Colorado business leaders’ confidence slips for second quarter in a row

Colorado business leaders’ confidence, despite remaining positive overall, weakened for the second quarter in a row, according to the latest Leeds Business Confidence index released by the University of Colorado’s business school on Thursday morning.

The index, compiled by the Business Research Division at the Leeds School, shows an overall reading of 53.5 entering the fourth quarter. That’s down from 58.3 entering the third quarter. Readings of 50 or higher are considered positive, and the overall index has remained in positive territory for 16 quarters in a row now.

All state metrics examined in the index measured positive, including  business leaders’ confidence in the state economy, industry sales, industry profits, capital expenditures and hiring plans. Confidence in the national economy, however, dipped into negative territory for the first time since the first quarter of 2013.

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The state economy notched the highest reading of any one metric at 57.2 but still fell for the third quarter in a row. The reading for confidence in the national economy, meanwhile, slid seven points to 48.4. Confidence in profit expectations saw the next largest slide, from 58.5 last quarter to 53.6, while capital expenditures fell 4.5 points and sales expectations 4.3 points.

The slips in confidence come as Colorado continues to register employment growth across all of the state’s metropolitan statistical areas, with Weld County notching 4.5 percent year-over-year growth to lead the state.

“We’re seeing an unemployment rate nationally and especially in Colorado that’s well within the realm of approaching full employment,” said CU economist Richard Wobbekind, who is executive director of the Business Research Division. “But with the current volatility of the market, we’re experiencing consumers not being willing to spend as much because of the decline in their wealth. The recessionary effects of six years ago seem to remain on everybody’s mind, be it business owners or consumers.”

An audio clip of Richard Wobbekind giving an overview of the current index is available on CU’s website.