Mass. employers see mixed signals; remain confident
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Associated Industries of Massachusetts Business Confidence Index has been conducted for more than 100 years.
Employers in Massachusetts appear to possess a "wait-and-see attitude" about the economy, with mixed economic signals fueling the ambivalence, according to Associated Industries of Massachusetts.
The AIM business confidence index dipped 0.3 points to 56.2 in April, the business group said, putting business confidence levels about three points lower than their mark from one year ago.
"Even as employers continue hiring and the stock market recovers from early-year turmoil, tepid growth indicates that the economy is still being held back by apprehension and caution," Raymond Torto, chair of AIM's Board of Economic Advisors, said in a statement. "The good news is that Massachusetts employers -- including manufacturers -- remain confident overall in the prospects for their own companies and in the future direction of both the Massachusetts and national economies."
While the federal economy grew at its weakest pace in two years during the first three months of 2016 and consumers slowed their spending, according to AIM, the Massachusetts economy grew at a faster annual rate of 2.3 percent.
"Employers have now been more optimistic about the Massachusetts economy than about the national economy for 72 consecutive months and the first-quarter growth numbers, along with the recent expansion announcements by General Electric, Alnylam and others will buttress certainly that optimism," Paul Bolger, president of the Massachusetts Capital Resource Company and a member of the AIM Board of Economic Advisors, said in a statement. "The convergence of a vibrant knowledge economy and a well-developed financing infrastructure leaves Massachusetts in an enviable position as the larger national economy looks for direction."
The faster growth in the state economy, AIM President and CEO Richard Lord said, could be a sign of Massachusetts's "favorable industry mix and enlightened approach to economic policy."
"The House of Representatives has again passed a state budget with no new taxes and the Baker Administration continues to review regulations to determine which rules are necessary and which are not. Both are encouraging steps," Lord said in a statement. "The challenge now is to ensure that all regions of Massachusetts share in the economic growth taking place so visibly in Greater Boston."
AIM reported that confidence levels were higher in Greater Boston (58.5) than in the rest of the state (52.4) in April. Employers of all sizes indicated positive confidence levels, though mid-sized companies lagged behind smaller and larger companies, AIM said.
The AIM index has been issued monthly since July 1991. It is presented on a 100-point scale, with a score of 50 being neutral. The all-time high of 68.5 was recorded in both 1997 and 1998, the group said.
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