Colorado Business Confidence Surges, Turning Positive for First Time in Two Years

Colorado’s business confidence rebounds after 2-year slump

Business confidence in Colorado has surged and turned positive for the first time in two years, according to a report from the University of Colorado Boulder. This shift is reflected in the Leeds Business Confidence Index, which shows that 178 panelists surveyed have a positive outlook for the national economy, state economy, industry sales, profits, hiring plans, and capital expenditure.

Colorado business leaders are more optimistic about the Colorado economy than they are about the U.S. economy, with a score of 54.1 compared to 51. The category that saw the highest optimism was industry sales, with a score of 57.9. This improved outlook often leads to increased spending and hiring, as reflected by the hiring plans index increasing from 45.3 in the first quarter to 50.1 in the second and third quarters.

Despite concerns about high inflation, consumer prices have risen by 3.5% year-over-year in the Denver-Aurora-Lakewood area in January, according to the U.S. Bureau of Labor Statistics. However, forecasts from CU Boulder’s Business Research Division predict that inflation will run above 3% this year. Despite concerns about higher interest rates potentially causing a recession, job growth has remained steady in Colorado, with 72,700 jobs added in 2023 representing a growth rate of 2.5%.

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