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As the cost of purchasing or renting a home continues to increase, Associated Industries of Massachusetts recent Business Confidence Index shows that there is some caution from business owners heading into the fall.
The Business Confidence Index fell 1 point in August to 51. The reading was 1.4 points less than a year ago and slightly above the 50-point mark that separates negative and positive outlooks.
“The good news is that 12-month inflation, measured by the personal consumption deflator, held steady in July and consumer spending was robust,” Sara Johnson, chair of the AIM Board of Economic Advisors, said in a statement. “At the same time, employers in Massachusetts and across the country have turned more cautious amid concerns about the slowing economy and federal tax, spending, and regulatory policies after the November elections,”
Confidence varied regionally across the state. The Central Massachusetts Business Confidence Index, conducted with the Worcester Regional Chamber of Commerce, declined from 47.5 to 44.6; the Western Massachusetts Business Confidence Index, developed in collaboration with the Springfield Regional Chamber of Commerce, fell from 53.6 to 50.
The North Shore Confidence Index, conducted with the North Shore Chamber of Commerce, was the only region to see business confidence grow. Business confidence grew from 48.0 to 54.1 in August.
Part of the reason that employers are expressing caution is due to the rising costs of living in the state.AIM president and chief executive officer Brooke Thomson said.
“The shortage of affordable housing has been a major challenge for AIM members who report that the soaring cost of buying or renting a home in Massachusetts is driving some of our best and brightest employees to less expensive regions of the country,” he said in a statement. “The Affordable Homes Act passed by the Legislature and signed by Governor Maura Healey on August 6 is a step in the right direction that we expect will persuade employers that Massachusetts is serious about solving the problem and maintaining its competitiveness.”
