The state’s enterprise group is feeling simply barely extra optimistic concerning the future than they’ve for the final couple of months, reversing a downward slide first seen in December and attributed to worker shortages.
“Business confidence remained essentially flat during February as employers attempted to gauge whether inflation, recession, growth or labor shortages would dominate the Massachusetts economy in 2023,” the Associated Industries of Massachusetts wrote of their February Business Confidence Index.
According to AIM, a decline in confidence seen in December and January was partially reversed final month, with total employer sentiments rising by 0.3 factors to 53.5%, a confidence stage that’s “3.2 points lower than a year ago but still in optimistic territory.”
Confidence fell sharply in December, dropping a full 4.7 factors to 54%. Confidence slipped once more in January by 0.8 factors, falling to 53.2%.
Employer sentiment continues to be pushed by a swirl of typically contradictory financial indicators,” AIM wrote. “Leading indicators suggest that economic growth will decelerate during 2023, yet the state and national economies continue to exhibit a strong labor market, low unemployment, and a persistently high rate of inflation.”
The nation added about half-a-million jobs to the economic system in January, in response to the Bureau of Labor statistics, and the unemployment charge is sitting at 3.4%, a 50-year low. That might and needs to be excellent news, however it’s additionally coming at a time of severely elevated inflation and making it exhausting for employers to search out employees, in response to Sara Johnson, chair of the AIM Board of Economic Advisors.
“The personal consumption expenditures price index rose 0.6% month-on-month and 5.4% year-on-year in January. While that is down from a rate of 7.0% year-on-year in June 2022, inflation is still far above the Fed’s 2% target,” Johnson mentioned together with the February report. “The persistent shortage of workers across virtually all industries is maintaining upward pressure on wages and services prices.”
AIM surveys greater than 140 Bay State companies to supply their month-to-month index, which they’ve revealed for greater than three many years. According to AIM, enterprise confidence hit historic highs in 1997 and 1998, with two months in both yr displaying 68.5% confidence, and hit a low in February of 2009, when it was 33.3%.
Source: www.bostonherald.com”