Massachusetts Business Confidence Index falls

A business confidence index of Massachusetts employers dropped again in June, falling a half-point to 48.9 from the previous month.

The index has now posted a six-month string of weak readings.

The index is compiled by the Associated Industries of Massachusetts, or AIM, an organization of Bay State employers. A reading above 50 on the index indicates that employers are feeling positive about local economic conditions; a reading below 50 reflects a negative outlook.

“The index has lost ground in seven of the past eight months, but the reading is still close to a neutral 50, and the overall decline so far in 2008 has been minor,” Raymond G. Torto, chair of AIM’s Board of Economic Advisors, said in a statement. “Although the Index’s monthly average for the first half of the year is negative, the second quarter [49.5] was no worse than the first [49.4].”

Noting some positive signs in June, Torto added in his statement, “Survey respondents were more positive about national conditions and also a bit more optimistic in their expectations for the next six months, both of which suggest that the economy is stabilizing.”
(By Chris Reidy, Globe staff)