Massachusetts Business Confidence Rises, Still in Negative Territory
Business confidence among Massachusetts employers showed signs of recovery in May, though it remains in negative territory due to ongoing economic and policy uncertainty, according to the Associated Industries of Massachusetts (AIM).
The AIM Business Confidence Index (BCI) increased by 6.3 points in May, reaching a level of 47.8. This marked a break in a three-month downward trend, though the index remains 5.5 points below its value from the same time last year. A score below 50 on the 100-point scale indicates a generally pessimistic outlook among employers.
This rebound in business confidence comes alongside a similar trend in U.S. consumer confidence, which recently bounced back from an almost five-year low. Improved perceptions of the economy and the labor market have played a key role in the recovery. Supporting this trend, the federal government recently reported that U.S. employers added 139,000 new jobs in May, exceeding expectations.
“Employers and consumers alike appear to have settled into a wait-and-see period as the administration conducts trade negotiations with individual nations,” said Sara Johnson, Chair of the AIM Board of Economic Advisors (BEA), the body that oversees the BCI.
While the uptick in business sentiment is a positive sign, lingering uncertainty continues to influence the cautious approach among Massachusetts employers.
