Sentiment regarding current conditions appeared to take a breather this month after reaching a high-water mark in April. With responses of “unchanged” conditions making up a majority of the EBCI panel’s input, the current component retreated 24 points to a still-robust reading of 65.4 in May. Comments, largely focused on labor and materials shortages and resultant inflationary pressures, were suggestive of constrained growth. Those comments aligned with the quantitative summary that showed not only mostly unchanged conditions, but also a smattering of “better” conditions reported and very few indications that the business environment was “worse.”

Read the full report.