Business optimism in Calgary sinks despite eased pressures

Calgary business confidence plummeted to a three-year low, a Calgary Chamber of Commerce report shows.

Source: Wikimedia Commons

Calgary business confidence plummeted to a three-year low, a Calgary Chamber of Commerce report shows. The steep decline occurred despite improving labour and supply chain issues, pointing to deeper economic concerns among the city’s employers.

The Calgary Chamber reported to True North on Tuesday that overall business optimism dropped to 54 per cent in the fourth quarter of 2025, down from 80 per cent at the start of the year. Pessimism climbed to a yearly high of 27 per cent.

The findings suggest persistently high costs and economic uncertainty are outweighing operational improvements for many businesses heading into 2026.

While fewer Calgary businesses expect supply chains to worsen and labour shortages have eased, cost pressures remain the dominant concern. The majority of businesses (58 per cent) cited rising costs as their top challenge, unchanged from the previous quarter.

In a statement included with the report, Calgary Chamber President and CEO Deborah Yedlin said the relief businesses are seeing in some areas has not translated into renewed confidence.

“While businesses are seeing signs of relief when it comes to labour and supply chain pressures, this has not translated into stronger confidence about the future,” said Yedlin. “Persistently high costs and ongoing economic uncertainty continue to weigh heavily on investment decisions, offsetting these improvements and eroding optimism.”

The report also warns that weakening sentiment is already affecting decision-making, with businesses becoming more cautious about hiring, investment, and long-term planning.

“Without certainty, businesses delay critical growth decisions, including hiring, making investments and long-term planning,” Yedlin added. “Persistent uncertainty of this magnitude risks stalling economic growth across Canada.”

The Calgary data aligns with broader national trends identified in a December study by the Canadian Federation of Independent Business (CFIB). While the CFIB reported a modest rebound in long-term small business confidence nationally, it also found underlying challenges remain widespread.

“December’s numbers are encouraging, but they don’t tell the full story,” said CFIB chief economist Simon Gaudreault in the December 18 release. “While confidence is getting back to its historical average, more than half of businesses are continuing to report insufficient demand as the top growth constraint. That’s a clear signal that the economy is still fragile heading into 2026.”

The CFIB report found that insufficient demand remains the top growth barrier for Canadian small businesses, cited by 54 per cent of respondents. Tax and regulatory costs, wage pressures, and insurance expenses also continue to weigh heavily on operations.

“Business owners have told us that 2025 has been a real rollercoaster. It’s been both challenging and unpredictable,” said CFIB director of economics Andreea Bourgeois. “Even with some positive signs overall, concerns about demand, costs and staffing continue to weigh heavily as ongoing trade uncertainty makes it hard to plan ahead.”

The Calgary Chamber of Commerce urged all levels of government to focus on reducing business costs, streamlining regulation, lowering internal trade barriers and accelerating trade-enabling infrastructure to restore confidence and support long-term growth.