AP analysis: Western states lag in recovery

AP News
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Posted: Jul 19, 2011 3:10 PM
AP analysis: Western states lag in recovery

An Associated Press analysis finds that western states are feeling the greatest economic stress two years after the recession ended.

The AP's Economic Stress Index released today shows that Arizona, California and Nevada are still suffering. Job growth in the three states has been limited by depressed home prices and high foreclosure rates.

Meanwhile, Idaho, Montana and Utah saw rising unemployment because of a delayed housing bust and job cuts.

The easing of stress over the past two years was seen primarily in Midwestern states with growth in manufacturing jobs, such as Indiana and Michigan. However, those states saw disruptions in supply chains in May because of the Japan crises.

The AP's Stress index calculates a score from 1 to 100 based on unemployment, foreclosure and bankruptcy rates. A higher score signifies more economic stress.