Key Highlights
- 65% of executives expect the state business climate to worsen over the next six months.
- Inflation in Denver was up 3.1% in September compared to July’s 2.1%, with beef and veal prices increasing by 12.9%.
- Colorado’s unemployment claims have increased, with initial claims for October up nearly 1,000 people since September.
- 60% of business leaders expect to maintain or grow their Colorado workforce despite economic challenges.
Economic Outlook in Colorado: Challenges and Optimism
The outlook for businesses in Colorado remains mixed according to the inaugural Fall 2025 Executive Outlook Survey conducted by the Colorado Business Roundtable. While a majority of executives expect state policies to negatively impact their business, nearly two-thirds anticipate the state’s overall climate worsening over the next six months.
Regulatory and Cost Pressures
The survey highlights significant challenges for businesses, including rising costs, regulatory burdens, and affordability issues. One major example cited is Proposition 118, which guarantees workers paid family and medical leave. Despite its intention to support employees, the implementation has been less than anticipated, as data from the first six months of the program show.
Technological Shifts and Talent Shortages
The business landscape in Colorado is also being shaped by technological advancements such as artificial intelligence (AI). A complex policy environment surrounding AI regulations is making it harder for businesses to navigate. According to Debbie Brown, president of the Colorado Business Roundtable, some companies are even considering a digital bypass strategy, focusing on states without stringent regulations.
Despite these challenges, there is an underlying optimism among business leaders regarding the state’s future. Jenifer Waller, president and CEO of the Colorado Bankers Association, believes that factors such as the entrepreneurial spirit and strong talent base will help businesses maintain or grow their workforces in Colorado.
Economic Data and Trends
Supporting the mixed outlook on the business climate are recent economic data points. Denver’s inflation rate rose to 3.1% in September, up from 2.1% in July, indicating a significant increase in costs for consumers and businesses alike. Beef and veal prices saw a substantial hike of 12.9%, while coffee prices increased by 18.9%.
However, other goods showed decreases; smartphones dropped by 14.9%, and some fresh fruit prices fell by 2.3%.
Unemployment claims in Colorado have also seen fluctuations. In October, initial claims for unemployment were up nearly 1,000 people since September. This trend is concerning as it could indicate companies are closing or leaving the state. However, there are signs of resilience; business renewals dropped only 1.8%, which is larger than the average decline over the past 20 years.
Conclusion
A Complex Picture
The economic landscape in Colorado presents a complex picture, with both challenges and opportunities for businesses. While state policies and costs are creating hurdles, local assets like a vibrant entrepreneurial culture and strong talent base offer hope. As the business roundtable survey suggests, maintaining a balanced approach to policy-making could help mitigate some of these issues and foster continued growth.
