The current conditions component edged lower, staying below the no-change threshold level of 50 for the second consecutive month with a score of 40.6 in June. Somewhat counterintuitively, the June reading’s erosion came as a result of an increase in the proportion of respondents indicating “unchanged” conditions and despite a drop in the share of “worse” conditions. Much of the provided commentary could be considered mixed, with some panel members noting strong demand hampered by continued supply constraints. On the flip side, one commenter experiencing a reduction in demand characterized it positively because it allowed for catching up with backlogs.

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