Mass. business confidence falls

A business confidence index in Massachusetts fell 4.5 points in March to 54.7, its lowest level since June, according to a report from the Associated Industries of Massachusetts.

The group, an employer association, said the decline may be partly explained by Governor Deval Patrick's proposal for businesses to pay more taxes as the state faces a budget gap; Patrick's office has disputed any claims that his proposals would be bad for business.

"The decline in the index may well have been exaggerated by the coincidence of the survey with Governor Patrick's proposal for a dramatic increase in business taxes, coupled with a sharp drop in the equity markets," Raymond G. Torto, co-chair of the board of economic advisors for the Associated Industries of Massachusetts, said in a statement.

Survey responses received later in the month, "as legislative resistance to the governor's tax plan emerged and markets rebounded, were more favorable than those received earlier in the month," Torto added.

In the past, Patrick's office has said that his proposals would support policies that the business community finds important, such as improving the quality of schools and the safety of roads and training a high-quality work force.
(By Chris Reidy, Globe staff)