The Leeds Business Confidence Index (LBCI) Q3 2020
After falling to a historic low in Q2 2020, Colorado business leaders’ confidence improved ahead of Q3 and Q4 2020. A small majority (52%) continued to cite COVID-19 for their pessimistic outlook, but glimmers of optimism shone through with individuals citing resiliency and pent-up demand for the comparatively optimistic outlook. While Q3 confidence remained at levels recorded during the Great Recession, the quarterly increase marked a record improvement from Q2; the Q4 outlook rose just above neutral.
The Leeds Business Confidence Index (LBCI) captures Colorado business leaders’ expectations for the national economy, state economy, industry sales, profits, hiring plans, and capital expenditures. Ahead of Q3 2020, the index increased 14.6 points to 44.3, with 5 of the 6 components of the index below neutral (50). Signaling further improvement in the fourth quarter, the index rebounded to 51, just crossing the neutral threshold.