Central Mass. business confidence rose in December while state’s average dipped
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Business confidence rose in Central Massachusetts in December.
While business confidence in Massachusetts sank in December after hitting a two-year high in November, confidence in Central Massachusetts continued its upward trajectory.
The Central Massachusetts Business Confidence Index leapt 5.2 points last month to 57.9, marking the region’s second consecutive month in positive territory, according to a Monday press release from the trade group Associated Industries of Massachusetts, which compiles the index.
In contrast, the statewide BCI slipped 2.3 points in December, yet remained in optimistic territory at 55.4. The state’s confidence also remained higher than in December 2023 when its average was 2.8 points lower, sitting at 52.6.
The AIM index pulls from a survey of more than 140 Massachusetts employers and is scored on a 100-point scale; a score of above 50 represents an optimistic outlook and a score below 50 represents a pessimistic outlook.
Central Massachusetts’ confidence index was the highest out of the three regions analyzed by AIM, all of which remained in positive territory. The North Shore Confidence Index rose by 2.0 points in December to 59.0 while the Western Massachusetts Business Confidence Index was unchanged at 53.2.
December’s survey results followed the Federal Reserve Board advancing its goals of maximum employment and price stability by slashing interest rates by 25 basis points yet also added a new qualifier on the extent and timing of future rate cuts, which indicates a slower than anticipated pace in 2025, according to the release.
“The consistent optimism of employers in Massachusetts reflects the fact that the economic expansion remains on solid footing. Following the November election, businesses are more confident that federal tax policy will remain supportive of investment,” Sara Johnson, chair of the AIM Board of Economic Advisors, which oversees the BCI, said in the release.
Confidence owners had in their own businesses trended downward in December while staying in optimistic territory, dipping 2.8 points to 55.4, which was in congruence with the Massachusetts Index assessing business conditions within the state, which dropped 1.7 to 55.0
With an index of 58.3, large companies were more optimistic than small and midsized companies for the second month in a row, which scored 55.5 and 52.1, respectively.
The manufacturing index fell for the first time in six months, losing 0.5 points to a score of 52.3.
“Companies signaled caution about increasing employment. There is also caution about the competitive position of Massachusetts, with the state index trailing the US index for four months,” Johnson said.
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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