Colorado business leaders’ confidence slipped into negative territory ahead of Q4 2019, recording the first pessimistic outlook since Q2 2011, and registering the lowest index value since the end of the recession. These sentiments coincide with ongoing trade tensions, an additional interest rate cut, and increased political strain in the Middle East. The most commonly cited reasons by survey responses for the pessimism included trade, politics, the economy, and uncertainty.
The Leeds Business Confidence Index (LBCI) captures Colorado business leaders’ expectations for the national economy, state economy, industry sales, profits, hiring plans, and capital expenditures. Ahead of Q4 2019, the index decreased to 46.9, with most components of the index falling below neutral (50), except industry sales. Looking further out to Q1 2020, the index sank further.