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It’s not just the war with Iran: Businesses in Massachusetts are also concerned about the potential for rent control in the state, according to the latest survey from a major statewide business group.

The Associated Industries of Massachusetts Business Confidence Index lost five points to end the month of March at 47 on a 100-point scale. While confidence dropped, the index is currently a one-point improvement year-over-year. Additionally, medium-sized companies (confidence reading of 49.8) and large companies (48.9) were more confident than small companies (44.2).

In the AIM survey, carried out monthly on a group of over 140 Massachusetts employers, a reading of 50 indicates the break point between optimism and pessimism.

Employer sentiment moved positive in February, but March’s reading means Massachusetts employers have now been pessimistic for 12 of the past 13 months.

AIM’s Massachusetts Index, a subset of the larger Business Confidence Index which assesses business conditions within the state, dropped 6.8 points to end March at 38.5. The Massachusetts Index saw a 6.2-point decline year-over-year in March. The year-over-year decline was the largest in AIM’s recorded history, but returned the index to the generally pessimistic state it’s been in for much of the last 12 months.

Adding to growing level of concerns about energy costs tied to the Iran war, AIM members told surveyors they’re concerned about the potential for rent control to be enacted in Massachusetts.

“Rent control as outlined in this ballot question will reduce housing supply, hurt property values, and create unintended economic consequences,” AIM President and CEO Brooke Thomson said in a statement. “We are already seeing developers bypass Massachusetts and build desperately needed housing projects in other states.”

AIM and two other business lobby groups announced Monday morning that they were joining the Housing for Massachusetts coalition campaigning against the proposed rent control ballot question.