Interest rates, elections increase uncertainty among Colorado biz leaders
BOULDER — National issues — particularly the upcoming presidential election and nagging inflation — worry Colorado business leaders more than local ones, leading to a drop in optimism about the economy, a recent University of Colorado Boulder survey shows.
The Leeds Business Confidence Index fell 3.1 points from the second to third quarters of 2024, but remained overall slightly optimistic.
The index figure heading into the third quarter was 50.6. An LBCI score — which is based on impressions of the state economy, national economy, industry sales, industry profits, industry hiring and capital expenditures — of 50 is neutral.
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“While most economic data shows the U.S. remains in a growth cycle, business leaders’ responses signal tempered optimism and caution as we enter the second half of the year,” Leeds Business Research Division executive director Brian Lewandowski said in a prepared statement.
Business leaders expressed the least optimism about the national economy, which notched an LBCI score of 48.6 for the third quarter. That’s compared with a score of 51.2 for the state economy.
“The gap between the state outlook and national outlook widened ahead of Q3 2024, continuing business leaders’ long-running belief the state will outperform the nation,” the CU report said.
Of the 201 panelists surveyed, “interest rates were the most frequently cited reason for their outlooks (26% of respondents), followed by election uncertainty (21%),” according to the report.