Trade Deals Improve Colorado Ag and Business Confidence
The US and China are expected to sign a trade agreement this month. That’s easing tension for Colorado agricultural and business leaders.
Many of the details of the deal are still unknown but Agriculture Department Chief Economist Rob Johansson did say China has committed to making big money ag buys over the next two years.
Rob Johansson:“As much as 80 billion in purchases by China over the next two years. On average 40 billion a year. In previous years China has purchased almost 25 billion from us so they’re committing to purchase that 25 billion plus an additional 15 billion in each of the next two years, totaling 80 billion in purchases.
Johansson also said the new trade pact with Japan is opening up those markets for US growers and we should see an increase of exports for beef and pork and also for wheat and barley.
Meanwhile, Colorado business leaders’ confidence is up as we enter the first quarter of 2020, rebounding to just above neutral. That’s according to a survey by the Leeds School of Business at Colorado State University. The index increased nearly 4 points to 50.8. Easing trade disputes between the US and China and Japan and other important trading partners is credited with the increased optimism.
The Leeds Business Confidence Index captures Colorado business leaders’ expectations for the national economy, state economy, industry sales, profits, hiring plans, and capital expenditures.