Mass. business confidence rose in May from April

An index that seeks to track business confidence in Massachusetts recorded a reading of 39 in May, a 3.6-point gain from April.

The business confidence index is compiled by the Associated Industries of Massachusetts, or AIM, an association of Bay State employers. Issued monthly since July 1991, the index uses a 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.

(The graph that tops this post was included in AIM's press release.)

“This is the third consecutive monthly increase since February’s all-time low, each larger than the one before,” Raymond G. Torto, chair of AIM’s Board of Economic Advisors, said in a statement. “Although the economy is still deep in recession, the ‘positive hints’ we saw in March, and the ‘bottoming out’ foreseen in April, have given way to more substantially improved confidence in May.”

The Business Confidence Index hit a record low at 33.3 in February, AIM said, and the index's all-time high is 68.5, last reached in May 1998.

The index's reading for May 2009 was down 10.4 points from the reading in May 2008, AIM said.
(By Chris Reidy, Globe staff)