National concerns leave Colorado biz leaders less confident in late ’24

BOULDER — Heading into the fourth quarter of 2024, Colorado business leaders are feeling less confident about the state of the economy.

The University of Colorado Leeds Business Confidence Index for the final quarter of 2024 was down nearly four points from the preceding quarter, based largely on national-level issues such as next month’s presidential election and inflation. 

The index figure heading into the fourth quarter was 46.7. 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. 

“Business leaders across the state cited the election and interest rates as the top two reasons for their outlooks,” the LBCI report said. “Sentiments about the election included uncertainty, optimism and angst, while comments about interest rates both celebrated rate cuts and described higher rates as a drag on growth.”

While confidence was down across the board for the fourth quarter, each of the LBCI components bounced back upward when Colorado business leaders, 234 of whom participated in the CU survey, were asked to look a bit further into the future. The index score rebounded to 51.3 for the first quarter of 2025.

“The 4th quarter dip in the index reflects what we are seeing in similar national surveys.  The combination of a slowing national economy and political uncertainty are driving these numbers, “ Richard Wobbekind, senior economist and faculty director of the Leeds Business Research Division, said in a prepared statement. “The bounce back in Q1 2025 numbers highlights the calm after the political storm and is reassuring that growth will continue in the coming year.”

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