The Evansville economy continues to exhibit positive year-over-year growth. In 2007, personal income is estimated to increase by 5.6 percent compared to an average annual growth rate of 4.3 percent between 2002 and 2005 (see Figure 1). Economic performance in 2007 was driven by job creation in private service-providing industries, which outweighed weakness in manufacturing and retail trade. The manufacturing sector continues to be an important base to metro area household incomes and consumer spending activity, even as the economy diversifies away from manufacturing-industry dependence (see Figure 2).