Mass. business confidence slips in May

Confidence among Massachusetts employers slipped back into negative territory in May, according to a monthly confidence index compiled by the Associated Industries of Massachusetts, or AIM.

From April to May, AIM’s Business Confidence Index lost seven-tenths of a point to 49.4, below the midpoint of its 100-point scale, said AIM, an association representing Bay State employers.

“Although Massachusetts is doing better than the nation as a whole so far, we certainly see a weakening economy," Richard C. Lord, AIM’s president and chief executive, said in a statement.

AIM's press release also included a statement from Fred Breimyer, regional economist for the Federal Deposit Insurance Corp.

“Employers are experiencing a slowdown, but seem inclined to ride it out without reducing their workforces, which is good news – if they can sustain it,” Breimyer said in his statement. “Our concern must be that very low consumer confidence, nationally and in Massachusetts, signals the spread of the downturn from a few hard-hit sectors to the economy as a whole, with potentially severe consequences.”

AIM's confidence index, which has been conducted since 1991, is based on a monthly survey of AIM's member companies. On the index's 100-point scale, a reading above 50 indicates that the state's employer community is predominantly optimistic while a reading below 50 suggests a negative assessment of business conditions.
(By Chris Reidy, Globe staff)