Jan. 4—Colorado was ranked as a top state in the nation for per capita personal income, according to a report released Wednesday by the Leeds Business Research Division at the University of Colorado Boulder.

Colorado's per capita personal income increased 7.9% year-over-year in the third quarter of 2022 and personal income increased 8.5%, making Colorado the second highest in the nation.

Per capita personal income is calculated as the personal income of the residents of a given area divided by the population of the area.

Personal income growth is forecast at 6.2% in 2023, the report showed.

"The most significant data at the state level I think in terms of 'wow' effect is looking at the personal income data," Richard Wobbekind, senior economist and faculty director of the Business Research Division and at the University of Colorado Boulder, said.

"Our personal income numbers look very, very strong."

Wage and salary personal income growth is anticipated to stay strong as employment continues to climb, the report read.

Colorado's gross domestic product (GDP) also reached notable heights after it increased at an annualized rate of 3.5% in the third quarter (ranking 16th nationwide) and 3.2% year-over-year (ranking sixth nationwide), according to the report.

That surpassed the national GDP, which was at an annualized rate of 3.2% in the third quarter of 2022 and 1.9% year-over-year, the report said.

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Colorado's real GDP is projected to increase 2% in 2023, data showed.

The state's employment recovery also outpaced most other states, increasing 2.9% above the pre-recession peak as of November, the report read, putting Colorado's job recovery at 11th in the nation.

Despite what recent data showed, Colorado business leaders maintained a dark outlook for the first quarter of 2023, with the fourth-lowest confidence index in the index's 20-year history.

"Business leaders seemed to be a little bit more pessimistic than what we perceived as the coming reality," Wobbekind said. "Well again, unfortunately, there's been no improvement in the perceptions this quarter."

High interest rates and inflation, labor shortages, and fears about slowing consumer spending, have kept business leaders discouraged, the report showed.

The Leed Business Confidence Index measures business leaders' expectations for the national economy, state economy, industry sales, profits, hiring plans and capital expenditures.

Despite the gloomy outlook, business leaders have a slightly better outlook for the second quarter of 2023.

"Business leaders are more optimistic out into the second quarter" Wobbekind said. "And you would argue that they're saying the worst is upon us ... right now."