Employer confidence continued to fall in Massachusetts final month, in keeping with a just lately launched survey carried out by a Bay State enterprise affiliation, persevering with a pattern first seen it the tip of 2022.
“A strong performance by the Massachusetts economy during the fourth quarter of 2022 was not enough to stem a two-month decline in business confidence among employers still concerned about a slowdown in 2023,” the Associated Industries of Massachusetts stated in its newest Business Confidence Index.
According to AIM, a decline in enterprise confidence amongst employers seen in December continued via to the brand new 12 months, with confidence slipping 0.8 factors to 53.2%. That is way much less of a decline than was seen within the prior report, when confidence slipped a full 4.7 factors from a November excessive of 58.7%.
AIM says 53.2% confidence nonetheless indicators “overall optimism,” however that employers are expressing their issues concerning the future.
“Employers remain wary even though the Massachusetts economy grew at a 3.1 percent annual rate and the US economy at a 2.9 percent annual rate during the fourth quarter. Companies are concerned that efforts by central banks to moderate inflation by raising interest rates might slow the economy, perhaps into recession,” the report reads, partially.
The latest Business Confidence Index comes following Friday’s announcement the U.S. labor market noticed greater than half-a-million jobs added regardless of the actual fact the tech business was experiencing rounds of layoffs and the Federal Reserve continued to hike rates of interest, this time by one other quarter level.
“The good news is that 12-month consumer price inflation moderated to 6.5 percent in December from a high of 9.1 percent in June 2022,” Sara Johnson, AIM’s chief financial advisor, stated with the report’s launch.
“However, measures of core inflation (excluding food and energy) remain well above rates that are consistent with the Federal Reserve’s 2% inflation target. While the Fed slowed the pace of interest rate increases to just a quarter point last week, it signaled that further rate hikes are coming,” she continued.
Employers, AIM says, are feeling the opposite finish of any excellent news within the labor market.
“Job vacancies remain at historic highs, with two openings for every unemployed person,” January’s index reads.
The unemployment fee is at the moment 3.4%, in keeping with the Bureau of Labor Statistics, the bottom it has been since 1969.
AIM surveys greater than 140 Bay State companies to provide their month-to-month index, which they’ve revealed for greater than three a long time. According to AIM enterprise confidence hit historic highs in 1997 and 1998, with two months in both 12 months displaying 68.5% confidence, and hit a low in February of 2009, when it was 33.3%.
Source: www.bostonherald.com”