Massachusetts
Business confidence in Massachusetts falls despite signals of interest rate relief, index shows
Business confidence slipped toward pessimism last month, with employers concerned about sticky inflation and the Federal Reserve’s plans for rate cuts amid rising unemployment numbers, according to the Associated Industries of Massachusetts.
Confidence among the state’s employers slipped from 52 points in July to 51 points in August, down 1.4 points from the same period last year and “marginally optimistic but cautious,” AIM said in their latest Business Confidence Index report.
Sara Johnson, Chair of the AIM Board of Economic Advisors, said “the good news is that 12-month inflation, measured by the personal consumption deflator, held steady in July and consumer spending was robust.”
“At the same time, employers in Massachusetts and across the country have turned more cautious amid concerns about the slowing economy and federal tax, spending, and regulatory policies after the November elections,” she said.
Survey authors note the news comes as inflation remains high but lower than it’s been in years, while the labor market continues to cool. This could be a sign the Fed will follow through with plans announced by Chairman Jerome Powell to move forward with rate cuts.
“Inflation remained steady at 2.5 percent in July, paving the way for the Federal Reserve to reduce interest rates later this month. The labor market, meanwhile, continued to cool, driving the Massachusetts unemployment rate to its highest level in four years at 4.6 percent,” AIM wrote.
Just last month, Powell signaled that the time has come for the central bank to ease up on the gas.
“The time has come for policy to adjust,” Powell said in his keynote speech at the Fed’s annual economic conference in Jackson Hole, Wyoming. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”
AIM’s business confidence index showed pessimistic feelings in July, when it fell to 49.8 points, and in September of 2023, when it was again at 49.8 points. Employers have otherwise been generally optimistic about the state of the economy in Massachusetts through the last year.
That’s not to say there aren’t pain points, according to Suzanne Dwyer, President of the Massachusetts Capital Resource Company and a member of AIM’s board of economic advisors. An employer’s feelings at the moment are entirely reflective of their industry, she said.
“The shifts in the economy appear to be segmenting business confidence by industry, geography and company size. Confidence among manufacturers, for example, continues to be weaker than the overall outlook, and layoffs in the technology sector have eroded confidence in that area as well,” Dwyer said.
AIM surveys more than 140 Bay State businesses to produce their monthly index, the first of which was published in July of 1991. According to AIM, business confidence hit historic highs in 1997 and 1998, with two months in either year showing 68.5% confidence, and hit a low in February of 2009, when it was 33.3%.
Herald wire services contributed to this report.
Massachusetts
Police shoot and kill man armed with knife in Lexington, DA says
Police shot and killed a man who officials say rushed officers with a knife during a call in Lexington, Massachusetts, on Saturday.
Middlesex County District Attorney Marian Ryan said the situation started around 1:40 p.m. when Lexington police received a 911 call from a resident of Mason Street reporting that his son had injured himself with a knife.
Officers from the Lexington Police Department and officers from the Northeastern Massachusetts Law Enforcement Council (NEMLEC), who were already in town for Patriots’ Day events, responded to the call.
Police were able to escort two other residents out of the home, initially leaving a 26-year-old man inside. According to Ryan, while officers were setting up outside, the man ran out of the home and approached officers with a large kitchen knife.
She added that police tried twice to use non-lethal force, but it was not effective in stopping him. The man was shot by a Wilmington police officer who is a member of NEMLEC. The man was pronounced dead on scene and the officer who fired that shot was taken to a local hospital as a precaution.
The man’s name has not been released.
Ryan said typically in a call like this where someone was described as harming themselves, officers would first try to separate anyone else to keep them out of danger, which was done, and then standard practice would be to try to wait outside.
“It would be their practice to just wait for the person to come out. In the terrible circumstances of today, he suddenly rushed the officers, still clutching the knife,” Ryan said.
The investigation is still in the preliminary stages and more information is expected in time. Ryan said her office will request a formal inquest from the court to review whether any criminal conduct has occurred, which is the standard process.
This happened around the same time as the annual Patriots’ Day Parade, and just hours after a reenactment of the Battle of Lexington, which drew large crowds to town.
This is a developing story. Check back for updates.
Massachusetts
‘An impossible choice’: With little federal help to combat rising costs, Head Start looks to Massachusetts for more help – The Boston Globe
In Massachusetts, roughly 1,300 slots for children across Head Start’s 28 agencies have been eliminated in the last three years because federal funding has plateaued over that time, while the cost of running the program continues to rise, according to the Massachusetts Head Start Association. Nationally, Head Start enrollment dropped from 1.1 million kids in 2013 to around 785,000 in 2022, according to research by the Annie E. Casey Foundation.
“If they didn’t get into a Head Start program, they would be sitting at home,” said Brittany Acosta, a Head Start parent in Dorchester.
It’s teachers are drastically underpaid, and there’s a serious need for a rainy day-type fund should the federal government shut down again, the association says. As they’ve done in years past, state lawmakers have offered to provide financial relief, but the Massachusetts Head Start Association’s request for 3 percent above the amount it received last year, an additional $4.6 million to help its staff keep up with the state’s rising cost of living, so far has not been allocated.

Last year, President Trump’s leaked budget proposal revealed he considered eliminating Head Start entirely. Then, in the summer, he cut off Head Start enrollment for immigrants without legal status. And during the fall’s government shutdown, four Head Start centers in Massachusetts closed because they couldn’t access their funding.
Trump’s latest budget proposal shows a fourth year without increasing funding for the program, which was established in the mid-1960s.
Michelle Haimowitz, executive director of the Massachusetts Head Start Association, said the program doesn’t want to eliminate more child slots than it already has, but paying teachers a competitive salary is equally important in order to keep them from leaving for higher paying jobs. Head Start teachers make under $50,000 annually compared to over $85,000 for the average Massachusetts kindergarten teacher.
“It’s an impossible choice,” Haimowitz said. “When we reduce the size of our programs, we’re not reducing the size of the need.”

Massachusetts is one of few states that supplements federal funding for Head Start, and last year it increased the program’s state grant from $5 million to $20 million, adding to the $189 million in federal aid it receives in this state.
“We can’t run a program without giving staff a raise for three years,” Haimowitz said. “Our next fight now is not just for survival, but it’s for thriving and growth.”
The Massachusetts House Ways and Means Committee on Wednesday released its budget, which doesn’t grant Head Start’s request of a 3 percent boost. But state Representative Christopher Worrell filed an amendment for additional funding. Worrell, whose district covers parts of Dorchester and Roxbury, said he loves Head Start’s embrace of culture, recalling one visit to a center where he could smell staff cooking stew chicken, a traditional Caribbean dish.
“I’ve been to dozens of schools throughout the district, and you don’t get that home-cooked meal,” Worrell said. “[The state is] stepping up and doing the best we can with what we have.”


At the Action for Boston Community Development’s Head Start and Early Head Start center in Dorchester, the children of Classroom 7 arrived one Monday morning and dove into bins of magnetic tiles before their teachers, Paola Polanco and Leolina Rasundar Chinnappa, served breakfast. Acosta dropped off her 4-year-old daughter, Violeta, before reporting to her teaching position at the center, where several other Head Start parents also work.
“It’s important for all Head Start parents to have the opportunity to give their child an experience in a learning environment before they actually start kindergarten,” Acosta said.
Beyond providing early education and care to children of low-income families, from birth to age 5, the program helps them access other resources, including mental health services, SNAP benefits, homelessness assistance, and employment opportunities.
It also serves as daycare for parents who might not be able to afford it, while they’re at work.
Research has shown the importance of preschool in a child’s development with one 2023 study, focused on Boston public preschools, finding that it improves student behavior and increases the likelihood of high school graduation and college enrollment.

For Rickencia Clerveaux and Christopher Mclean, the Dorchester Head Start center is the only place they feel comfortable sending their 3-year-old son, Shontz, who is on the autism spectrum. Shontz’s stimming — repetitive movements that stimulate the senses — has reduced, and his speech has improved since he joined the center in 2024, Clerveaux said.

His parents say he’s also come out of his shell. Mclean now drops his son off and gets a simple “bye” as Shontz joins his classmates, he said.
He and Clerveaux said they appreciate the specialized attention Shontz can receive from teachers, such as when staff identified that Shontz might have hearing issues. His parents were able to follow up with their doctor and get Shontz to have surgery to improve his hearing.
“It’s a safe net for parents,” Clerveaux said. “There’s so many ways that him being here helps him grow better.”
Without Head Start, Clerveaux said a lot of pressure would be put on parents to find care for their children, “knowing that they’re already struggling or not getting the ends to meet.”
“That’s a burden for everybody in the community,” she said. “If there’s no funding, there’s no daycare and parents cannot work.”

Lauren Albano can be reached at lauren.albano@globe.com. Follow her on X @LaurenAlbano_.
Massachusetts
Massachusetts leaders hold Boston Marathon safety presser
Enter your email and we’ll send a secure one-click link to sign in.
WPRI.com is provided by Nexstar Media Group, Inc., and uses the My Nexstar sign-in, which works across our media network.
Learn more at nexstar.tv/privacy-policy.
WPRI.com is provided by Nexstar Media Group, Inc., and uses the My Nexstar sign-in, which works across our media network.
Nexstar Media Group, Inc. is a leading, diversified media company that produces and distributes engaging local and national news, sports, and entertainment content across its television and digital platforms. The My Nexstar sign-in works across the Nexstar network—including The CW, NewsNation, The Hill, and more. Learn more at nexstar.tv/privacy-policy.
-
Pittsburg, PA3 minutes agoMcCorkle: Pittsburgh Steelers 2026 Mock Draft (Final Version)
-
Augusta, GA9 minutes agoAugusta nonprofit hosts family financial literacy day
-
Washington, D.C15 minutes agoStorm Team4 Forecast: A chilly, gusty Sunday before a cool start to the week
-
Cleveland, OH21 minutes agoWinners and Losers From Cleveland Cavaliers NBA Playoffs Game 1
-
Austin, TX27 minutes agoStorms dump small hail throughout Austin area Saturday
-
Alabama33 minutes agoYMCA of South Alabama holds Healthy Kids Day in Spanish Fort
-
Alaska39 minutes ago
Bear injures two US soldiers during military training in Alaska | The Jerusalem Post
-
Arizona45 minutes agoNFL mock draft: 4-round projections for Arizona Cardinals