Calgary, AB, May 20, 2026 – After business confidence dipped to a three-year low in Q4 2025, Calgary businesses are reporting a modest rebound in optimism to start 2026. While sentiment is improving, new and persistent cost pressures are reshaping the business environment.
Specifically, business optimism rose 13 percentage points from Q4 2025 to Q1 2026, from 54 per cent to 67 per cent respectively, returning to levels more consistent with much of 2025. Concerns around supply chains have also eased slightly, down two percentage points from the previous quarter and 29 per cent year-over-year. Labour-related pressures remain largely unchanged as well.
“After a year of uncertainty affecting Canadian businesses, we’re seeing a period of relative stabilization in terms of optimism, labour and supply chains,” says Deborah Yedlin, President & CEO at the Calgary Chamber of Commerce. “Although this is not a signal that conditions are easy, it does show that businesses are adapting to a new reality within today’s uncertainty.”
Despite an increase in business confidence, 65 per cent of businesses identify rising costs as their most significant concern, up seven percentage points from last quarter. Inflationary concerns have also intensified, rising to 46 per cent in Q1 – in line with Canada’s annual inflation rate increasing in April. Adding to these pressures, fluctuating consumer demand has emerged as the third most significant concern, rising 11 percentage points since last quarter and reaching its highest level since Q2 2022. This comes as Canada recorded its highest level of insolvencies filed in Q1 since the global financial crisis in 2009, underscoring broader financial strain across the economy.
“Businesses are navigating an environment where costs are rising and demand is less predictable – compounded by both external geopolitical factors and internal policy debates, including secession – which continue to add volatility to the investment climate,” adds Yedlin. “With CUSMA review on the horizon and ongoing global energy and shipping disruptions increasing prices and inflation, we encourage all levels of government to maintain a strong focus on reducing uncertainty. Stable, predictable policy is one of the most effective tools we have to support business confidence and investment.”
Quick Facts
- Business optimism has risen from 54 per cent in Q4 2025 to 67 per cent in Q1 2026.
- Business pessimism has fallen from 27 per cent in Q4 2025 to 23 per cent in Q1 2026.
- 38 per cent of businesses expect supply chains to worsen, down from 67 per cent in Q1 2025. 57 per cent expect supply chains to remain the same, and 5 per cent expect improvement.
- Cost-related pressures remain the top concern, cited by 65 per cent of businesses, followed by inflation at 46 per cent and fluctuations in consumer demand at 30 per cent.
- 30 per cent of businesses report labour-related obstacles, down one per cent from Q4 2025. Specifically, 11.6 per cent cite a shortage of workers and 23.4 per cent report difficulty recruiting skilled employees.
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About the Calgary Chamber of Commerce
The Calgary Chamber exists to empower our business community to advance a prosperous Calgary and Canada. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification and opportunity. As an independent, non-profit, non-partisan organization founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city.
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