Connecticut businesses reported solid profits and sales growth last year, but say rising costs and a shrinking labor force weigh heavily on their outlook for the state economy, according to an annual survey released Thursday.
The 2026 Survey of Connecticut Businesses, conducted by the Connecticut Business & Industry Association’s Foundation for Economic Growth & Opportunity, found that 70% of respondents turned a profit in 2025, while 15% broke even and 15% reported losses. Sixty-five percent said they expect to be profitable this year.
Despite those results, only 27% said they expect the state’s economy to grow over the next 12 months, while 44% anticipate little change. Just 9% said the state’s business climate is improving, compared with 38% who believe it is declining.
Cost pressures remain widespread. Nine in 10 respondents reported increased costs, including higher healthcare, labor, energy, tax and regulatory compliance expenses. Healthcare costs are a particular concern: 88% said per-employee health insurance costs increased at their most recent renewal.
Finding workers also remains a major challenge, with 72% of respondents reporting difficulty finding and retaining employees. Skills gaps and Connecticut’s high cost of living were among the factors cited.
A lack of skilled workers was identified by 25% of respondents as the main issue hindering business growth, while 18% cited healthcare costs and 14% cited unpredictable legislative decision-making.
Healthcare costs and accessibility were cited by 54% of respondents as a top priority for the General Assembly in 2027, followed closely by energy costs at 52%.
The survey was released Thursday morning during CBIA’s annual The Connecticut Economy conference, held at the Hartford Marriott Downtown and attended by more than 400 people.
Republican gubernatorial candidate Sen. Ryan Fazio of Greenwich and Democratic Gov. Ned Lamont were scheduled to appear separately later in the program to discuss their economic agendas ahead of the Nov. 4 election.
The CBIA Foundation commissioned the University of New Hampshire Survey Center to conduct the survey. Invitations were sent to more than 3,300 executives from June 2 through July 7, with an 11% response rate. Of the responding companies, 70% employ fewer than 50 people.
The results come a week after a separate CBIA Foundation survey found 50% of Connecticut residents said they were financially worse off than a year earlier and 87% reported that their cost of living had increased.
Original article found on Hartford Business
