Bay State business confidence comes in pessimistic for 7th straight month

For a seventh straight month employers in the Bay State are reporting that their confidence in the future of the financial system is flagging According to the Associated Industries of Massachusetts newest monthly Business Confidence Index sentiment among Bay State employers remained in pessimistic territory through September the same place it s been stuck since March The Associated Industries of Massachusetts Business Confidence Index BCI slipped points to on a -point scale the associate wrote in their latest monthly review noting that the September index was points less than the same month a year ago September s BCI represents a five-month low Sara Johnson the chair of AIM s Board of Economic Advisors revealed in a declaration included with the monthly index that employers are attempting to walk a tight rope strung between apparent economic development and mercurial exchange policies Employers are navigating the crosscurrents of an economic activity that has seen robust improvement in recent weeks but is vulnerable to sharp increases in tariffs persistent inflation and excessive federal budget deficits Real GDP grew at an annualized percent pace in the second quarter but momentum is cooling Johnson disclosed Businesses contributing to AIM s monthly analysis according to the association continue to cite uncertainty as an impediment to advancement with one manufacturer reporting that until we know how the tariffs are going to be applied and the amount our customers have largely stopped buying AIM s September survey was conducted after the Federal Reserve broadcasted it would cut interest rates for the first time this year but before the shutdown of the federal executive on October Confidence reached a one-year peak in November after the reelection of President Donald Trump when it came in at points The BCI stayed steady at about points through December and January It fell to about even in February after the th president s inauguration as the th and employers have responded to his ongoing on-again-off-again tariff and deal deals with hesitancy according to AIM s monthly surveys Despite their seven months of pessimism AIM President and CEO Brooke Thomson says that Bay State businesses continue to cautiously move forward amidst a swirl of political economic and technological uncertainty Employers are concerned about international contract the emergence of artificial intelligence and the cost of doing business in Massachusetts but at the same time the Fed just lowered interest rates unemployment has been steady and the financial markets have surged Thomson noted AIM surveys more than Bay State businesses to build their monthly Business Confidence Index the first version of which was published in July of According to AIM business confidence in the Bay State fell lowest in February of when it was measured at and reached historic highs in both and with two months in either year showing confidence