Mass. consumer, business confidence drops

Consumer and business confidence fell in Massachusetts, according to two surveys released today.

The Massachusetts Consumer Confidence Index dropped to the lowest levels in the survey's history, according to the latest report from Mass Insight, a research and consulting firm. The state's consumer confidence index fell four points since April to an all-time low of 50, continuing a decline that began in April 2007.

But compared with a 12-point fall in national confidence and 22-point regional plunge, the Massachusetts drop looks minor. The New England consumer confidence index of 27 is just two points shy of the all--time low recorded in October 1990. "Bad as it is, Massachusetts is actually faring better than many other places," said Mass Insight President William Guenther.

Business confidence fell to recessionary levels, with the lowest reading in Massachusetts since May 2003 and the second-lowest reading since late 2001, according to the Associated Industries of Massachusetts Business Confidence Index. The index dropped 4.3 points in July to 44.6. The survey's national index, which measures local businesses' view of the US economy, fell to 35, the lowest in its 17-year history.
(By Elizabeth Campbell, Globe correspondent)