A recent survey conducted by CU Boulder economists has shown that Colorado business sentiment took a dip in the latest quarter due to concerns about interest rates and political uncertainty. Despite these concerns, businesses in Colorado reported feeling neutral about the economic outlook in the third quarter of 2024, scoring 50.6 in confidence according to the survey. This is a decrease from the previous quarter’s score of 53.7, but still much higher than the same quarter last year, which scored 44.1.
Brian Lewandowski, executive director of the Business Research Division at the Leeds School of Business at CU Boulder, noted that respondents are currently preoccupied with the election cycle and how it might impact their economic outlook. This sentiment is common around presidential elections according to Lewandowski. However, Colorado business leaders remain more optimistic about the state economy compared to the national economy, a trend that has been observed in survey results over time.
Consumer demand in Colorado is still growing, with job postings exceeding the number of unemployed workers, indicating a continued need for workers. While some industries are experiencing job losses due to high interest rates such as mortgage brokers and bankers, some sectors are expected to end the year with job losses particularly those sensitive to interest rate changes. Despite this challenge, Colorado’s employment growth increased by 1.9 percent year-over-year in May 2024 and personal income rose by 4.8 percent in the first quarter of 2024 ranking it 15th and 14th respectively which reflects that Colorado’s economy generally performs better than the nation as a whole.
It’s worth noting that while political uncertainty is a concern for many business leaders in Colorado, it’s not new ground for them as they have experienced similar concerns during previous presidential elections.
In summary, despite concerns about interest rates and political uncertainty, businesses in Colorado reported feeling neutral about their economic outlook for Q3 2024 with consumer demand still growing and unemployment decreasing compared to previous quarters
