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.

BOSTON – John Deaton will take on Elizabeth Warren for a seat in the U.S. Senate after winning the Massachusetts Republican primary on Tuesday, the Associated Press projects.

“I am truly humbled by the tremendous outpouring of support and grateful for the faith the voters have placed in me,” Deaton said in a statement. “Tomorrow, we begin the next phase of the campaign – an effort that will hold Elizabeth Warren accountable for her failures on the border, the unaffordable cost of supporting a family, a broken healthcare system, abandoning our ally Israel, and restoring faith in our politics. Voters are turning their back on divisive partisan politics and are ready to support a message of optimism, unity, and solving problems.” 

Deaton was by far the best-funded candidate in the GOP field, thanks mostly to the $1 million he loaned to his campaign. He more than doubled Quincy City Council President Ian Cain’s spending and had about $975,000 in the bank as of the end of June. In comparison, Cain had about $22,000 left in his war chest.  

Deaton also defeated engineer Robert Antonellis, who described himself as a staunch supporter of Republican nominee for president Donald Trump.

Cain released a statement after the AP projected Deaton won the primary.

“While tonight’s results are disappointing, I hold my head high for the movement and progress we have made over the course of this campaign. This was never about a singular person, but about highlighting the failures of our current representation and pushing for a brighter future for Massachusetts. I still have hope that we can finish that job,” he said. “I will continue to fight for the Commonwealth each and every day. Thank you to my family, friends, and volunteers who stood with me in this fight.”

Democrats have a lock on the Bay State’s congressional delegation, with both U.S. Senate seats and all nine U.S. House seats firmly in their column. They also hold lopsided supermajorities in both chambers of the state legislature, where all seats are up for election in November. Nonetheless, Republicans hope they can build on their toehold in the state Senate, where they flipped a vacant Democratic seat in 2023. 

In August, Deaton joined his opponents for a debate in the WBZ-TV studio, hosted by political analyst Jon Keller. Deaton addressed why he believes he’s the right person to defeat Warren in the general election.

“She’s great at fighting against the rich and the wealthy. That is not the same as fighting for the poor and the middle class. I want to uplift people. I want to bring people up, expand the middle class, bring people out of poverty, like I brought myself out of poverty,” Deaton said. “I can do that without tearing people down… and she is the queen of finger-pointing politics.” 

A Brazilian man living in the United States illegally has been charged with raping an underage Massachusetts person, federal officials said Tuesday. 

Warley Neto, 24, was arrested on Aug. 23 and is charged with five counts of rape, U.S. Immigration and Customs Enforcement (ICE) said. 

“Warley Neto allegedly repeatedly assaulted a Massachusetts child and represents a significant threat to the safety of our neighborhoods,” said Todd M. Lyons, the ERO Boston Field Office Director. “We are grateful for the cooperation of the Dukes County Sheriff’s Office for prioritizing public safety and allowing Neto’s safe transfer of custody to ERO.”

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Neto illegally entered the U.S. on March 11, 2018 near Paso Del Norte, Texas, authorities said. He was served a notice by U.S. Border Patrol to appear before a federal immigration judge and released on March 13, 2018.

The Edgartown Police Department arrested Neto on suspicion of strangulation or suffocation, assault and battery on a family member, and threatening to commit crime. An immigration detainer request against Neto was issued with the Dukes County Jail and House of Correction. 

On June 8, 2023, Neto was found guilty of the charges. He received a 364-day prison sentence, but a judge suspended all but 90 days. 

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On Jan. 12, Neto was arrested again for five counts of rape of a child and five counts of enticing a minor under 16, authorities said. 

Another immigration detainer request was lodged by ICE on Aug. 22 with the Dukes County Jail and House of Correction and the Dukes County Superior Court. The request was honored, and immigration authorities were notified they could take Neto into federal custody. 

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“Too often local jurisdictions refuse to honor immigration detainers and release dangerous offenders back into the community to reoffend,” Lyons said. “ERO Boston will continue to apprehend and remove the most egregious noncitizen offenders from New England.”