Mass. business confidence up
Businesses in Massachusetts shows a bit more confidence in business conditions in October, according to the results of a monthly survey by Associated Industries of Massachusetts (AIM).
AIM’s business confidence index rose a half-point in October, to 54.9 on a scale of 1 to 100 (50 is neutral) for its sixth increase in the last eight months.
October’s reading marked a jump of 8.2 points over October 2013, which was the month the federal government shut down, according to AIM.
“In that context, it is encouraging to see our U.S. Index of national conditions back above 50, up from below 40, and predominantly positive assessments of the business climate from all categories of Massachusetts employers,” Raymond G. Torto, chair of AIM's Board of Economic Advisors (BEA), said in a statement.
The index is based on a survey of Massachusetts employers. The Massachusetts Index, which assess conditions within the commonwealth, added 2.6 points on the month to 53.3, while the other component, the Index of national business conditions, was up 3.6 to 50.6.
But the month-by-month increases may not continue. Torto noted that respondents to AIM’s survey foresee a slight weakening of conditions in the six months ahead.
“There may be some uneasiness about the upcoming elections and the long-expected end of quantitative easing by the Federal Reserve,” he said, “along with concern about the state of the global economy.” Torto cited slowing expansion in China and Europe teetering on the edge of a recession. “Europe’s condition is especially important to Massachusetts because of extensive ties of trade and direct investment,” he said.
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