The Leeds Business Confidence Index (LBCI), compiled by the Business Research Division, posted its second consecutive increase, moving from 35.5 to 47.5, after recording a record-low in the first quarter of this year. The forward-looking LBCI is comprised of six index components. For the third quarter, all six of the index components recorded gains, a sign of increased optimism.
The components measuring the state economy and sales outlook edged past the neutral mark of 50. On the other hand, business leaders expressed continued concern about profits, hiring, capital expenditures, and the performance of the national economy. These four factors were a drag on the overall indicator keeping it in negative territory.
Key points from the recent results include:
• The outlook for both the state and national economies are greatly improved.
• The prospects for the state economy remain more positive than the nation.
• Historically, business leaders have been most upbeat about sales.
• It is likely that companies will begin to experience measurable expansion in sales.
• Business leaders will remain in a cost containment mode as they continue to focus on the bottom line.
• Both hiring and expansion plans will remain on hold for as long as possible.
Check in again during the fall for the next release of the LBCI. Colorado business leaders are invited to serve as panelists for the September LBCI survey by clicking here. For those interested in following the economy by simply staying on top of the economy, click here.
