4th Quarter, 1996
               (October, November, December 1996)

Gross income during Fourth Quarter, 1996 was up 9.9 percent from
the same period last year.  This was more than double the 4.8
percent increase in Third Quarter, 1996 and the largest gain
since Third Quarter, 1995.  Manufacturing was the engine behind
this growth with a 23.2 percent increase.  Retail trade was up
6.8 percent, the same gain as was posted in the third quarter.

The manufacturing sector nearly doubled its third quarter gain of
12.3 percent with a 23.2 percent increase this quarter.  Of
course, the transportation equipment sector was the primary
growth factor here with a soaring 70.1 percent increase (part of
this increase was due to the Boeing strike during Fourth Quarter,
1995).  The two other major segments of the manufacturing sector,
food products (up 2 percent) and lumber and wood products (down
4.6 percent) were neutral factors.  Other notable increases were
in apparel and textiles, up 21 percent, chemicals and allied
products, 15.9 percent, and machinery (except electric), up 20
percent.  Continued weakness was evident in some food product
categories such as meat products, down 7 percent, and grain mill
products, down 20.2 percent.  The substantial increases in two
areas, petroleum refining and fabricated metal products (cans)
were due to registration changes and reassignment of  SIC codes.

Contract construction continued to rebound with an overall gain
of 10.7 percent.  General building construction was up 8.8
percent, heavy construction (including highways), up 14.5
percent, and special trade contractors, 11.3 percent.
Miscellaneous other trade contractors was up 16.8 percent.

Transportation and allied services reported a slight drop in
gross income for fourth quarter with a 2.7 percent decline;
however, part of the reason for this decline was due to an
adjustment of the data due to reporting anomalies in the motor
freight and warehousing industry.  Growth was evident in most of
the transportation industries with strong increases in local and
suburban transit, up 19.1 percent, water transportation, up 23.7
percent, and air transportation services, 24.2 percent.  Railroad
transportation was up 5.1 percent.

Communication and utilities reported stronger growth than last
quarter with a 6.3 percent gain.  Communication activities
reported an 8.9 percent increase, gas companies were up 24.2
percent, and water companies, 7 percent.

Wholesale trade posted a 9.9 percent gain, a good showing
compared to the 4 percent increase in third quarter.  Wholesale
durable goods was the main factor here with a 15.6  percent
increase.  Durable goods had strong growth in most major
industries--the largest increase, 23.8 percent, was in sporting,
recreational equipment.  Nondurable goods was up only 3.8
percent, largely due to decreases in paper and paper products,
down 15.7 percent, and farm product raw materials, down 17.9
percent.  Within the nondurable goods sector, the strongest
industries were apparel, piece goods and notions, up 15 percent,
and groceries and related products, up 11.4 percent.

Retail trade replicated its third quarter performance with a 6.8
percent increase.  General merchandise was up 7.5 percent, and
building materials, hardware 9.2 percent.  The rest of the retail
sector was something of a mixed bag with nominal growth in auto
dealers (3.1 percent), apparel and accessories up 1 percent, and
eating and drinking establishments 1.6 percent.  Furniture,
furnishings and equipment was up 8.7 percent largely as a result
of a 15.1 percent increase in electronics/music stores.  Remember
the Christmas week snowstorms--fuel and ice retailers were up
23.5 percent.

Finance, insurance and real estate was up 4.5 percent with small
gains in both finance and insurance, and real estate and other
financial services both reported double-digit growth.

Services and other business was up only 3.4 percent with the
largest industry in this sector, business services, reporting a
1.9 percent decline; however, within the business services
industry, advertising gross income was up 15.9 percent.
Automotive repair services was up 6.6 percent, and other services
(professional services) was up 11.4 percent.

Fourth quarter gross income growth seemed to be back on track
after slow growth through late 1995 and early 1996.  Retail trade
maintained its third quarter gains, while wholesale durable goods
growth was quite strong.  Wholesale nondurable goods income gains
were low due to continued weak paper and farm product prices.
Manufacturing gross income was the main factor in fourth quarter
growth, but the secondary effects of manufacturing income growth
are beginning to show up in other parts of the state economy.