and
local and suburban transit 15.3 percent.  Railroads reported an
8.4 percent decline.

Communication and utilities reported nominal growth with a 3.5
percent increase.  The largest utility within this sector,
communication, was up 1.8 percent.  Water utilities and other
utilities were up 5.8 percent and 8.3 percent respectively.

Wholesale trade was up only 4 percent compared to a 7.2 percent
increase in second quarter.  However, within wholesale trade,
durable goods continued strong growth with an 8.1 percent
increase.  Lumber and construction materials was up 13.1 percent
and sports equipment continued very strong with a 22.8 percent
increase on top of an 18.6 percent gain in second quarter
(perhaps the Olympic games during Third Quarter, 1996 was a
factor in the sports equipment gains).  On the nondurable goods
side, things were definitely negative.  All categories reported
declines except drugs and sundries which was up 3.8 percent.
Farm-product raw materials had a large decline, down 10.9
percent, closely followed by paper and allied products, down 10.7

Retail trade recovered somewhat from several quarters of
lackluster performance with a 6.8 percent increase.  General
merchandise stores had the largest increase in this sector with a
14.1 percent gain.  Miscellaneous retail stores was up 10.1
percent, and the largest retailing industry, automotive dealers
and gas stations, was up 8.1 percent.

Furniture, furnishings and equipment sales growth slowed to 5.5
percent as the hot electronics/music store category was up only
8.1 percent after several quarters of double-digit growth.
Retail appliance sales reported a 1.4 percent decline.

Finance, insurance and real estate was up 9.3 percent led by a
34.1 percent increase in insurance.  Finance, representing over
two-thirds of the gross income in this sector, was up 3.9

Services and other business was up 6.6 percent with the largest
industry in this sector, business services, reporting an 8.2
percent increase.  Within business services, computer services
was up 10.1 percent.  Medical and health services was up 5.6

Although gross income growth during third quarter was not as
strong overall as second quarter, retail trade was stronger and
wholesale trade was slightly higher in spite of declines in
wholesale nondurable goods.  The nondurable goods weakness was
mainly due to price declines in paper products and farm-product
raw materials.  Manufacturing continued strong, steady growth.