Mass. Business Confidence Rebounds

Employer confidence in the Massachusetts business climate rebounded last month after the federal government fully reopened, according data released today by the Associated Industries of Massachusetts (AIM).

AIM’s business confidence index rose from 46.7 points in October to 50.2 points in November, with a 50 rating on the 100-point scale representing a neutral assessment. Business confidence was at 46.8 at this time last year.

“Coming back from the psychological and economic impact of the federal shutdown, employers still see an upside,” said Michael Tyler, chief investment officer at Eastern Bank Wealth Management. “They do not expect politics to bring growth to a halt.”

All of AIM’s sub-indices were up at least 2.5 points over October, which was a weak month due to the partial government shutdown.

Despite faring better than most other states during the recession, economic growth in Massachusetts is now merely average due in part to significant exposure to federal spending cuts, AIM president Richard Lord said.

“Despite headwinds from federal tax increases and sequestration, economic growth started strong, but then weakened in the second quarter, picked up again in the third, and was probably impaired in this quarter by the shutdown,” Lord said.

Some 32 percent of employers reported growth in the size of their workforces over the past six months, the survey found, while just 23 percent reported cutting jobs.

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