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"Manufacturing Rebound, Housing Prices, to Aid Midwest's Recovery"
"CLEVELAND, Ohio -- Although the Midwest continues to lag the overall U.S. economic recovery, a manufacturing rebound and steadily rising housing prices will help it close the economic performance gap, according to a quarterly report released today from National City Corp.The report is published in a new publication, The Region, distributed by National City and available online.The Midwest, defined as Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio and Pennsylvania, recovered only 17% of jobs lost since the last recession, compared with the national average of 77%, the report states. Ohio and Illinois fared worst, recovering only 6.3% and 11.7% of lost jobs, respectively. Missouri's 78.2% job recovery reflected the nation's overall average, and Pennsylvania's 47.8% was also more upbeat than other Midwest states."To understand this discrepancy, we must first look to the factory sector, which accounts for a disproportionate share of jobs in the region," said Richard DeKaser, chief economist at National City and co author of the report. "However, the economic recovery, a cheaper dollar and an intense effort to rebuild depleted inventories are all contributing to the factory rebound that is now under way."Overall, National City's report shows Midwest states trailing the nation, with growth in gross state product among the seven states rising 3.8% over the past year, a full percentage point less than national gross domestic product. The market asserts that the housing sector is partly to blame, as the area has failed to keep pace with stronger home sales and price increases elsewhere, the report stated. Hence, not only has construction activity been more subdued, but so too have wealth gains, an important driver of consumer spending."As interest rates climb and home sales decline, however, the Midwest region's housing-related dip is expected to be more subdued relative to the nation," DeKaser said.National City Corp. (NYSE:NCC), one of the nation's largest financial holding companies, operates its banking network primarily in Ohio, Illinois, Indiana, Kentucky, Michigan, Missouri and Pennsylvania.Visit National City Bank at www.NationalCity.com. "