New study shows regional effects of economic downturn
2/3/2012
While the national economy struggled during the last few years, some areas of the country actually experienced continued growth. A new study from Sentier Research highlights regions that prospered during the recent economic downturn.
Overall, median U.S. household income dropped from $53,168 to $51,287 between 2007 and 2010, a decline of 3.5 percent, according to the report. But different areas of the country were hit in different ways. While incomes in the Midwest dropped by 4.7 percent during that time, incomes in the South fell by only 2.5 percent. Households in Michigan saw median income plummet by 9.5 percent, while Wyoming residents actually enjoyed an increase of 3.6 percent.
The reason for the disparity is industry, according to a USA Today analysis of the report. Manufacturing and real estate were among the hardest hit sectors during the recession, so it's no surprise that industrial states like Ohio, Michigan and Indiana, or states like Florida and Arizona that rely heavily on real estate, were hardest hit. Meanwhile, states with large oil or agriculture industries like Texas or Wyoming were less affected by the crash.
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