State's business confidence slips downward
The Associated Industries of Massachusetts (AIM) Business Confidence Index dropped 1.1 points in April to 59.1. March’s figure of 60.2 had been a post-recession high.
Still, the index has climbed in the last six months. It was 54.9 in October.
“In April the snow finally melted, the sunlight got stronger, and Massachusetts employers were a bit more positive about current business conditions – but other concerns weighed more heavily,” Raymond G. Torto, chairman of AIM's Board of Economic Advisors (BEA), said in a statement.
He said the Index’s decline was attributable to lower confidence among the state’s manufacturers, who confront both weak growth domestically and challenges in global markets due to the stronger dollar.
As in 2014, Torto noted, the Index performed well through a weak first quarter for the U.S. economy, which recorded a 0.2 percent growth rate.
“Slow growth has caused survey respondents to temper their expectations, but (AIM members) continue to foresee improving conditions ahead,” he said. “The AIM Index is up 6.1 points from last April, and 9.6 points over two years, reflecting a significantly better business climate in Massachusetts and nationally.”
Confidence levels in April were higher within Greater Boston (60.2) than in the rest of the state (57.4), AIM reported. The organization also said employers in the manufacturing sector were less positive (56.0) than other employers (62.3).
“In addition to weaker-than-expected domestic growth, Massachusetts manufacturers are seeing their exports hit by a strong dollar and by particular weakness in their two major market regions, Western Europe and East Asia,” BEA member Paul Bolger, president of Massachusetts Capital Resource Company, said in a statement.
WBJ Web Partners
Most Recent
Most Recent
0 Comments