Federal Reserve Board Beige Book

The Federal Reserve Board recently released its Beige Book economic survey of conditions in the 12 Federal Reserve Districts nationwide. The following is a brief summary of the survey:

• Overall economic conditions were described in modest terms, using words such as "moderate" and "mixed" as descriptors.
• Manufacturing activity remained steady; as expected, housing related activities slowed.
• Commercial construction activities were reported as stronger than in prior reports; single family housing activities declined.
• Business (commercial and industrial) lending was seen as increasing; housing related lending was reported as weaker.

Our concerns: Can strength in the business side fully offset continuing weakness in the consumer housing sector? What will be the short- and long-term impact of the current credit crises on the economy?