Rebounding from the second-largest loss in nearly two years in June, the Associated Industries of Massachusetts’ (AIM) Business Confidence Index rose 3.9 points in July to 52.2.
The gain moved the index back into positive territory, above 50 on the 100-point scale.
Raymond G. Torto, chair of AIM’s Board of Economic Advisors, said, “The fluctuations in business confidence reflect a continuing high level of uncertainty in the economic outlook, which makes Massachusetts employers cautious about expectations and reluctant to add to the workforces even when they are doing relatively well.”
Torto went on to point toward slow growth in the U.S. economy and export markets, economic trouble in the eurozone, and the upcoming presidential election as sources of uncertainty.
Sub-indices also rose in July after falling in June. The Current Index, tracking employers’ assessment of existing business conditions, was up 3.2 points to 51.9, while the Future Index, measuring expectations for the next six months, added 4.6 to 52.5.
Confidence was higher in July among manufacturers (up 3.6 points to 53.2) than among other employers (up 4 points to 50.9).
Image credit: FreeDigitalPhotos.net.
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