The Current Conditions component declined to 55.6, down sharply from 72.2 in December. Respondents reported that 22 percent experienced “better” conditions, 11 percent reported “worse,” and 67 percent saw conditions remain unchanged. Compared to last month, the distribution of responses reflects a pullback in momentum and greater variability in operating conditions across firms. Overall sentiment remains slightly expansionary, but at a notably weaker level than in December.

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