Economic pessimism persists among businesses

BY SARAH MULHOLLAND COLORADO PUBLIC RADIO

Colorado’s business leaders are stuck in a glum mood about the economy’s prospects for the year ahead.

More than half of respondents to the Leeds Business Con dence index think the U.S. will enter a recession in the rst half of 2023. e index is a quarterly survey of business leaders that is conducted by economists at the University of Colorado’s Leeds School of Business. In ation and rising interest rates are the leading concerns of those surveyed.

e economic forecast feels dim even though the job market is solid — the state’s unemployment rate is 3.5% — and other indicators, such as gross domestic product, are stronger than had been anticipated a year ago. e state’s business leaders appear to be looking at their own internal numbers and seeing a slowdown, however, even if the broader data isn’t showing it yet, said Richard Wobbekind, senior economist and faculty

“ ere just continues to be, I think, just too much uncertainty,” Wobbekind said during a conference call with reporters Wednesday.

Respondents are feeling pessimis- tic about nearly all the indicators included in the index, such as sales, pro ts, hiring and capital expenditures. Indeed, more than half had a negative sales outlook for the rst quarter of 2023.

“So de nitely, in terms of sales, not pretty,” Wobbekind said. “Businesses are looking at the environment that they’re in and suggesting… weaker sales and weaker pro ts.” is story is from CPR News, a nonpro t news source. Used by permission. For more, and to support Colorado Public Radio, visit cpr.org.

On a positive note, more than half of respondents expect the supply chain problems that have wreaked havoc on U.S. businesses and consumers since the start of the pandemic will continue to ease in 2023.