More concerned about national politics and international trade, Colorado business leaders are less optimistic about the economy and other aspects of their operations, according to the latest results of a quarterly survey.

“Businesses just hate uncertainty. When you give them uncertainty, they become very cautious. They stop investing. They stop hiring. And they take a wait-and-see approach,” said Richard Wobbekind, executive director of the research division of the Leeds School of Business at the University of Colorado at Boulder.

The Leeds Business Confidence Index declined to 50.5 for the third quarter. That’s down 2.2 points from the second quarter and 9.1 points from the third quarter of 2018.

While the index reflects more positive than negative responses, for now, it could slip in the fourth quarter below growth-neutral 50 for the first time since 2011.

The index is based on the results of surveys of business leaders from across Colorado and a range of industry sectors.

For the third quarter, readings fell for all six of the metrics the index tracks, but remained above 50 for four metrics.

Confidence in the Colorado economy fell to 49.6, 2.3 points below the second quarter and 13.8 points below this time last year. While 20.5 percent of those who responded to the latest survey expect moderate or strong increases in the economy, 57.1 percent anticipate no change and 22.5 percent predicted moderate or strong decreases.

Wobbekind said the Colorado economy remains strong. “These confidence numbers do not paint the same picture of what you actually see in the economy — 1.8 percent employment growth is a healthy employment number. Until we see something that’s pointing in the negative direction, it does seem business leaders are a bit cautious.”

Confidence in the national economy fell 3.1 points to 43.1. While 15 percent of business leaders anticipate moderate or strong increases, 42.5 percent expect no change and 40.6 percent foresee a moderate decrease.

Wobbekind said business leaders most often cited national politics and trade concerns in their responses.

Business leaders remained most optimistic about sales, although the reading fell 1.1 points to 55.6. While 41.7 percent of leaders expect moderate or strong increases in sales, 36.6 percent anticipate no change and 21.7 percent predicted moderate or strong decreases.

The reading for profits fell 3.1 points to 52.4 with 34.7 percent of leaders expecting moderate or strong increases, 40.2 percent foreseeing no change and 25.2 percent anticipating moderate or strong decreases.

The reading for hiring fell 3.1 points to 51 with 28.7 percent of business leaders anticipating moderate or strong increases in staffing, 46.1 percent expecting no change and 25.2 percent predicting layoffs.

The reading for capital expenditures fell seven-tenths of a point to 51.1. While 29.5 percent of leaders expect moderate or strong increases in spending, 42.9 percent foresee no change and 27.6 percent anticipate moderate or strong decreases.