By Staff Report Monday, August 3rd, 2026

Columbia Bank’s annual Business Barometer survey was recently released and included insights into how California business owners feel about the next year.

Among the key findings: In California, 53% of businesses expect to increase their headcount over the next 12 months, while 52% say they will wait six to 12 months before making major business decisions as they monitor tariffs, inflation and rising energy costs. 

California businesses are more optimistic about the economy than businesses overall, with 61% expecting the economy to improve over the next 12 months (compared to 52% overall) and 64% rating current economic conditions as good or excellent. 

Additionally, California businesses remain growth-oriented despite economic uncertainty, with 76% expecting demand to increase, 67% anticipating revenue growth and 64% expecting profitability to improve over the next year. 

AI remains a top investment priority, with 62% of California businesses planning AI investments, 58% believing AI will strengthen their business, 98% expecting it to boost productivity and 90% saying it will improve employee satisfaction and retention. 

Finally, tariffs remain a concern for California businesses, with 38% saying tariffs have already harmed their businesses, 39% expecting trade volatility to persist for another one to two years, and 76% planning to seek tariff refunds.

Source: Columbia Bank 

53% — of businesses expect to increase headcount in the next 12 months

52% — of businesses will wait 6–12 months before making major business decisions

38% — of businesses said that tariffs have already harmed their businesses