Index: Central Mass. businesses now pessimistic about economic outlook
Photo/Grant Welker
The Worcester Regional Chamber of Commerce, which is based on Main Street in Worcester, will work with the Blackstone Valley Chamber of Commerce to help manufacturers.
Supply chain issues, the ongoing war in Ukraine, and stubbornly high inflation are all contributing factors in Central Massachusetts businesses having a more dire outlook on the economic horizon.
According to the Central Massachusetts Business Confidence Index released on Tuesday, business owners and executives in the region are overall pessimistic about the economy for the first time since the regional index debuted in November by the Worcester Regional Chamber of Commerce and the trade group Associated Industries of Massachusetts
The region scored 49.0 on the index for June, down 8.5 points from May. A BCI below 50 generally indicates an overall pessimistic outlook on the economy amongst businesses, according to the chamber report.
Though unemployment remains at low levels, the raising of interest rates by the U.S. Federal Reserve to combat inflation and rising fuel prices resulting from economic sanctions against Russia are both factors in businesses’ uncertain outlook for the near future.
“The Russian invasion of Ukraine and COVID-19 lockdowns in China have added to the supply chain woes experienced by Massachusetts employers,” Timothy Murray, president and CEO of the Worcester Regional Chamber of Commerce, said as part of the written report. “Elevated demand continues to collide with supply restraints, and most economists believe inflation will remain above the Federal Reserve’s 2% target through the end of 2023.”
The index for Central Massachusetts closely mirrors that of the statewide index released by AIM on Tuesday, which fell 3.9 points to 50.8 overall confidence. The U.S. national index fell 9.1 points for the month and has dropped more than 20.3 points in the past 12 months.
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