BOSTON (WWLP) – Inflation is effecting every part of life, including business confidence. The threat of a recession has been plaguing businesses, and last week a report found that business confidence ended last year on a downward trend.
The Associated Industries of Massachusetts (AIM) put out a report last week that showed that its business confidence index lost 4.7 points in December, ending the year at a 54 in a 1 – 100 scale. This is lower than its level in December of 2021 by 2.7 points.
AIM cited concerns that the central banks’ work to slow inflation by increasing interest rates might tip the economy into a recession. The business group said that companies continue to struggle to hire and keep employees.
The unemployment rate in Massachusetts is below the national average, however, the state has been losing residents to lower cost states.
Chris Geeham, Executive Vice President of AIM told 22News, “We are probably heading for a light recession, if we’re not in one already. Now, keep in mind that in Massachusetts we already have two quarters last year where gross state product was actually down, growth was actually down, and that defines a recession.”
At the end of the month, economists plan to speak at the consensus revenue hearing, which purpose is to learn how much tax revenue lawmakers can plan to put into their budgets. State officials have greatly underestimated tax collections in the past two budget cycles, leading to historic tax refunds.
AIM surveyed 140 Massachusetts employees and anything over 50 is considered “positive.”