An increase in new business filings bodes well for continued job growth and improving economic conditions in Colorado, according to the latest results of a quarterly report.

But even as new businesses open, existing business close. Concerns about inflation and other challenges continue to dampen expectations.

“Our latest data shows Colorado’s economy continues to excel relative to the nation. However, business leaders still remain pessimistic of the short-term economic outlook,” said Rich Wobbekind, senior economist and faculty director of the business research division of the Leeds School of Business at the University of Colorado at Boulder.

The division prepares the report based in part on business filings with the Colorado secretary of state’s office.

The third quarter report offers much to celebrate, said Jena Griswold, secretary of state. “With the state’s GDP, employment, income and labor force all ranking above the national average, we must ensure Colorado’s working families and business community thrive.”

According to the latest report, 43,657 new businesses, nonprofit corporation and other entity filings were recorded during the third quarter. That’s an increase of 10.6 percent over the second quarter and 14.5 percent over the third quarter of 2021.

The increase defied what’s usually a seasonal decrease between the second and third quarters.

A total of 162,414 new entity filings were recorded over the year ending in the third quarter, up 3.8 percent from the same period a year ago.

New entity filings constitute a leading indicator of subsequent business and job growth.

For the third quarter, 163,807 existing entity renewals were filed. That’s down 4.8 percent from the second quarter, but up 1 percent from the third quarter of 2022.

For the year ending in the third quarter, 694,194 existing entity renewals were filed. That’s an 8.6 percent increase from the same span a year ago.

A total of 884,284 businesses, corporations and other entities were in good standing as of the third quarter of 2022, up 5.2 percent from a year ago.

Dissolutions and delinquencies also increased on a year-over-year basis, an indicator of business strains.

There were 11,614 dissolution filings in the third quarter, up 27.1 percent from a year ago. Over the year ending in the third quarter, there were 47,564 dissolution filings, up 21.7 percent from a year ago.

There were 790,719 delinquencies, an increase of 10.1 percent from a year ago.

Other economic indicators monitored in the report also were mixed.

Gross domestic product, the broad measure of goods and services produced in the state, declined at an annual rate of 2 percent in the second quarter, the latest quarter for which information is available. Still, GDP increased 3 percent year over year.

Colorado ranks eighth among the 50 states for per capital income of $73,357 and first for per capital income growth of 6 percent.

According to the Baker Hughes Rig Count, the number of active rigs in Colorado doubled between October 2021 and October 2022 to 22.

Challenges persist, however, among them inflation.

The Consumer Price Index for the Denver-Aurora-Lakewood region was up 7.7 percent in September compared to the same month a year ago. Retail gasoline prices were up 1.8 percent in October compared to a year ago, but down 24.7 percent from a spike in June.

The latest results of a quarterly survey of Colorado businesses reflected more pessimism heading into the fourth quarter.

The Leeds Business Confidence Index fell 1.3 points to 39.8 for the fourth quarter. That’s the fourth-lowest reading in the 20-year history of the index. Readings below 50 reflect more negative than positive responses.

Along with the overall score, individual scores for each of six metrics the index tracks remained below 50 in the fourth quarter. While expectations for the state and national economies increased, expectations for capital expenditures, hiring, profits and sales all decreased.