Business Confidence Index Creeps Up Slightly
Businesses are still confident about the economy, according to the Associated Industries of Massachusetts' Business Confidence Index, but just barely.
The 100-point index in which a score of 50 is neutral remained basically unchanged in July compared with June, rising from 50 to 50.5 points.
Saying that the economy is still "lackluster," Raymond G. Torto, global chief economist at CB Richard Ellis Group Inc., and chairman of AIM's Board of Economic Advisors, said the uncertainty that persisted throughout the month of July about a deficit deal in Washington added to fears. The resolution didn't do much to help the situation either, he said
"The deal reached at the end of the month to end the debt crisis may or may not restore faith in national leadership," he said. "It will not end the uncertainty, however, because we don't know what the impact will be on the economy."
The surveys were also conducted before Standard & Poor's downgraded the U.S. credit rating last week.
The index has been at or above 50 points all year, beginning the year at 55.2, rising to a high of 56.1 in April and falling to the midpoint in June.
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