Massachusetts business confidence rose in July for the fourth month in a row.
The state’s Business Confidence Index was up 2.1 points in July compared to June, and 4.1 points higher than July 2025, according to the monthly report from the trade group Associated Industries of Massachusetts, which complies the BCI.
The BCI gauges business leaders’ outlook on the economy and is scored on a 100-point scale, where a score above 50 indicates optimism and those below 50 indicate pessimism. The monthly Business Confidence Index is based on a survey of more than 140 Massachusetts employers and has been published by AIM since 1991.
The index sat at 52.7 in July, its highest level in the past 12 months.
AIM cited a 2% annualized rate of economic growth in Massachusetts during the second quarter as further explanation for the optimistic business confidence. In the face of economic anxieties around inflation, geopolitical tensions, and a high cost of doing business in the state, the report said business leaders were seeing a stable level of deal flow.
At the same time, the Massachusetts Index, which measures business conditions across the state, was up 2.1 points, coming in 3.3 points higher than July 2025.
“Inflation has declined significantly from its post-pandemic peak but remains above the Federal Reserve’s target,” Sara Johnson, chair of the AIM board of economic advisors, which oversees the Business Confidence Index, said in a Wednesday announcement from AIM. “As a result, the Federal Reserve has kept interest rates relatively restrictive while signaling it is prepared to tighten further if inflation fails to continue moderating.”
Monica Benevides is a correspondent for Worcester Business Journal.
