Massachusetts employers ended 2024 slightly more optimistic about their economic outlook than at the end of 2023, though they raised some concerns in the process about the pace of future interest rate cuts and the competitiveness of the state
Associated Industries of Massachusetts reported on Monday that its business confidence index stood at 55.4 in December, nearly five and a half points above the 50-point line that divides pessimistic and optimistic territory.
This year-end score was 2.8 points higher than in December 2023.
“The continued optimism of employers in Massachusetts reflects the fact that the economic expansion remains strong. After the November election, businesses are more confident that federal fiscal policy will continue to support investment,” said President the AIM Board of Economic Advisers, Sara Johnson. “However, businesses indicated caution about increasing employment. There is also caution about Massachusetts’ competitive position, with the state’s index trailing the U.S. index for four months.”
The AIM index, which is calculated from a survey of more than 140 Bay State employers, was down 2.3 points from November to December.
Throughout 2024, it fluctuated as high as 49.8 and as high as 57.7.
The national index fell slightly from 57.4 in November to 55.8 in December, a drop of 1.6 points, according to the AIM.
AIM President Brooke Thomson praised Massachusetts lawmakers for completing a package of legislation before the end of the 2023-2024 session, including a last-minute commitment to overhauling hospital oversight.
“This measure added up to a million [dollar] a housing bond bill, a comprehensive energy localization bill, a wage transparency bill and a $3.9 billion economic development measure all made for an important year for the Massachusetts economy,” he said Thomson.