Survey Finds Growing Hesitation Ahead Of Q3 2015
The latest quarterly Leeds Business Confidence Index, published by the University of Colorado’s Leeds School of Business, indicates business leaders across the state are still positive on the economy, but less confident than earlier this year. The index declined from 61.7 ahead of Q2 2015 to 58.3 ahead of Q3 2015. Expectations for the national economy fell by 5 index points, while expectations for the state economy were down 2.1 points. The Denver Post reports the decline from 61.7 to 58.3 was the biggest total decrease in the index since Q2 2013. However, any score above 50 on the index indicates “positive expectations”, meaning the state’s businesses still view the economic outlook more positively than negatively. The index measures indicators like the national economy, capital expenditures, local economy, and hiring plans.
The index has seen a score of at least 50 for 15 quarters in a row as the state and national economies have continued to rebound. Economist Richard Wobbekind, head of the business school’s Business Research Division, commented on the latest index results. He said, “While the index is still comfortably positive heading into quarter three, business leaders expressed some hesitation. Potential headwinds bringing down expectations in Colorado may include the production impact of lower oil prices, relatively high cost of housing, tight labor market and macroeconomic factors impacting exports.”
What This Means For Small Businesses
Denver’s small business owners are looking for continued signals that the area’s economy is revitalized. Though no one survey can paint a complete picture of the area’s economic growth, the latest data could be a hint that recent economic gains may be slowing.
Additional Reading
NFIB previously noted positive jobs data for the Denver area.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
