April 23, 2024 3:24 pm
Colorado’s business confidence sees first positive shift in 2 years

The Leeds Business Confidence Index from the University of Colorado Boulder shows that business confidence in Colorado is on the rise, with concerns over inflation and recession easing. This marks the first positive outlook in two years. Looking ahead to the second and third quarters, 178 panelists surveyed reported positive expectations for the national economy, state economy, industry sales, profits, hiring plans, and capital expenditure.

This significant change from high inflation dominating headlines in 2022 is a cause for optimism among Colorado business leaders. A score above 50 in the index indicates a positive outlook, while a score below 50 indicates a negative outlook. The overall index increased from 45.3 in the first quarter to 53.7 for the second quarter and 53 for the third. All six categories in the index improved year-over-year and remained in positive territory.

Respondents attributed their improved outlook to general economic conditions, politics including the upcoming election, and interest rates. Colorado business leaders showed more optimism about the outlook for their state’s economy compared to the U.S., scoring 54.1 compared to 51 for the U.S., indicating that they expect better days ahead for their businesses.

Despite inflation remaining a concern with consumer prices up by 3.5% year-over-year in January in Denver-Aurora-Lakewood area according to US Bureau of Labor Statistics it is expected to stay above 3% this year due to continued concerns about supply chain disruptions caused by COVID-19 pandemic effects on global logistics chains and geopolitical tensions affecting commodity prices . Despite initial forecasts predicting mild recession due to higher interest rates from Federal Reserve job growth remained strong with addition of around 72,700 jobs in Colorado which represents an annual growth rate of around 2%

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