For the second time in four months, the current conditions component dipped below 50, suggesting at least a momentary decline in confidence from the EBCI panel. Although most panel members indicated “unchanged” conditions, the share of “worse” responses increased in January, pulling the gauge down to 46.4 this month from its December reading of 56.7. Many concerns shared by commenters involved supply side difficulties such as workforce and supply chain problems exacerbated by the Omicron-driven wave of SARS CoV-2 infections, but one comment alluded to weakening demand as well.

Read the full report.