The confidence of Colorado business leaders continues to be positive heading into the fourth quarter and has moderately increased compared with a year ago, according to the most recent Leeds Business Confidence Index (LBCI) released today by the University of Colorado Boulder’s Leeds School of Business.
It’s not as bullish, however, as it was a quarter ago with slight drops across the board resulting in a current overall reading of 59.5, down from 61.2 heading into the third quarter of 2014.
“I wouldn’t put too much concern in a slight dip in the numbers,” said economist Richard Wobbekind, executive director of the Leeds School’s Business Research Division, which conducts the LBCI. “Last year and this year, we’re growing at the fastest rate in terms of employment growth that we’ve seen since the year 2000, so we’re really on a very, very strong growth rate for jobs year over year.”
Expectations measured positive -- at 50 or higher -- for all of the metrics within the index, which include the national economy, state economy, industry sales, industry profits, capital expenditures and hiring plans. The favorable standings represent 12 consecutive quarters of positive expectations, according to the LBCI -- a report that’s now in its 11th year.
Confidence in profits saw the greatest decrease by 2.4 points, going from 61.2 in the third quarter down to 58.8 this quarter. Confidence in sales slipped to 62.1, down from 63.4 last quarter.
Confidence in the state economy outpaces confidence in the national economy -- a 38-quarter trend in the LBCI. State economy confidence posted a reading of 63.9 points heading into the fourth quarter, down from 65.9 in the third quarter.
After posting the greatest increase heading into the third quarter -- one point -- capital expenditures have fallen from 59.6 to 57.8 this quarter.
Though hiring expectations also fell slightly to 57.9, down from 59.5 last quarter, employment in Colorado has recorded 47 months of year-over-year growth.
While Colorado employment figures vary greatly by industry, labor markets in all of the state’s metropolitan areas saw growth in August -- a 12-month trend -- compared with a year earlier. The top three areas showing growth are the Greeley (+4.7 percent), Boulder (+3 percent) and Denver-Aurora-Broomfield (+2.2 percent) Metropolitan Statistical Areas (MSA). The Greeley MSA is 13.9 percent above prerecession levels.
Employment growth also was recorded in the following MSAs: Fort Collins-Loveland (+2 percent), Pueblo (+1.9 percent), Grand Junction (+0.7 percent) and Colorado Springs (+0.4 percent). The Colorado Springs and Grand Junction MSAs are the only two areas that have not regained prerecession employment levels in Colorado.
Statewide, the biggest employment gains in August compared with the same month last year were in the mining and logging, manufacturing, and education and health services sectors.
For more information about the Leeds School’s Business Research Division and the fourth quarter report visit http://leeds.colorado.edu/brd.
Contact:
Richard Wobbekind, 303-492-1147
richard.wobbekind@colorado.edu
Brian Lewandowski, Leeds School of Business, 303-492-3307
brian.lewandowski@colorado.edu
Elizabeth Lock, CU-Boulder media relations, 303-492-3117
elizabeth.lock@colorado.edu
