Business & Tech
Colorado Business Optimism Hits Historic Low: Report
Optimism among Colorado business leaders has dropped to a historic low amid the new coronavirus pandemic, according to a new report.
Amid the spread of the new coronavirus, Colorado business leaders’ optimism dropped to its lowest point in the 17-year history of the Leeds Business Confidence Index.
The quarterly report, produced by the Leeds Business Research Division at the Leeds School of Business, assesses Colorado business leaders’ expectations for the state and national economies, industry sales, industry profits, hiring and business spending. More than 400 business leaders responded to the latest survey, which was conducted between March 1 and March 20, the school said.
Looking forward to the second quarter of 2020, the overall index is 29.7. A score of 50 indicates a neutral outlook. All six categories are well below 50, with the national economy posting the lowest outlook at 21.8, according to the report.
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“The survey reflects the rapid deterioration of the economy and how business leaders are digesting the early days of this worldwide crisis,” Brian Lewandowski, executive director of the Leeds Business Research Division, said in a statement. “Our survey also took place before the latest batch of economic data, which doesn’t look very promising.”
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Most of the panelists cited coronavirus for their pessimism, with 86 percent pointing to the pandemic, according to the report. Panelists also pointed to the overall economy, upcoming election and the oil market.
Some business leaders expressed more optimism about the state economy for the upcoming quarter, with a score of 28.8. They gave hiring and business spending higher marks than business leaders submitted during the Great Recession, the school said. Colorado business leaders also expect the economy to rebound somewhat, giving the third quarter of 2020 a score of 38.2.
“There is optimism that the worst of the impact will be short-lived,” Lewandowski said. “Although this is a big drop for one quarter, the index saw a bigger cumulative drop during the Great Recession. This looks like it could be different.”
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