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through a rough patch. Overall, the forecast households. Lingering geopolitical for non-manufacturing jobs predicts a rather uncertainty, which undermines consumer subdued rate of growth that averages just 1.6 confidence and alters normal spending habits, percent throughout the forecast horizon of could also negatively impact Oregon's 2008 to 2015. economy. Furthermore, housing and credit troubles will continue to affect consumer Figure 2: Oregon and U.S. Real Personal behavior in the near future. In sum, although Income Growth Trends positive growth is expected throughout the forecast period, there are few signs that a 7°'° - robust economic expansion is around the 6% - corner. A summary of economic indicators for 5% - Oregon is contained in Table 2 below. m 4% - U ~ 3% - m c v 2% - m a 1% - 0% - -1 % - 1990 1995 2000 2005 2010 2015 Oregon Real Personal Income Growth -U.S. Real Personal Income Growth Although employment growth has slowed in recent quarters, Oregon personal income has demonstrated continued gains. Personal income, about 55 percent of which is derived from wages and salaries, appears to have increased by approximately 6.1 percent in 2007. when adjusted for inflation, this increase translates into a 2.3 percent change in real personal income for Oregonians. As shown in Figure 2, this growth rate falls below the nation's real growth in personal income of approximately 3.5 percent. The forecast predicts personal income growth of less than 2.0 percent for both Oregon and the nation during 2008. Oregon's growth in real personal income will surpass the nation's for the forecast period, averaging 3.2 percent annually compared to the nation's 2.8 percent. In sum, Oregon's economy is expected to grow moderately during the next several years as national economic conditions worsen. Slowing growth, both nationally and globally, may lead to softening demand for Oregon's goods and services by both businesses and 4