Despite an economy exceeding expectations, Colorado business leaders remain glum, new data shows.

The Leeds Business Confidence Index, released Thursday, dipped slightly ahead of the final quarter of the year, with interest rates, inflation and politics cited as top concerns.

The index is produced on a quarterly basis by the Leeds School of Business at the University of Colorado at Boulder; the latest index recorded a score of 43.6, down half a point from the previous quarter. A score of 50 is neutral.

All six components of the index were in negative territory, according to a news release. Respondents expressed the most optimism in industry sales, 48.2, up slightly from 48.

They were the least optimistic about the national economy, with 40.2 points, though the release noted that number has improved throughout the year.

Interest rates and inflation remain top concerns with 34% and 16% of respondents, respectively, noting those factors as reasons for their negative outlook; inflation worries, though, have eased, with the number of respondents who listed inflation as a top concern down 11%, the release said.

More respondents expect hiring to slow in the fourth quarter (41%) compared to 14.4% who maintained a positive outlook; 44.6% remained neutral.

Colorado’s unemployment rate edged up to 3.1% in August, the first time in more than a year that the state’s rate exceeded 3%, but remains below the national rate.

“It is notable that a majority of business leaders reported that the 2023 economy has outperformed their expectations through the first half of the year, while still remaining bearish on their economic outlook.” Brian Lewandowski, executive director of the Leeds Business Research Division, said in the release.