Massachusetts business confidence index falls

The Associated Industries of Massachusetts Business Confidence Index declined by six-tenths of a point in September to 46.5, its fifth consecutive month below a “neutral” reading of 50 on the 100-point scale.

The index is compiled by the Associated Industries of Massachusetts, or AIM, which describes itself as a nonprofit, nonpartisan association of Massachusetts employers.

“A majority of survey respondents (51 percent) said a recession was already underway – and most of our survey responses came in early in the month, so this result does not fully reflect the alarming developments of the past two weeks,” Raymond G. Torto, chair of AIM’s Board of Economic Advisors, said in a statement. “Even so, the Index’s monthly average for the third quarter was 46.1, ten points below the average for the same period last year, and the weakest quarterly average since the second quarter of 2003, when we were just coming out of recession.”

The monthly Business Confidence Index, initiated by AIM’s Board of Economic Advisors in July 1991, is based on a survey of AIM member-companies across Massachusetts, asking questions about current and prospective business conditions in the state and nation, as well as for respondents’ own operations. 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 points to a negative assessment of business conditions.
(By Chris Reidy, Globe staff)