Thomas B. Mandelbaum reports that the region’s economy continued to expand in 1988, its sixth successive year of growth. Moreover, District income and employment reached record highs, while the regional unemployment rate declined to its lowest level of the decade. Unlike the previous five years, however, in which regional employment growth approximated the national pace, the District’s job growth was substantially slower than the national average last year. The author discusses the factors that caused this sluggishness and describes other significant developments in the Eighth District's business economy during 1988. In addition, suggests that a further slowing of the regional economy is likely in 1989.