#2021-24 September 10, 2021

Growing Uncertainty from Delta Variant Pushes Business Confidence Down in August

After rising to levels not seen since before the COVID-19 pandemic earlier this summer, business confidence declined in August according to the Associated Industries of Massachusetts (AIM) Business Confidence Index.  The drop comes as employers dealt with waves of Delta variant cases, worker shortages and supply chain disruptions.

On the zero-to-100 scale, the outlook among Massachusetts businesses declined from 65.6 in July to 62 in August, putting employer sentiment just below its mark in January 2020 (62.3). The index reached its lowest point of 38.4 in April 2020.  Even with the July to August decrease, the level was still 15.7 points higher than it was in August of 2020.

With the Delta variant changing much of the calculus around returning to pre-pandemic habits for workers and consumers, each indicator that makes up the confidence index lost ground in August after climbing during July, AIM said. Massachusetts has been averaging more than 1,000 new cases of COVID-19 each day and about 40 percent of the state’s weekly cases have come in people already vaccinated against the disease.

Revenue Surplus Continues with Monthly Tax Collections up $639 Million in FY2022

Late last week, Department of Revenue (DOR) officials reported that tax collections -  just two months into fiscal 2022 - are up $639 million, or 15.6 percent higher than in the same two-month period of fiscal 2021.  August collections of $2.49 billion were up by nearly 27 percent over August 2020 while income and withholding tax collections, the two largest sources of revenue, were up 25 percent and 20.5 percent, respectively, above August 2020 totals.

Last month, after revenues beat expectations for fiscal 2021 by roughly $5 billion, Governor Charlie Baker proposed legislation to spend almost $1.57 billion while substantially bolstering the state’s cash reserves and offsetting some of the long-term unemployment insurance cost increasing facing businesses. When formal sessions resume, lawmakers face decisions about how to allocate the fiscal 2021 surplus, ways to spend $4.8 billion in federal aid, as well as policy choices in the areas of sports betting, voting law reforms, and redistricting.

FDIC Hosting Session for New Bank Directors on October 28

The FDIC is hosting a virtual session for new bank directors with less than five years’ experience on Thursday, October 28 at 9:00 a.m.  The 90-minute session will focus on fundamental board governance issues, Directors’ roles and responsibilities, the examination process, and effective strategies to monitor bank performance.  There will also be an opportunity for participants to have their questions answered by FDIC staff.  Information to join the Microsoft Teams meeting on October 28 is below.  We encourage banks to share this information with your new directors and those that want a refresher on board responsibilities. 

Join on your computer or mobile app 
Click here to join the meeting

Or call in (audio only) 
+1 201-275-0433,,555866199#
Phone Conference ID: 555 866 199#