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Massachusetts employers grew a bit more confident in June but remained slightly pessimistic overall in the face of federal policy changes, especially uncertainty about tariffs, according new confidence index results.

Associated Industries of Massachusetts announced Monday that its business confidence index crept up 1.1 points to 48.9 last month. The index is measured on a 100-point scale, and a score of 50 marks the line between optimism and pessimism.

President Donald Trump’s first five-plus months in office brought volatility to the sentiment of Bay State businesses, according to AIM. The index started the year at 55.6, fell as low as 41.5 in April, and since then has climbed significantly but not yet tipped back into overall optimistic territory.

“The June Business Confidence Index reveals that employer attitudes about the private sector — the prospects for their own companies, employment and the manufacturing sector — are far stronger than views of the state and national economies,” said AIM Board of Economic Advisors Chair Sara Johnson. “Participant comments suggest that employers remain concerned about tariffs and the ability of the Trump Administration to conclude individual agreements with key trading partners.”

A 90-day pause in some of the most significant tariff rates was set to expire this week, but Monday the administration officially delayed their implementation. Treasury Secretary Scott Bessent said over the weekend that 14 countries without trade deals in place will “boomerang back to your April 2 tariff level” starting in August, according to NBC News.

AIM President Brooke Thomson warned of fiscal uncertainty on the horizon that could add further strain to businesses, pointing to the near-simultaneous action last week on a fiscal 2026 state budget and a federal megabill expected to reshape state finances and federal priorities.

“All of this is a big concern for Massachusetts employers, who depend upon the government to manage its affairs prudently and minimize the tax burden on companies as they seek to grow and create jobs,” Thomson said. “The combination of budget uncertainty, shifting policy on tariffs and economic contraction in the commonwealth during the first quarter of 2025 is front-of-mind for employers.”