Central Mass. businesses less confident in December, but retain tempered optimism

Image | Courtesy Worcester Regional Chamber of Commerce Central Massachusetts Business Confidence Index fell six tenths of a point in December.

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By Timothy Doyle

The Central Massachusetts Business Confidence Index fell six tenths of a point in December to 52.8, according to the Worcester Regional Chamber of Commerce and Boston-based Associated Industries of Massachusetts.

The index in December is seven points below the score a year ago, showing a downward trend throughout 2022, skewing lower since September.

“It was a year in which employers faced a multitude of challenges, from untangling supply systems and managing labor costs to retaining workers and processing new patterns of post-COVID customer behavior,” said Timothy Murray, president and CEO of the Worcester Regional Chamber in a Monday press release.

Employers remain concerned that efforts by central banks to moderate inflation by raising interest rates will slow the economy, perhaps into recession. At the same time, labor remains in tight supply with many employers continuing to struggle to hire and retain employees, according to the release.

Statewide, AIM puts business confidence at 54 points in December, dropping 5 points from the previous month. The statewide AIM Index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.

The indices are based on 100-point scales with 50 being neutral and scores higher than 50 being positive.