A.I.M.'s business confidence continues gains in September.

BOSTON--(BUSINESS WIRE)--Sept. 30, 1996--Associated Industries of Massachusetts announced today that its business confidence index gained one point in September to 62.3.

"Massachusetts employers this month reported the most favorable overall business conditions since the end of 1994," said Raymond G. Torto, chairman of A.I.M.'s board of economic advisers and principal, CB Commercial/Torto Wheaton Research. "Even more significant is the trend line, with four increases in five months and the index's strongest quarter since early 1995," Torto added.

A.I.M. is an employer association of 3,900 Massachusetts companies. The business confidence index is based on a monthly survey of member-companies representing a spectrum of industries within Massachusetts. Readings above 50 indicate that respondents are more optimistic than pessimistic about current and prospective business conditions for their firms and in the state and national economies.

"The most striking aspect of September's index is the record high for the component tracking business conditions within Massachusetts," noted Kathie S. Stevens, vice chairman, USTrust Co. "When we began the index in 1991 this reading was in the mid-20s but now, at 61.0, is substantially even with the index of national conditions (61.3)."

Wayne Ayers, chief economist for BankBoston, pointed out that employers were cautiously optimistic about their companies' situations, tempering stronger confidence in current conditions and employment trends with more moderate estimates of future sales. "This is the same sort of message about the economy that we are getting from various sources -- definitely positive overall, but with problems and concerns in some areas," Ayers said.

Commenting on the September survey, John Gould, A.I.M.'s president and CEO, said, "This month, for the first time, a majority (51 percent) of our respondents rated the state's current business climate `good.' Massachusetts is at last catching up with the nation's economic growth; our challenge now is to sustain the momentum toward stable, broad-based prosperity."

CONTACTS: Bank of Boston

Wayne M. Ayers, 617/434-2450

or

Associated Industries of Massachusetts

John Gould, 617/262-1180

or

USTrust Co.

Kathie Stevens, 617/726-7167

or

CB/Torto Wheaton Services

Raymond G. Torto, 617/345-0011