Central Mass. business confidence begins to rise, yet remains pessimistic
Photos | Courtesy of Rentschler Biopharma
The Central Massachusetts Business Confidence Index dropped to an historic low in August.
After two months of decline, business confidence among Central Massachusetts employers was back on the rise in July, though the region’s score remained in pessimistic territory.
The Central Massachusetts Business Confidence Index increased from 46.8 in June to 47.5 in July, representing the lowest confidence score among the three Massachusetts regions surveyed. The Western Massachusetts index rose the most in the state from 50.3 in June to 53.6 in July while the North Shore index dropped into pessimistic territory from 52.5 to 48.0, according to a Wednesday press release from the Associated Industries of Massachusetts Business Confidence Index.
The AIM index pulls from a survey of more than 140 Massachusetts employers and is scored from a 100-point scale; a score of above 50 represents an optimistic outlook and a score below 50 represents a pessimistic outlook.
Central Massachusetts’ July score was 4.5 points lower than that of the state overall, which rose by 2.2 points into positive territory that same month to a score of 52.0. Though no longer in pessimistic territory, Massachusetts’ score was still 0.5 points lower than in July 2023.
The state’s cautious outcome emerged as mounting signs suggest increased interest rates are tempering inflation and starting to slow the economy, according to the release. Numerous surveyed employers reported they are waiting to see the results of the November presidential election.
“The Fed kept interest rates at a two-decade high last week, while leaving the door open for rate cuts as soon as its next meeting in September.” Sara Johnson, chair of the AIM Board of Economic Advisors, said in the release. “Its policy statement noted that the economic outlook is uncertain, presenting risks to both its employment and inflation goals.”
Confidence among owners statewide in regards to their own businesses remained in optimistic territory, increasing by 2.1 points to 52.9, though it remained lower than July 2023’s score by 0.7 points.
The Massachusetts index assessing business conditions within the state reflected similar outcomes, having risen 1.9 points to 51.6 in July, yet was still 2.7 points lower than in July 2023.
Though manufacturing was the lowest scoring constituent among employers yet again and still stayed in pessimistic territory, its score rose by 1.1 points to 46.1.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare and diversity, equity, and inclusion industries.
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