Confidence among Colorado business leaders about the future, already dropping, slipped to lows not seen since 2011, according to a new survey out Wednesday from the Leeds School of Business at the University of Colorado Boulder.
The barely held above neutral at 50.1 for the first quarter of 2019. In the second quarter of 2018, it was as high as 61.3.
Scores above 50 indicate a positive outlook, while those below 50 mark a more sour view regarding the outlook for the upcoming quarter on the index, which tracks expectations for the U.S. and Colorado economies, industry sales, profits, hiring and investment.
The outlook for the U.S. economy went sharply negative, with an index score of 42.5, while expectations for the Colorado economy remained slightly positive at 51.
The souring mood seems more rooted in uncertainty about national policy — higher interest rates, a divided Congress and trade disputes — than in the performance of the economy, said Richard Wobbekind, executive director of the business research division.
Hiring remains robust, the unemployment rate is still at historic lows and the economy is growing.
“I don’t think you can look at anything related to the real economy, other than perhaps housing, and say, ‘Itap really slowing down.’ There is plenty of spending power out there,” Wobbekind said in the report.
Weaker confidence, however, could reduce business investment, which could in turn drag down the larger economy.
