Concerns Among Businesses Include Rising Costs, Permitting Difficulties, and People Moving out of Mass.
As the calendar flipped into a busy election year, businesses in Massachusetts entered 2026 carrying the same pessimistic view of conditions here that they held for most of 2025.
The Associated Industries of Massachusetts’ business confidence index fell 1.7 points in December, marking the 10th consecutive month that the temperature check index has registered in pessimistic territory.
Concerns among businesses about rising costs, permitting difficulties and people moving out of Massachusetts were buffeted by resilience in the economy, according to the survey of more than 140 employers.
“Consumer spending has remained relatively resilient, supported by steady job growth, rising real wages in some sectors, and strong balance sheets among higher-income households,” AIM Board of Economic Advisors Chair Sara Johnson said in a statement released Monday with the new index numbers. “Corporate investment, particularly in technology and artificial intelligence, continues to provide pockets of momentum. These factors suggest an economy that is slowing but still expanding, avoiding the downturn many feared earlier.”
The December index reading was 46.8 on a 100-point scale, down from 55.4 at the end of 2024. AIM said its Massachusetts (39.6) and US indices (40.1) are both down more than 15 points from a year ago “despite continued signs of resilient consumer activity and steady business improvement.”
AIM President and CEO Brooke Thomson identified data security and rising health care and energy costs as ongoing business concerns.
“Add in the possibility that voters may face as many as 11 statewide ballot questions in the fall, and there are many potential issues that are likely to affect business confidence this year,” Thomson said.
