Business Confidence Plummets in the Wake of Coronavirus, According to the Latest LBCI

Business leaders’ confidence hit a record low in the latest Leeds Business Confidence Index (LBCI) report, primarily due to concerns about the COVID-19 outbreak. The index also captured its greatest single-quarter drop since the start of the LBCI in 2003.

Leeds’ Business Research Division (BRD) produces the LBCI quarterly, which records local business leaders’ expectations for the state and national economies as well as industry sales, profits, hiring, and capital expenditures. Nearly 425 leaders responded to the survey between March 1 and March 20.

All areas measured by the LBCI dropped ahead of Q2. Looking ahead to Q3 2020, expectations are still low but noticeably higher compared to Q2. Only hiring and capital expenditures remained above their all-time lows despite declining sharply.

Participants are most pessimistic about the outlook of the national economy. Although, they are less pessimistic about the state economy and Colorado’s potential to outperform the nation through the economic crisis.

According to Brian Lewandowski, executive director of BRD, there is less pessimism two quarters out (in Q3), which tells us they’re hopeful that things will improve before the end of the year.