CBIA survey: Rising household costs add pressure to CT’s business economy

Half of respondents to a new Connecticut survey said they are worse off financially than they were a year ago, as rising household costs and concerns about the state economy threaten to create additional pressures for businesses. The CBIA Foundation for Economic Growth & Opportunity’s 2026 Summer/Fall Connecticut Consumer Outlook found 50% of respondents said their financial situation had worsened over the past year, up six percentage points from November 2025. Meanwhile, 87% of respondents said their cost of living — including expenses such as groceries, gasoline and electricity — had increased during the past 12 months. The foundation partnered with the University of New Hampshire Survey Center’s States of Opinion Project to produce the Connecticut Consumer Outlook. The survey was conducted Aug. 20-24 and was completed by 917 Connecticut residents. Respondents included 718 members of the center’s probability-based Nutmeg State Panel and 199 randomly selected residents invited to participate by text message. The survey has a margin of sampling error of plus or minus 3.2 percentage points. The findings point to financial pressures that could have broader implications for Connecticut businesses, including consumer spending and employers’ efforts to attract and retain workers in a state where affordability has become an increasingly prominent economic concern and dominant theme in the statewide election for governor and the General Assembly. “Consumer sentiment echoes what we have been hearing from businesses — the cost of living is putting increased pressure on Connecticut residents,” said Chris DiPentima, president and CEO of the Connecticut Business & Industry Association and president of its foundation. The survey also found widespread pessimism about the state economy. Only 10% of respondents expect good economic conditions in Connecticut over the next year, while 51% expect the state to experience a recession during that period. Those findings measure consumer expectations and do not constitute an economic forecast, but they could be significant for businesses if concerns about household finances cause consumers to become more cautious about spending. Healthcare is another significant source of financial pressure, the survey found. Nearly half of respondents, 48%, said paying medical expenses is difficult, while 59% said their medical costs increased over the past year. The survey also highlighted concerns about Connecticut’s workforce. Half of respondents described the state’s labor shortage as a serious problem. Employers across Connecticut have struggled in recent years to fill jobs in industries ranging from healthcare and manufacturing to construction and hospitality. High housing, healthcare, energy and other living costs can complicate employee recruitment and retention efforts, particularly when workers have the option of living or working elsewhere. “When families struggle with affordability, employers struggle to attract and retain talent, and communities feel the impact,” DiPentima said. The survey found financial concerns cut across income and political affiliation, although views of the national economy were more sharply divided along partisan lines than perceptions of the state’s economy. Andrew Smith, director of the UNH Survey Center, said Connecticut residents are broadly concerned about prices regardless of income or political affiliation. The survey also found dissatisfaction with state policymakers’ handling of economic issues, with just 22% of respondents approving of the state legislature’s handling of the economy and job creation. The CBIA Foundation said addressing affordability and expanding economic opportunity will be important to improving Connecticut’s competitiveness. The foundation is a nonprofit affiliate of CBIA focused on research and initiatives aimed at strengthening the state economy.