Business Indicators for Q3
- According to the Secretary of State’s report, new entity filings in Colorado rose 7.2% year-over-year (YoY) in Q3 2025, yet fell 12.9% quarter-over-quarter. The rise suggests business creation remains relatively strong compared with a year ago, but the drop from the previous quarter may indicate a seasonal or momentum weakening.
- Colorado’s employment grew 0.6% YoY in August 2025, adding about 18,300 jobs. That growth ranked the state 34th nationally. Unemployment in Colorado ticked down to 4.2% in August, ranking 34th among states. Job growth continues but is modest and the flat labor force growth plus declining participation may constrain Colorado’s economic upside.
Business Confidence
- Colorado business leaders remain cautious heading into the fourth quarter of 2025, with the Leeds Business Confidence Index falling to 36, one of its lowest readings in recent years. Confidence declined across nearly all categories—state and national economic outlooks, sales, profits, hiring, and capital spending—reflecting broad pessimism about near-term conditions. Respondents cited political uncertainty, tariffs, and inflation as top concerns dampening expectations.
- While Colorado’s economy continues to grow modestly, up 3.5% quarter-to-quarter, and inflation has eased to around 2–3%, the sentiment among business owners suggests a “holding pattern” rather than expansion.
- Stronger sectors like health care, professional services, and arts and entertainment contrast with weakness in utilities and administrative services, underscoring a patchy recovery and lingering unease about the direction of the broader economy.
