AP Analysis: Hardest-hit Areas Recovering Slowly

CHRISTOPHER S. RUGABER

The economic recovery is proceeding unevenly in its early stages, with areas hurt most by the housing slump still lagging behind other regions, according to The Associated Press' monthly analysis of economic stress in more than 3,100 U.S. counties.

Counties in the Southeast, the industrial Midwest and the Southwest are still struggling and have made the least improvement, the analysis of September data found. The northern half of the nation is stabilizing or improving faster than the southern half. Northern counties generally didn't suffer as much from the housing bust.

The government said last week that the U.S. economy grew at a 3.5 percent annual rate in the third quarter, ending four straight quarters of decline. But that growth is expected to slow as government stimulus programs wind down.

The AP's Economic Stress Index calculates a score from 1 to 100 based on a county's unemployment, foreclosure and bankruptcy rates. Under a rough rule of thumb, a county is considered stressed when its score exceeds 11.

Nationwide, the average county's Stress score dipped to 10.1 in September from 10.3 in August, helped by a steadying of foreclosure and bankruptcy rates. In September 2008, the average county Stress score was much lower: 6.73.