AIM: Employer confidence hit 21-month high in May
Courtesy of the Associated Industries of Massachusetts
The Associated Industries of Massachusetts (AIM) Business Confidence Index rose 1.8 points to 54.8 in May, the highest reading since August 2012.
Increased confidence was reported across all industry sectors, company sizes and regions, according to AIM. Even small business owners, whose confidence has lagged larger employers, entered positive territory in May.
“The index appears to have broken out of the narrow range within which it had fluctuated for the previous 18 months,” said Raymond G. Torto, chair of AIM’s board of economic advisors.
“We should see more investment and job creation in our commonwealth,” Torto said.
According to AIM, business confidence has been virtually neutral over most of the last year and a half as a sluggish economic recovery and federal fiscal woes made employers reluctant to take risks. But over the last three months, confidence grew steadily. Unemployment rates improved in the state and nationally, and the Massachusetts economy grew 2.6 percent in the first quarter, after a 4.4-percent surge in the fourth quarter of 2013.
Also in May:
-The Current Index, which tracks employers’ assessment of existing business conditions, increased 2.1 points to 53.5;
-The Future Index, measuring expectations for the next six months, rose 1.6 points to 56.1;
-The Company Index, measuring respondents’ confidence in their own operations, added 1 point, bringing the score to 57.1;
-and the Sales Index gained 1.9 points for a score of 58.2, while the Employment Index held steady at 54.8.
The AIM Business Confidence Index has been issued monthly since July 1991. A score of 50 on the 100-point scale is considered neutral.
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