A prevailing question has emerged as the Inland Northwest economy heads into 2007: If the region posts healthy gains but falls short of matching its record performances of late, does that constitute a downturn or softening?


Well let the glass-half-full-half-empty crowd debate that one. What we do know is that based on the Journals annual look at the 12 sectors that drive the Inland Northwest economy, the prevailing direction for 2007 is decidedly positive. Expect solid growth, though not a record year.


Spokane County isnt predicted to match in 2007 the phenomenal 10,000-job gain it has produced this year, but observers expect employment growth here to beat the national average. Health care and manufacturing could be stars.


Though the possibility still looms, construction hasnt slowed much, and contractors expect a busy 2007. Some big projects are in the pipeline, and housing starts, though down this year from a record 2005, should be relatively strong in 2007. Home sales also ebbed some this year and might next year as well, though dollar volume is expected to remain strong. Prospects in the commercial real estate sector are said to be good.


Another good year in retail also is predicted, though sales likely wont rise as sharply as this year. More retail development is expected, and leasing activity should be brisk. Retail star Cabelas Inc. plans to open a store late next year in Kootenai County, where the red-hot economy of late has cooled some but remains very strong by historical measures.


The areas hospitals expect to see financial improvement in 2007, though the important health-care sector remains concerned about inadequate reimbursement levels and a steady exodus of primary-care doctors from the area.


Big sporting events slated here next year, including the skating championships in January, will fuel a strong year for tourism. Hotel room occupancy is up, and conventions worth $60 million are booked. Meanwhile, bankers say theyll be hard pressed in 2007 to match the financial-services sectors strong performance this year, though theyre predicting at least moderate growth.


High-tech manufacturers here say sales next year will gain modestly, amid efforts to usher in new products and sales strategies that could pay dividends later.


Mining companies are expected to prosper again next year as precious metals prices continue to climb, while the wood-products industry likely will suffer the opposite fate. Lumber mills have been hit hard by low prices and conditions arent expected to improve until at least late next year.


On the farm, improved prices suggest a favorable 2007 for Inland Northwest growers.