"Companies across the state say rising operating costs continue to squeeze their outlook, according to the latest Associated Industries of Massachusetts Business Confidence Index. Confidence in both the state and U.S. economies has dropped more than 15 points from a year ago, even as consumer spending holds steady and business investment shows resilience. "Consumer spending has remained relatively resilient, supported by steady job growth, rising real wages in some sectors, and strong balance sheets among higher-income households," said Sara Johnson, chair of the AIM Board of Economic Advisors."
"The AIM Index, which has been running since 1991, is based on a survey of more than 140 Massachusetts employers. It is on a 100-point scale, with 50 being neutral. A reading above 50 is positive; a reading below 50 is negative. The Index fell to 46.8 in December from 48.5 in November and was down 8.6% from a year earlier. Companies that participated in the index expressed growing concerns about the cost of doing business, including rising insurance premiums, healthcare costs, and higher supply costs."
Business confidence in Massachusetts fell for the tenth consecutive month in December, marking the most prolonged downturn since early pandemic months. The AIM Business Confidence Index declined to 46.8 from 48.5, down 8.6% year-over-year. Companies report rising operating costs—insurance premiums, healthcare, and supply costs—squeezing outlooks; some firms cite housing costs and taxation driving out workers ages 18–50. Confidence in state and U.S. economies dropped more than 15 points year-over-year, even as consumer spending remains resilient thanks to job growth, selective real wage gains, and strong high-income balance sheets. Corporate investment in technology and AI provides pockets of momentum.
Read at Boston.com
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