AIM: Index reflects warmer economic view
The monthly Associated Industries of Massachusetts (AIM) Business Confidence Index came in at 53 out of a 100-point scale, the highest score since August 2012, just before the impending federal fiscal cliff “crippled confidence in fiscal policy leadership,” according to Raymond G. Torto, chairman of AIM’s Board of Economic Advisors.
“Since then we have been stumbling along, with ups and downs but no real forward momentum. While this could be a another more or less random fluctuation, we have reason to hope that employer confidence is finally beginning to catch up with improving economic fundamentals,” said Torto, who is also chairman of research at commercial real estate firm CBRE.
The April score reflects a 1.9-point gain over March, and a 2.5-point gain since January. In April 2013, the score stood at 50.5.
AIM has been publishing the Business Confidence Index since 1991. It hit an all-time low of 33.3 in February 2009. Anything above a score of 50 is considered positive.
Nearly all components that make up the index improved since March, and year over year, including respondents’ assessments of factors impacting operations, sales, and employment. Michael A. Tyler, an member of AIM’s Board of Economic Advisors, said employment results are “striking,” with 32 percent of employers planning to add personnel in the next six months, up from 26 percent in the previous six months. Meanwhile, 11 percent of employers said they were planning reductions, down from 18 percent in the previous six months.
“(The results) mark a shift from a post-recession to an expansion mindset, as employers become more open to adding staff,” Tyler said.
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