Massachusetts’ business confidence dropped slightly in January as business owners maintained worries about tariffs, federal immigration enforcement, and the cost of running their companies.
The state’s Business Confidence Index ticked downward from a score of 46.8 in December to 46.6 in January, according to a Thursday press release from the trade group Associated Industries of Massachusetts, which compiles the index.
The AIM index pulls from a survey of more than 140 Massachusetts employers and is scored on a 100-point scale; a score of above 50 represents an optimistic outlook, and a score below 50 represents a pessimistic outlook.
“Companies that participate in the Business Confidence Index continue to say that uncertainty over tariffs is making some customers reluctant to move forward with orders. At the same time, the latest data on producer prices indicate that the rising cost of imports is working its way through the economy,” Nada Sanders, professor at Northeastern University in Boston and member of the AIM Board of Economic Advisors, which oversees the BCI, said in the release.
While overall confidence remained in pessimistic territory for the 11th consecutive month in January, the economy was stable with robust consumer spending.
“Consumer spending was solid in October and November, and retailers reported a good
holiday shopping season. Reports indicate that consumer spending was especially
strong in late December and into January,” Sara Johnson, AIM BEA chair, said in the release.
The Company Index analyzing confidence owners had in their own businesses, was the sole index to remain in optimistic territory in January, earning a score of 51.4. This figure is 5.9 percentage points lower than in January 2025.
The Massachusetts Index, which assesses confidence within the state, dropped 0.6 percentage points to 39.0, representing the lowest-scoring index of the 10 published by AIM last month. This result showed employers were slightly less confident in the state’s business conditions than those of the U.S.’ as a whole, as the U.S. Index remained unchanged at 40.1 in January.
Once again, large companies were the most-confident, scoring 48.6, compared to medium sized companies and small companies, which scored 46.8 and 44.4, respectively.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare, manufacturing, and higher education industries.
