Midwest little affected by credit crunch, Fed says

Economic activity in the Chicago region expanded modestly in July and August, the Federal Reserve Bank said today in its Beige Book report.

The report, which is issued eight times a year based on interviews and other means of gathering information on economic trends, said manufacturing expanded at a slower pace, household lending declined and business lending was flat.

Residential construction continued declining and non-residential construction held steady.

A central Indiana car dealer said vehicle shoppers weren’t discussing recent financial market turmoil despite overall Fed findings that vehicle sales slowed in early August.

An Indiana banker said title companies now are demanding that mortgage brokers settle by wire transfer rather than by check.

The area of the Midwest covered by the Chicago district includes Iowa and most of Indiana, Illinois, Michigan and Wisconsin.