AIM: Business confidence plunged in June

By Chris Reidy, Globe Staff

A Massachusetts business confidence index posted a June reading of 48.3, the lowest monthly reading since October.

June’s reading was 8.5 points lower than May’s. The 8.5-point monthly loss is the second-largest in the index’s 21-year history.

The monthly index is maintained by the Associated Industries of Massachusetts, or AIM, an association of Massachusetts employers.

“A drop was hardly unexpected, especially in view of a spate of negative economic reports during the month,” Raymond G. Torto, chair of AIM’s Board of Economic Advisors, said in a statement. “It remains to be seen how long this slump will last, and whether the size of the June decline may have been exaggerated by the timing of the responses. The economy is obviously in much better shape than it was three years ago, but it remains fragile, and employers are very aware of threats and uncertainties.”

The index uses a 100-point scale. A reading above 50 is positive, while a reading below 50 is negative. The Index reached its historic high of 68.5 on two occasions, in 1997 and in 1998. Its all-time low of 33.3 was recorded in February 2009.