Business confidence up in June but still pessimistic, survey shows

Business confidence climbed slightly higher in June but remains in pessimistic territory according to the Associated Industries of Massachusetts news that comes even as the Bureau of Labor Statistics communicated greater-than-expected job increase and lower unemployment for last month According to AIM s June Business Confidence Index employers are feeling somewhat better about the state of the financial sector than they did in May but are still unsure how to feel about the Trump Administration s tariff policies Business confidence edged up in June but employers remain pessimistic overall amid concern over tariffs tax procedures and conflict in the Middle East AIM wrote of its findings June s BCI came in at points up points from the month prior A reading of less than on AIM s -point scale indicates a pessimistic outlook according to the association Businesses have felt pessimistic since at least March Confidence fell to a post-pandemic low in April landing at points The slight upward swing seen last month is reflective of strong jobs numbers the recovery of the U S stock domain from a sudden drop seen alongside the Trump Administration s early April Liberation Day tariff announcement and because the rate of inflation stayed within moderate territory according to AIM Sara Johnson the chair of AIM s Board of Economic Advisors revealed that it appears businesses feel much better about their own financial footing than they do about the governing body s economic outlook The June Business Confidence Index reveals that employer attitudes about the private sector the prospects for their own companies employment and the manufacturing sector are far stronger than views of the state and national economies Johnson revealed Simultaneous budget debates on Beacon Hill in Boston and Capitol Hill in Washington D C only served to underscore employers uncertainty about the establishment s change in policies and their future impacts according to AIM President and CEO Brooke Thomson All of this is a big concern for Massachusetts employers who depend upon the administration to manage its affairs prudently and minimize the tax burden on companies as they seek to grow and create jobs The combination of budget uncertainty shifting agenda on tariffs and economic contraction in the commonwealth during the first quarter of is front-of-mind for employers Thomson noted The BCI comes following a surprising June jobs overview which came in about jobs higher than was originally forecast at jobs added At the same time the unemployment rate fell to from However that account also revealed that private employers only account for of those jobs with the rest of hires coming from state and local governments That s about half the public-sector job progress seen in May According to AIM hiring bosses are conducting business with tariffs in the back of their minds The deadline set by the Trump Administration for U S trading partners to secure a deal on tariffs is Wednesday and businesses are taking a wait and see approach Participant comments suggest that employers remain concerned about tariffs and the ability of the Trump Administration to conclude individual agreements with key trading partners Johnson declared AIM surveys more than Bay State businesses to build their Business Confidence Index the first of which was published in July of According to the association business confidence reached historic highs in and with two months in either year showing confidence and fell to its lowest in February of when it was