Business confidence hit milestones in Massachusetts in November as statewide confidence rose to its highest level in two years, while Central Massachusetts’ business confidence index moved into positive territory for the first time in six months.
Moving into positive territory for the first time since May, Central Massachusetts’ business confidence index rose from 48.4 in October to 52.7 in November, according to a news release issued Monday by trade group Associated Industries of Massachusetts, which compiles the index.
The AIM Index is derived from a survey of more than 140 Massachusetts employers and is rated on a 100-point scale; a score above 50 represents an optimistic outlook and a score below 50 represents a pessimistic outlook.
(What does 2025 hold for your business and the mass-central economy? Take WBJ’s Economic Forecast Survey.)
While trust in central Massachusetts saw the largest positive gain in the state, its score represented the lowest of the three Massachusetts regions analyzed.
The Massachusetts Business Confidence Index rose 2.2 points to 57.5 in November, an increase of 6.7 points from November 2023. Last month’s increase marked the fourth month of increased confidence in the Commonwealth economy.
With the highest score in the state, Western Massachusetts’ trust index rose from 51.9 in October to 53.2 in November. The North Shore was the only region to experience a decline in business confidence, but it remained in positive territory in November, going from 60.6 in October to 57.0 in November.
“Massachusetts’ economic growth has been virtually identical to that of the nation as a whole, providing the latest indication that expansion remains on solid footing. Lower interest rates and the availability of business credit are fueling growth,” Sara Johnson, chair of the AIM Council of Economic Advisors, which oversees the BCI, said in the release.
Statewide business owners’ confidence in their own businesses continued to rise in November, from 56.3 in October to 58.2, an increase of 6.2 points from to November 2023, when business confidence was 52.0.
Contrary to the usual trend, large companies were more optimistic than mid-sized companies in November, with those categories scoring 60.4 and 58.1, respectively. With a score of 54.4, small business confidence was the lowest of the three sizes analyzed, but nonetheless remained optimistic.
The manufacturing index gained 2.3 points in November, remaining in optimistic territory at 52.8.
Brooke Thomson, President and CEO of the AIM, forecast continued job creation and increased economic competitiveness across the Commonwealth with the passage of the $4 billion Health Sciences Bill. life and climate, signed by Governor Maura Healey in November.
“The bill builds on the state’s past successes and paves the way for Massachusetts to retain major sectors and become home to important emerging industries,” Thomson said in the release.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, primarily covering healthcare and diversity, equity and inclusion.