Central Mass. business leaders feel optimistic about economy for first time since May
Photo | Courtesy of Rentschler Biopharma
Business confidence in Central Massachusetts grew to 52.7 in November.
Business confidence hit milestones in Massachusetts in November as confidence throughout the state rose to its highest level in two years, while the Central Massachusetts Business Confidence Index climbed into positive territory for the first time in six months.
Climbing into positive territory for the first time since May, the Central Massachusetts Business Confidence Index rose from 48.4 in October to 52.7 in November, according to a Monday press release from the trade group Associated Industries of Massachusetts, which compiles the 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.
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While Central Massachusetts confidence had the largest positive gain in the state, its score represented the lowest of the three Massachusetts regions analyzed
The statewide Massachusetts Business Confidence Index rose to 2.2 points to 57.5 in November, a 6.7-points increase from November 2023. Last month’s increase marked the commonwealth’s fourth consecutive month of increased confidence in the economy
With the highest score in the state, Western Massachusetts’ confidence index rose from 51.9 in October to 53.2 in November. The North Shore was the sole region to decline in business confidence, yet it remained in positive territory in November, decreasing from 60.6 in October to 57.0 in November.
“Economic growth in Massachusetts was virtually identical to that in the nation as a whole, providing the latest indication that the expansion remains on solid footing. Falling interest rates and the availability of business credit are providing fuel for growth,” Sara Johnson, chair of the AIM Board of Economic Advisors, which oversees the BCI, said in the release.
Confidence among business owners throughout the state in regards to their own companies continued to rise in November, climbing from 56.3 in October to 58.2, representing a 6.2-point increase from November 2023 when business confidence sat at 52.0.
In divergence with the typical trend, larger companies were more optimistic than midsized companies in November, with the categories scoring 60.4 and 58.1, respectively. Scoring 54.4, business confidence among small businesses was the lowest of the three sizes analyzed, yet still stayed within optimistic territory.
The manufacturing index gained 2.3 points in November, remaining in optimistic territory at 52.8.
AIM President and CEO Brooke Thomson projected continued job creation and bolstered economic competitiveness throughout the commonwealth as a result of the passing of the state’s $4-billion life sciences and climatech bill, signed by Gov. Maura Healey in November.
“The bill doubles down on the state’s past successes and paves the way for Massachusetts to both retain major sectors and become the home to important emerging industries,” Thomson said in the release.
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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