Business confidence in Mass. at two-year low

Business confidence in Massachusetts fell to its lowest level in more than two years last month, hit by turmoil in financial markets and concerns about the US economy, Associated Industries of Massachusetts reported. AIM's business confidence index slid to 53.2 in June, down 4.3 points from May and 3.8 points from a year ago. Readings over 50 are considered optimistic.

National economic conditions weighed heavily on businesses, with the sub-index measuring the US outlook plunging 9.5 points to 49.2 -- the first pessimistic reading since 2003. AIM officials noted the survey coincided with unsettling news, including a pick-up in inflation, rising interest rates and a stock market sell-off. Massachusetts employers were less gloomy about the state economy, with that sub-index slipping 3.6 points to 50. On a positive note, 22 percent of employers expect to hire more workers, compared to 7 percent who expect to cut payrolls.
(By Robert Gavin, Globe staff)

AIM business confidence index

SOURCE: Associated Industries of Mass.